MANCHESTER, N.H. (AP) – The big rise in housing prices in New Hampshire has squeezed lower-income residents so hard that some say something must be done.

The median price of a single-family home in the state last year was $208,000, the sixth highest in the nation. That average in 2000 was $138,000, which put the state 15th in the national ranking.

Since 1995, single-family homes prices have increased more than twice as fast as median income, according to Jane Law of the New Hampshire Housing Finance Authority.

Part of the problem is that in a state that relies heavily on property taxes, communities don’t want low- or moderate-income housing because they believe it will cost them more in services than they collect in taxes.

John Hoyt, director of the Concord Housing Authority, is looking for 40 acres in the city that could be developed for low- and moderate-income housing.

“Real estate agents immediately want to talk you out of it,” Hoyt told the New Hampshire Union Leader. “They say, “You aren’t going to get the city to go ahead with you, and it will take years.”‘

Hoyt said his agency helps to house numerous people with good jobs.

“I have state employees, city employees – the people who work at hospitals, supermarkets, on Main Street as clerks. They all have jobs in this town; they just can’t afford to live here,” he said.

The lack of affordable housing keeps rents in the state among the highest in the nation.

“I think it is really hard on young households who are scratching their heads and saying “Can I afford to live here?”‘ said Russ Thibeault, an economist who recently completed a report to the state housing authority.

Dave Juvet, vice president of the Business and Industry Association of New Hampshire, has said the need for affordable or “work force housing,” is one of the states top business issues. Juvet said the association is working with legislators to find solutions.

“One thing that needs to be explored is a state incentive to give communities the carrot to do it and if they still do not, they come along with a stick,” he said.

Jeff Taylor, a consultant and former director of the state planning office, said there are promising changes in scattered places around the state. In a recent study for the housing authority, he gave some examples.

– Amherst changed its zoning to allow small houses on smaller lots.

– Laconia changed its requirements for parking in the downtown to allow for more density.

– Exeter created mixed-use zoning districts to allow affordable housing among stores and businesses.

– Keene mandated a waiting period before older buildings can be torn down to see if they can be reused.

“The in-town projects are opening up the centers of our communities to accommodate some of the growth that is coming,” Taylor said. “Weve got 18,000 new people moving here a year. If everyone is going to build on acre lots, we are in trouble.”

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Information from: New Hampshire Union Leader, http://www.theunionleader.com

AP-ES-09-19-05 0809EDT