Rochester Housing Update: Prices Ease, Rents Climb, 24 Townhomes Proposed

Rochester, NH – March 8, 2026 – Home prices cooled year-over-year in January while rents rose. A 24-unit townhome proposal adds new supply.

Top takeaways

  • Median sale price was $374,900 in January, down 10.3% year-over-year.
  • Homes averaged 42 days on market; 23 sales closed in January.
  • Average apartment rent reached $2,007, up 6.6% from a year ago.
  • A 24-unit townhome project is under city review.

Market snapshot

The housing market showed signs of cooling at the start of 2026. In January, the median sale price was $374,900, a 10.3% decline from a year earlier. Homes took an average of 42 days to sell, and 23 transactions closed during the month.

While conditions have eased compared with last year’s pace, broker overviews continue to characterize the market as relatively competitive, with sellers maintaining leverage in many transactions. Inventory has fluctuated month to month, contributing to shifts in days on market and pricing.

Zillow’s latest available data, reflecting late 2025 trends, placed typical home values near $389,000 at that time, indicating modest annual appreciation before the recent year-over-year dip. Together, the data points suggest demand remains present even as price pressure moderates.

Rentals and affordability

Rental costs continue to move higher. The average apartment rent stands at $2,007, up 6.6% from a year ago. One-bedroom units average about $1,602, while two-bedrooms are near $2,052.

Rising rents may influence some households’ decisions between renting and buying, particularly as mortgage-rate conditions remain a consideration. For others, higher borrowing costs could delay entry into the for-sale market, sustaining rental demand.

Development watch

A 24-unit townhome proposal is under city review following a February 4, 2026 request for proposals. Planning documents reference three-story buildings with units of roughly 1,600 square feet each.

If approved, the market-rate development would add incremental supply during 2026. New construction at this scale would not dramatically shift overall inventory, but it would provide additional options for buyers seeking attached housing.

What’s for sale

Active listings span a broad range, from condos and smaller single-family homes under $300,000 to properties priced above $600,000. As days on market trend higher than last year, buyers are paying closer attention to pricing strategies and reductions.

Sources

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