New Hampshire’s housing market has transformed dramatically in recent years, especially for the state’s highest earners. Households making $500,000 or more per year – a tiny elite segment (the median household income is around $97,000) – have been active and influential in the 2018–2023 real estate boom.
These affluent buyers are purchasing properties from spacious country estates to chic city condominiums. Many are upsizing to luxury homes, while others are downsizing or buying second homes in scenic spots. They tend to have flexibility in financing, often paying cash or using jumbo mortgages.
Types of Homes Purchased by High-Income Buyers
Large Single-Family Homes
High earners often buy expansive single-family houses with premium features – homes with acreage, waterfront access, mountain views, or extensive amenities. What used to be a rarity – a home priced over $1 million – is now much more common. In 2019, only 301 homes in New Hampshire sold for over $1 million, but by 2024 that number nearly tripled to 994 homes.
These luxury properties include historic estates, modern mansions, and custom-built homes with high-end finishes. One such property listed in Dunbarton features a horse barn, indoor riding arena, and even an indoor movie theater, priced at $1.6 million – the kind of unique luxury home that high-income buyers have been snapping up.
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Condominiums and Townhouses
Some affluent buyers opt for upscale condos or townhomes, especially in downtown areas like Portsmouth or near vacation hubs. Luxury condos offer a maintenance-free lifestyle with high-end interior design, parking garages, and walkable access to shops and restaurants.
In Portsmouth’s redeveloped North Mill Pond area, new high-end condos have come on the market with one-bedroom units starting around $885,000. These pricier condominiums cater to buyers who want comfort and convenience rather than large land parcels.
High-income empty nesters often choose to downsize from big suburban houses into luxury condos or townhouses that still offer plenty of space and top-tier amenities. A 65-year-old demographic of buyers in New Hampshire is now purchasing single-family homes or townhomes in walkable communities after selling their previous large homes.
Second Homes and Vacation Properties
A significant portion of $500K+ earners purchase second homes in New Hampshire. These can be lakefront houses, ski chalets, or mountain cabins used for weekend getaways, vacations, or future retirement retreats.
About 10.4% of all housing units in New Hampshire are seasonal homes. In popular vacation counties, the concentration is even higher: roughly 41% of homes in Carroll County (which includes Lake Winnipesaukee towns) are second homes.
Ultra-luxury vacation homes have seen a boom: historically, only a handful of New Hampshire sales topped $5 million each year, but by the period from August 2022 to July 2023 there were 30 sales over $5 million – an explosion of ultra-high-end home purchases. Many of those were spectacular lakefront estates on Lake Winnipesaukee or oceanfront mansions on the Seacoast. For instance, an oceanfront home in Rye sold for $18.5 million (one of the highest prices ever in the state).
Investment Properties
While the focus is on owner-occupied homes, some high-income households also buy investment real estate. This could include multi-family apartment buildings, duplexes, or portfolios of rental homes.
Some younger high earners even skip buying a primary home at first, and purchase a rental or vacation home instead – a trend noted in the late 2010s. The average age of vacation-home buyers nationwide dropped to 43 by 2019 (from age 61 in 2003), as some affluent millennials chose to rent in the city and buy a vacation/investment property in the country.
Upsizing, Downsizing, or Second Homes?
Upsizing to Dream Homes
For high-income families in their prime earning years (late 30s to 50s), upsizing is common. As their incomes grew in the late 2010s, many moved from starter homes or mid-range houses into larger homes with more space and amenities.
Between 2018 and 2023, New Hampshire saw a surge in move-up buyers purchasing high-end homes. With overall home prices climbing (the statewide median sale price jumped from about $300,000 in 2019 to $470,000 in 2023), even moving to a “bigger” home often meant entering the $500k+ price tier.
High earners frequently bought properties with 4+ bedrooms, bonus rooms for home offices, and expansive lots. This upsizing trend was facilitated by low interest rates through 2021. Many such buyers were prior homeowners leveraging equity: they sold their previous homes at a profit and rolled that equity into a bigger, more expensive house.
Downsizing with a Twist
Older wealthy residents often consider downsizing. After children move out, a 5,000 sq. ft. house might feel too large. From 2018 to 2023, there indeed were high-income downsizers, but interestingly they didn’t all shift into tiny condos or retirement communities.
Instead, many chose to “right-size” into slightly smaller single-family homes or upscale condos while staying in New Hampshire. Realtors observed something new: retirees or near-retirees in their 60s competing with first-time buyers for moderate-sized homes.
High-income seniors often want to stay in NH (near friends, family, or favorite recreation) but there is a shortage of smaller, single-level homes. So they end up buying the limited supply of mid-sized houses, sometimes outbidding younger folks by paying cash.
Some affluent downsizers do choose luxurious condos, especially in downtown Portsmouth, Manchester, or Hanover, where they can walk to restaurants and cultural attractions. Downsizing for the rich doesn’t necessarily mean cheap or minimal – it means maintaining a luxury lifestyle with less maintenance.
Second Homes as a Major Trend
Perhaps the biggest story of 2018–2023 is the boom in second home purchases among the wealthy. Rather than selling one home to buy another, many $500k+ earners are keeping their primary residence and buying an additional property.
New Hampshire became a magnet for second-home buyers during the COVID-19 pandemic. Starting in 2020, more people were able to work remotely and wanted a refuge away from cities. High-income professionals from places like Boston, New York, and beyond looked to New Hampshire’s lakes, mountains, and quaint towns as ideal places to own a vacation home.
U.S. vacation home sales jumped 57% year-over-year in early 2021. Local realtors described an “awakening” to New Hampshire as a luxury second-home destination.
Beyond natural beauty, New Hampshire has tax advantages (no state income tax or sales tax) that appealed to high earners. Plus, it’s within easy driving distance of major metropolitan areas. As a result, wealthy out-of-state buyers flooded popular vacation regions.
Where Are High-Income Buyers Purchasing?
Lakes Region (Central NH)
The Lakes Region, especially around Lake Winnipesaukee, has become one of the prime targets for high-income buyers. From 2021 to 2023, luxury transactions around the big lakes tripled as more buyers “caught on” to the region’s appeal.
Towns such as Wolfeboro, Meredith, Center Harbor, Moultonborough, and Alton offer waterfront mansions, private docks, and sweeping views. Many of the state’s most expensive home sales have been on Winnipesaukee. In just the 12-month period ending mid-2023, there were 30 sales over $5 million statewide – and most of those were lakefront properties on Winnipesaukee.
Homes which are not directly on the lake but near it, or with lake access rights, are now regularly selling above $1 million – something that was unheard of in the past for non-waterfront homes. The Lakes Region has become New England’s playground for the affluent, comparable to parts of coastal Maine or Cape Cod in desirability.
Seacoast (Southeastern NH)
New Hampshire has only 18 miles of Atlantic coastline, but it packs a punch. The Seacoast area – including towns like Portsmouth, Rye, Hampton, North Hampton, and New Castle – has long been one of the wealthier parts of the state.
Portsmouth, a vibrant historic port city, attracts affluent buyers who enjoy its restaurants, arts, and walkable downtown. Luxury condos and restored historic homes in Portsmouth’s downtown can command high prices (often $1 million and up).
Meanwhile, just north and south of Portsmouth lie beach towns like Rye and North Hampton where oceanfront estates draw extremely high prices. In 2022, a Rye beachfront home sold for $18.5 million, marking one of the highest sales on record for New Hampshire.
The coastal allure combined with New Hampshire’s tax benefits makes this area especially attractive to people moving from high-cost states. The Seacoast also offers high-end condos and townhomes which appeal to downsizers and those who want a turn-key second home near the beach.
Southern New Hampshire (Border with MA)
The southern tier of NH – towns such as Bedford, Hollis, Windham, Amherst, Salem, and Exeter – has traditionally been popular with affluent professionals, particularly those who commute to high-paying jobs in the Boston area.
Many high earners who work in Greater Boston choose to live in New Hampshire’s southern suburbs for more house and land for the money (and to benefit from NH’s lack of income tax). For example, Bedford (near Manchester) is known for its upscale subdivisions and excellent schools, drawing doctors, lawyers, and business owners.
New Hampshire has seen significant migration from Massachusetts in recent years: in 2021–2022, about 44% of new residents moving into NH came from Massachusetts. Many of those newcomers have high incomes and they often settle in the southern commuter belt.
Other Notable Areas
Though not as talked-about, areas like Greater Concord (Merrimack County) and the Upper Valley (around Hanover and Lebanon) also saw increased activity from wealthy buyers. Merrimack County’s million-dollar home sales more than tripled from 16 in 2019 to 56 in 2024.
In the Upper Valley, Hanover (home to Dartmouth College) and nearby Norwich, VT, have long been high-income pockets due to the college and medical center. Households earning $500k have been purchasing both grand old houses in Hanover and newly built modern homes with views of the Connecticut River valley.
Northern New Hampshire’s ski country (towns like Lincoln, Conway, Bretton Woods area, Jackson) also saw growth in second-home buying. In Conway (near popular Mount Washington Valley ski resorts), the median single-family home price hit over $437,000 by 2024. One realtor in Conway noted that “local people are pretty much priced out of the market” because most of the buyers are wealthier outsiders, and “Most of the buyers… are paying cash”.
Financing Trends: Cash vs. Mortgage
All-Cash Purchases
A large share of wealthy buyers do not rely on mortgages at all; they pay cash. Statewide in New Hampshire, real estate professionals observed that many buyers were doing so with cash in hand, allowing them to close deals quickly and beat out buyers who needed financing.
In vacation/resort areas, cash offers were especially prevalent. Nationally, during the first part of 2021 (peak of the second-home boom), 53% of vacation home purchases were all-cash – more than double the cash share for primary home sales.
By late 2022 and 2023, as interest rates rose sharply, cash became king in the luxury market. By the end of 2023 nearly 46.5% of high-end home purchases were cash (nationwide data) – a record-high portion.
This gave wealthy buyers a huge advantage because sellers prefer the certainty of cash deals. Real estate agents in NH have frankly said that average-income and even middle-upper-income families have been “shut out” of buying, because houses are “being gobbled up almost exclusively by high-income earners… and these buyers often rely on cash”.
Jumbo Loans
When high-income buyers did finance a purchase, they often used jumbo mortgages (loans exceeding the standard conforming limits, around $726,200 for a single-family home as of 2023).
From 2018–2021, jumbo loans were relatively affordable because interest rates were historically low. In fact, 2021 was a banner year for jumbo loan originations, with the largest volume of jumbo loans issued since 2005. Wealthy buyers took advantage of favorable rates – often in the 3%–4% range – to borrow large sums.
However, things shifted in 2022 and 2023 when interest rates climbed rapidly. As borrowing became more expensive, the relative advantage of paying cash increased.
Those who did use jumbo loans often made large down payments to reduce the loan size. NAR reported that 77% of vacation home buyers put at least 20% down, compared to about 49% of all buyers.
Who Are These $500K+ Earners?
Age and Life Stage
Many high-income homebuyers are in their 40s, 50s, or early 60s. This tends to be the peak earning period for professionals. The typical repeat homebuyer nationally in recent years has been around 56–61 years old.
There is also a segment of younger high earners, such as technology workers or finance professionals in their 30s, especially those moving from big cities. But they are fewer – anecdotally, New Hampshire’s luxury market leans older than places like Silicon Valley.
The trend of 60-somethings buying single-family homes shows that even those at retirement age are active in the market. On the other hand, the emergence of 30- and 40-something millionaires buying second homes has brought the average age of vacation-home buyers down to early 40s nationally.
Household Composition
The majority of these buyers are married couples, often with children (or grown children). Dual-income couples can much more easily hit the $500k income mark. According to national stats, 70% or more of high-end homebuyers are married.
Families with kids have been a significant part of the demand for large suburban homes in NH’s good school districts. Meanwhile, childless couples (whether younger or empty nesters) are common among condo purchasers and second-home owners.
One interesting dynamic noted by realtors is that different demographics ended up competing for the same homes in the tight market. For example, an older couple downsizing and a young family upsizing might both bid on the same 3-bedroom house – and either could be high-income.
Occupations and Background
New Hampshire’s high earners typically include: senior executives, doctors and surgeons (especially with two-doctor households), successful lawyers, owners of prosperous small businesses, finance and tech industry high-flyers, and people with inherited wealth or substantial investment income.
New Hampshire’s tax environment has attracted quite a few entrepreneurs and retirees with wealth – remember, NH has no income tax on wages and is phasing out taxes on investment income.
The influx of remote workers during the pandemic also brought some unconventional high earners – for instance, a Silicon Valley tech employee making a Bay Area salary but choosing to live near New Hampshire’s mountains for the lifestyle.
Additionally, a portion of the high-end market has been driven by out-of-state investors or second-home buyers whose primary income isn’t local.
Generational Wealth
Another factor is that some home purchases by this group are facilitated by wealth transfers or inheritance. A younger family might afford a pricey home thanks to help from wealthy parents. Or a property might be bought under a family trust.
Access to generational wealth was explicitly cited as a reason some people could keep buying in New Hampshire’s frenzied market. In a sense, it’s not just current income but also accumulated wealth that defines these buyers.
2018–2023 vs. 2008–2017: A Market Transformed
From Recovery to Boom
The 2008–2012 period encompassed the housing market crash and Great Recession. New Hampshire was not immune: home prices fell from their mid-2000s highs, sales slowed, and even high-income buyers pulled back due to economic uncertainty.
For several years, New Hampshire’s upper-end real estate market was soft. By around 2013–2014, the market started recovering. But compared to the explosion of the late 2010s/early 2020s, that earlier recovery was modest and gradual.
The median NH home price in 2014 was about $228,000, and by 2017 it had risen but was still in the $250Ks range. Contrast that with $470,000 by 2023 – an enormous jump.
The luxury segment remained a small niche through most of the 2010s. Million-dollar sales were infrequent and seen as exceptional. Susan Cole, the 2024 NH Realtors president, reminisced that years ago, homes over $1M were “very rare” and notable when one sold.
Inventory and Affordability Changes
During 2008–2017, inventory was relatively abundant in many areas. High earners looking then had more choices and could take time. In contrast, 2018–2023 was a time of inventory shortage.
Few new homes were being built relative to demand, and those that were built often catered to the high end (because builders could make more profit per unit).
Think of what a “luxury home” meant in 2010 versus 2023. In 2010, a $500,000 house in NH was considered fairly expensive and likely quite large or on a lake. Back in 2007, only 7% of NH homes were valued over $500,000.
By 2023, a $500,000 price was roughly the median for a single-family home. That means around 50% of homes were selling above that! What was once luxury pricing became “normal” pricing.
In 2018, the housing affordability index in NH was 129 (meaning the median income was 129% of what’s needed for a median house); by 2023 it plummeted to 65. The index dropped even further to 59 by the end of 2024, signifying that an average family had only 59% of the income needed for an average home.
The Out-of-State Buyer Influx
New Hampshire has always seen some out-of-state homebuyers, but the scale increased post-2018. In 2008–2017, the majority of home purchases, especially primary residences, were by New Hampshire residents.
By 2020–2023, outsiders were a dominant force even in general market sales. Remote work and pandemic-driven relocation were big differences that the previous decade didn’t have. By 2021–2022, people from all over the country were moving in – NH was ranked #15 in the nation for net migration gains.
The massive inflow of wealthier migrants after 2020 is a feature that sets the 2018–2023 era apart.
Second Home Market Explosion
In the late 2000s and early 2010s, the second home market in NH cooled significantly because of the recession. Some vacation homes even went into foreclosure after 2008.
Now compare that to 2020–2023, where we saw a second-home feeding frenzy. Vacation home counties had double the sales growth of other areas during the pandemic boom.
This is an unprecedented scenario; historically, second home markets lag in recoveries and don’t lead frenzied price hikes – but this time they led. For New Hampshire, that meant places that were once affordable getaways became pricey and scarce.
Conclusion
The 2018–2023 period has seen New Hampshire’s housing market transform dramatically, largely driven by affluent buyers with incomes over $500,000. These wealthy purchasers have bought everything from sprawling estates to luxury condos, with a particular focus on vacation properties in the Lakes Region and Seacoast.
Rather than following one pattern, high-income households have variously upsized, right-sized, or added second homes to their portfolios. Most notably, they’ve increasingly paid cash, giving them a decisive edge in competitive bidding situations.
By 2023, what was once considered “luxury” housing had become mainstream pricing in many New Hampshire communities. The state has firmly entered an era of “luxury normalization” – and the presence of $500k+ earners in the market is a primary driver of this shift.
References
- Who is buying all the homes in New Hampshire? – NH Business Review
- Hot market? Million dollar home sales are far more common in NH – New Hampshire Public Radio
- New Hampshire Is An Under-The-Radar Luxury Second-Home Destination – Inman
- Luxury Home Prices Hit All-Time High As Record Share of High-End Buyers Pay Cash – Redfin News
- Vacation Home Sales Surges During Pandemic – NAR Economists’ Outlook blog
- Second Home Market in The Lakes Region – Roche Realty Group
- Rich millennials opt for vacation properties over starter homes – O’Brien Legal Services LLC
- New Hampshire avoids a ‘jumbo’ problem – NH Business Review
- Through the roof: A NH house tops half a million dollars in 2024 – NH Business Review
- $18.5M Rye home: Straws Point now boasts top 2 highest-priced sale – AOL
- 2023 stats paint stark picture of NH real estate affordability – NH Business Review
- The Allure of Luxury – Scotsman Guide
- First-Time Home Buyers Shrink to Historic Low of 24% as Buyer Age Hits Record High – NAR Newsroom
