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The Cost of Overregulation: How Zoning Laws Are Undermining New Hampshire’s Future

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Elm Grove Companies Logo
Elm Grove Companies Logo

New Hampshire’s motto, “Live Free or Die,” embodies a proud tradition of independence. Yet, excessive zoning regulations have eroded property rights and made housing increasingly unaffordable. A once-simple law has morphed into a complex web of local restrictions that prioritize stagnation over growth, leaving many Granite Staters struggling to afford a home of their own. 

 

The Rise of Overregulation 

For much of New Hampshire’s history, communities thrived with minimal government interference. This began to change in 1925 when the state adopted the Standard State Zoning Enabling Act, granting municipalities zoning authority. What began as a tool for basic land-use protections has expanded into 23,000 pages of regulations across 269 jurisdictions, dictating everything from lot sizes to building styles. 

This shift has placed undue power in the hands of a vocal minority. In many towns, just a few opponents at a local hearing can derail much-needed housing projects, regardless of size or complexity.  

Ironically, those who oppose housing developments often lament the soaring cost of housing and the painful reality that their families must leave the state to find an affordable home.  Is a state where families are forced to leave and head down south, just to find an affordable home wanted? Are there aspirations to transform New Hampshire into an exclusive enclave—where too many homes sit empty for much of the year as second homes or short-term rentals, while hardworking families struggle to find a place to live? Or, is it the goal to have New Hampshire’s values of freedom and opportunity endure for future generations? 

 

The Myth of Overburdened Schools 

One of the most common arguments against new housing is the fear that it will bring an influx of children and overwhelm local schools. But according to a 2024 study by NH Housing, the reality is just the opposite. 

School enrollments in New Hampshire have dropped by more than 20% in the last two decades, yet school budgets have remained largely the same. While some costs, like teacher salaries and supplies, adjust with student population, many—like buildings, maintenance, and administration—are fixed. As enrollment declines, the cost per student actually increases, putting more financial strain on schools and taxpayers alike. 

And the idea that new housing floods schools with kids? It’s a myth. The study found that most new housing developments produce far fewer students than opponents claim, especially multifamily housing, which generates fewer school-aged children per unit than traditional single-family homes. If anything, the challenge isn’t too many kids – it’s too few. 

 

The Consequences of Inaction 

New Hampshire housing is in a state of crisis. Over the past 30 years, 110,000 fewer housing permits were issued than in the past 30 years which serves as the root cause of the affordability crisis. When housing development slows so does investment. This could translate to fewer jobs, higher taxes and an overall negative impact among small businesses, families and retirees alike. In addition to the point of declining school enrollments, the rising per-student costs and aging workforce will further weaken economies and surrounding communities.  

 

Smart Growth  

Smart growth can achieve both preservation and progress. What’s more “New England” than a thriving, historic downtown? The vibrant and walkable main streets in towns such as Concord, New London, North Conway & Portsmouth were built long before zoning regulations existed. Under today’s laws, these designs would be illegal to replicate, and with the subdivisions permitted under current zoning, communities will lack the authenticity and vibrancy that has been achieved in the past. 

 

A Call to Action 

It’s high time for New Hampshire to take courageous steps to stem the tide of overregulation and achieve a balance between community benefit and individual property rights.  State legislators must act to restore this balance. Citizens can act by reaching out to their state representatives to demand reforms to protect property rights, promote responsible and affordable housing, and ensure New Hampshire remains a place where families of all incomes can thrive. Advocating for zoning changes at town meetings and holding local officials accountable to implement policies that reflect the needs of the many will help to foster vibrant and sustainable communities instead of exclusionary policies that stifle growth. 

 

Rising to the Challenge 

New Hampshire must rise to the challenge of ensuring property rights, expanding housing opportunities, and fostering thriving communities. Without action, the state risks becoming an exclusive enclave where only the affluent can afford to live. The choice is clear: embrace smart growth or allow overregulation to erode the future of our communities. 

The time to act is now. 

 

Sincerely, 

Matt Menning 

Principal & Head of Operations 

Elm Grove Companies  

 

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