New Hampshire built more housing in 2025 than any year since 2006. Over 5,800 units statewide, with 62% of them in multi-unit buildings (the highest share since the state started tracking in the mid-1970s). Dover, Rochester, and Portsmouth were among the top towns for building permits. And it still wasn't enough. The state hit only about 80% of its housing target for 2020 to 2025, and another 62,000+ units are needed by 2040 to reach a balanced market. That gap is the story for anyone who owns or is looking to own rental property on the Seacoast.
Where Rents Are Right Now
Two-bedroom apartments in Rochester are running $1,800 to $2,050 per month, depending on condition and location. In Dover, that same unit is pulling $2,000 to $2,300. Statewide vacancy is sitting around 4%, compared to the national average of 7.3%. The demand is structural: not enough housing, strong job growth along the Route 16 and Spaulding corridors, and a steady flow of people relocating from Massachusetts who find Seacoast rents (and property taxes) more reasonable than what they left behind.
Rockingham County median single-family prices are in the $650K to $660K range as of Q1 2026. Strafford County is more accessible, which is why investor activity continues to concentrate in Rochester, Somersworth, and the outskirts of Dover. At those price points, a well-located 3- or 4-unit property can still pencil with the rent roll covering your PITI and leaving room for reserves.
NH's New ADU Law Changes the Math for Property Owners
If you own a single-family home anywhere on the Seacoast, a law that took effect July 1, 2025 (HB 577) now requires every municipality to allow at least one accessory dwelling unit by right on any lot zoned for single-family. That means no conditional use permits, no special exceptions, no town board approval hoops. The unit can be detached (above a garage, in a converted barn, a standalone cottage) and must be allowed up to 950 square feet.
For investors, this is significant. If you buy a single-family with a detached garage or extra land, you now have a legal path to add a rental unit without a zoning fight. A property that cash flows modestly as a single-family can look very different with an ADU generating $1,200 to $1,500 per month. Towns can still require owner-occupancy of one unit, but they cannot dictate which unit the owner lives in. That's a meaningful shift for house-hackers and small-scale investors alike.
What's Actually Getting Built (and Where)
Rochester is in the middle of a real push. The city issued an RFP for the redevelopment of six parcels at 161 South Main Street, a 6.6-acre downtown site (the former Care Pharmacy location). Proposals were due in February 2026, and finalists were notified in March. The Mitchell Hill subdivision on Chesley Hill Road has 75 single-family lots proposed by Grondahl Family LLC out of Portsmouth, with construction targeting 2025. Rochester's economic development office has been actively courting mixed-use and residential projects along the downtown corridor.
Dover's waterfront redevelopment project is delivering its first units this year, with substantial completion projected for early 2026. Buildings C and D plus townhouses in Phase I are coming online near downtown, and pricing is expected to land in line with The Orpheum (Dover's benchmark for newer market-rate apartments). In Portsmouth, the Housing Authority broke ground on the Sherburne School Workforce Housing project: 90 permanently affordable units serving over 200 residents. The PHA also received $375,000 in tax credits from the NH Community Development Finance Authority for its Court Street project. Meanwhile, the McIntyre federal building redevelopment remains stalled in litigation.
The takeaway: new supply is coming, but it's almost entirely market-rate or affordable-designated. Very little of it is investor-owned small multifamily. The 2- to 4-unit buildings that make up the backbone of Seacoast rental housing are not being replaced, and the ones that exist are only getting more valuable.
Why NH Remains the Best State in New England for Landlords
No state income tax on rental income. No rent control (and no serious legislative appetite for it). Straightforward eviction procedures compared to Massachusetts or Vermont. A 2- to 4-unit property qualifies for residential financing: 25% down conventional, or as little as 3.5% FHA if you owner-occupy one unit. These aren't abstract advantages. They show up directly in your monthly cash flow and your ability to scale.
The Seacoast in particular benefits from geographic constraints. You have the ocean to the east, the Maine border to the north, and conservation land throughout the region. The towns that are building (Rochester, Dover) still can't keep pace with demand, and the towns that aren't (most of the coastal communities) are only getting tighter.
Off-Market Is Where the Deals Are
The best multifamily acquisitions on the Seacoast are not hitting the MLS. They're coming from direct outreach to absentee owners, tax lien lists, and estate situations. Many long-time landlords in Rochester and Somersworth are sitting on buildings with below-market rents and deferred maintenance. They're not listing with an agent because they don't want 40 showings. They want a clean offer from someone who understands the property and can close without drama.
That's the approach we take with every deal we pursue. We own and manage multifamily across the Seacoast, and we work with investors who are building portfolios the same way. If you're looking to buy, sell, or just run the numbers on a property, we're happy to talk.
Let's Talk Multifamily