Big News for Housing in New Hampshire: More Flexibility, More Options

Big News for Housing in New Hampshire: More Flexibility, More Options

New Hampshire has taken another big step toward tackling its ongoing housing shortage. This summer, the state passed new legislation, most notably House Bill 577, which makes it easier for homeowners to add Accessory Dwelling Units (ADUs), sometimes known as in-law suites, carriage houses, or backyard cottages.

For years, state law allowed ADUs but left plenty of room for local restrictions. Many towns limited them to being attached to the main home, required extra lot size, or imposed complicated approval processes. The result? Few were actually built.

Here’s what’s new as of July 2025:

• Detached ADUs are now allowed by right in any area that permits single-family homes.
  
  

• Towns can no longer require larger lot sizes, extra frontage, or stricter parking rules just because an ADU is added.
  
  

• Homeowners won’t need a family member to live in the ADU, and the unit can be up to 950 square feet (or more, if the town allows).
  
  

• If a town’s zoning doesn’t specifically address ADUs, they’ll automatically be permitted with a standard building permit.
  
  

These changes come as New Hampshire faces record-low housing inventory and rising prices. The goal is to give property owners more flexibility, open doors for renters and multigenerational living, and help communities grow without changing their character.

While it won’t solve the housing crunch overnight, this new law offers a practical path forward—creating more options for homeowners and more places to call home across the Granite State.