With its historic charm, walkable downtown, and proximity to both the mountains and the coast, Portsmouth, NH continues to stand out as one of the most desirable places to buy a home in New England. Whether you're relocating from out of state or searching for the perfect coastal town with strong investment potential, Portsmouth checks all the boxes. Here's a closer look at what makes this Seacoast city such a compelling place to put down roots—and why the market data backs it up.
A Market That Continues to Reward Homeowners
Despite national market fluctuations, Portsmouth has consistently shown strong demand and limited inventory, driving both property values and buyer interest. As of late 2025, the median sale price of a home in Portsmouth sits around $875,000—up roughly 4% year over year—while the median price per square foot has climbed to approximately $561, reflecting a 6% annual increase. Earlier in 2025, monthly median prices spiked even higher, with May seeing a median of $1.2 million driven by a surge in single-family closings.
Homes here move quickly. The average days on market hovers around 59, though downtown properties often sell in under 25 days. Bidding wars remain common, especially for single-family homes near the waterfront or within walking distance of Market Square. Inventory remains tight—up only about 3% year over year—which continues to give sellers leverage and signals long-term value appreciation for buyers who get in now.
Location, Lifestyle, and the "Live Here" Factor
Situated about 60 miles north of Boston and just under an hour south of Portland, Maine, Portsmouth offers the rare combination of small-town livability with easy access to two major metro areas. Interstate 95 runs right through the city, and the Amtrak Downeaster provides rail service connecting Portsmouth to both Boston's North Station and Portland.
But what really sets Portsmouth apart is the day-to-day lifestyle. The downtown core—anchored by Market Square—is packed with independent boutiques, James Beard-nominated restaurants, craft breweries, live theater at venues like The Music Hall, and a year-round calendar of community events. Portsmouth earned a Silver-level Walk Friendly Community designation, and the downtown area scores an 87 on Walk Score, making it one of the most pedestrian-friendly places in all of New Hampshire.
For families, the public school system is a major draw. Portsmouth schools carry an average rating of 8 out of 10 on GreatSchools, and the district features active Safe Routes to School programs that encourage walking and biking. With a population of roughly 23,000 residents and a median household income above $105,000, the community skews educated and professionally active—over 60% of residents hold a bachelor's degree or higher.
The New Hampshire Tax Advantage
One of the biggest draws for buyers relocating from neighboring states is New Hampshire's tax structure. The state levies no personal income tax on wages or salaries and charges zero sales tax. For buyers coming from Massachusetts—where the income tax rate sits at 5% (9% on short-term capital gains)—or Maine, which taxes income at rates up to 7.15%, the savings can be substantial.
The trade-off is property tax. New Hampshire relies heavily on property taxes to fund local services and schools, and the state's effective rate of about 1.46% ranks fourth highest nationally. Portsmouth's 2025 property tax rate is $11.51 per thousand dollars of assessed valuation. On a home assessed at $800,000, that works out to roughly $9,200 per year. It's not insignificant—but for many buyers, especially high earners, the elimination of income and sales tax more than offsets the property tax burden.
A Smart Investment, Not Just a Home
Many buyers are seeing Portsmouth as more than just a home base—it's a genuine wealth-building asset. Several factors make the investment case compelling. First, Portsmouth is a coastal city on a narrow strip of New Hampshire's 18-mile shoreline, which severely limits new construction. There simply isn't much land left to develop, and what does come to market commands a premium. Second, demand remains strong from both owner-occupants and the rental market. With nearly 48% of housing units occupied by renters and median rents around $1,778 per month, investment properties cash-flow well relative to comparable Seacoast markets.
The economic fundamentals reinforce the picture. Portsmouth's unemployment rate sits at roughly 1.1%—well below state and national averages—driven by a diverse local economy that includes healthcare, technology, defense (the Portsmouth Naval Shipyard is just across the river in Kittery, Maine), tourism, and professional services. Properties here have appreciated steadily, with home values climbing roughly 80% above pre-COVID levels, and the foreclosure rate is essentially zero.
Neighborhoods and What You'll Find
Portsmouth may be compact, but its neighborhoods each have a distinct personality and price range. Understanding the differences can help you target the right fit.
The South End is one of the most coveted areas in the city, with tree-lined streets of restored colonial and Federal-style homes, many dating to the 1700s and 1800s. Walkability to downtown is a major selling point, and prices reflect the demand—expect to pay a premium for historic character and location.
The West End has emerged as one of Portsmouth's most dynamic areas in recent years. New mixed-use developments, independent shops, and restaurants have brought fresh energy to the neighborhood while maintaining a more accessible price point than the South End. It's increasingly popular with younger buyers and professionals.
Waterfront properties along the Piscataqua River and near the coast command the highest prices in the city, with some listings reaching well into the multi-million dollar range. Views of the river, harbor, and the Memorial Bridge make these homes highly desirable for buyers with the budget to match.
Condos and townhomes downtown offer a lower-maintenance entry point into the Portsmouth market. These are particularly appealing for remote workers, downsizers, and investors looking for strong rental income. Downtown condos benefit from walkability to everything Portsmouth has to offer, with median prices typically more accessible than single-family homes.
Is Now the Right Time to Buy?
With any real estate purchase, timing matters—but in a supply-constrained market like Portsmouth, waiting often costs more than acting. Home prices have increased year over year for several consecutive years, inventory remains limited, and there are no signs of a significant correction on the horizon. Mortgage rates have fluctuated throughout 2025, but even at current levels, the long-term appreciation trajectory in Portsmouth has historically rewarded buyers who got in rather than those who waited on the sidelines.
The key is preparation. Get pre-approved before you start seriously looking, understand the neighborhoods, and work with an agent who knows the Seacoast market inside and out. Properties that are priced well and in desirable locations still attract multiple offers, so being ready to move decisively is essential.
Thinking about making Portsmouth your next home?
As local real estate experts, we’re here to help you explore your options, understand the market, and find a place that feels like home. Reach out today to start your home search with confidence.
