The historic town of Hanover is coveted for its scenic views of the Connecticut River and Upper Valley. Residents living here are next to the prestigious Dartmouth College and year-round recreation at the Appalachian Trail. The cost of living in Hanover, NH, is higher than the national average, with the price discrepancy most notable in housing costs. Here’s a deeper dive into costs when living in this town.
Housing: Rental Prices
The tight supply, increasing home prices, and buyer demand continue to drive up rental prices in Hanover. With few vacancies available, renters in Hanover must compete in a market skewed heavily in landlords’ favor. The price increases in the
Hanover/Lebanon market are the highest out of New Hampshire’s 10 counties, up 48%. An average two-bedroom unit has a median rent of $1,683.
However, there are steps being taken to help with rental demand. InvestNH has set aside $5 million for housing purposes which will help with low supply levels. In Hanover specifically, an ordinance to improve the quality of rentals is underway, which would open the opportunity for homeowners to rent via Airbnb and other services. Even so, the
region requires 10,000 more houses by 2030 to meet demand.
Housing: Home Purchase Price
The housing market presents many of the same obstacles as Hanover’s rental market. The
median list price for a home in Hanover is $1.275 million, a 27.5% increase compared to last year. Despite the challenges that rising interest rates and inflation present, homes are still selling over their original list price. Currently,
Hanover homes sell for 104.5% of their original list price, a 14.7% increase. Housing inventory is low but rising, up 100% from last year for a total of 2.2 months.
Hanover’s
housing costs are 123% higher than the national average. High housing prices will likely persist as the town has a track record for high
appreciation rates. With a decade appreciation rate of 77%, Hanover ranks in the top 50% for appreciation across the United States. This also makes it a higher-appreciating community in New Hampshire. Buyers searching for someplace to live should prepare for stiff competition and work with a professional to secure a good deal.
Utilities Cost
Hanover’s
utilities are 14% higher than the national average. The typical electric bill costs $215.09, which is 25% higher than the national average of $170.84. However, phone costs are about 2% lower compared to the rest of the country. The average phone bill costs $183.36 in Hanover, while the national average is $187.18.
Hanover charges its residents for water and sewage services jointly. The cost per 1,000 cubic feet of water costs residents $42.33. Residents also pay a quarterly base charge ranging from $72 up to $718, depending on meter size. This equates to an average
annual water fee of $669.
Food Cost
When determining the cost of living in Hanover, NH, the
cost of food is only slightly above the national average. The average adult spends $3,679 a year on food, about $400 more than the national average of $3,240. Hanover rates are also a little higher compared to state rates, with the average New Hampshire resident spending $3,452 on groceries. The typical family of four can expect food costs to total $10,625 compared to the US average of $9,354.
Staples like
milk and potatoes rank higher than the national average, with these items costing $2.62 and $4.07, respectively. Other staples like ground beef are below the country’s average prices at $4.00. Overall, the cost of groceries ranks 4% higher than in other towns across the U.S.
Transit Cost
Relatively low transit costs in this town make the cost of living in Hanover, NH, manageable for commuters and long-time residents. A
gallon of gas averages $3.53 with a range between $3.00 and $3.75. Over half of the town’s residents
commute to work alone and have an average travel time of 17 minutes.
Hanover has several
public transportation options available to the community. Advance Transit offers free routes for community members traveling within the area. Residents can also use the Connecticut River Transit Inc and the Dartmouth Coach to travel across New Hampshire and into neighboring states. Even so, the percentage of people
using public transportation in Hanover is small at only 2.8%.
Average Salary
The
median household income in Hanover is $79,844, according to the latest census, marking a 27.1% decrease. The town’s biggest industries are its Education Services, Health Care & Social Assistance, and Professional, Scientific, & Technical Services. Employment rates are declining, down 3.81% from 3,250 employees to 3,130 employees.
Although the cost of living in Hanover, NH, may be high in sectors like housing, the town has
one of the highest median household incomes in the country. This helps counterbalance expensive living. The
base rate residents pay in property taxes is $16.14. The fee is split between the town, county, local school, and state education. Residents must also add on their Fire District rate to determine final property taxes.
Other taxes related to federal income, social security, and health insurance are close to national averages. Working adults in the area pay $5,333 a year in taxes, which is a little higher than the country average of $5,713. Not including federal taxes, residents in Hanover actually have a lower
average tax burden compared to other states.
Ready to find your next home?
The cost of living in
Hanover, NH real estate is mainly dominated by its extremely limited housing and rental market. With increasing demand and not enough supply, many residents who turn to rent as a housing alternative to homeownership must compete with high rates and few choices. A depleted housing market also results in high prices. Other costs related to food and transportation, as well as a high median income, cushion the pressure of housing costs. When you’re ready to make a move to Hanover, contact the experienced
Hanover real estate agents at Black House Real Estate for expert guidance.
Recommended Reading:
Exploring Dartmouth College's Rich History: From Founding to Present Day
