I don't know that Section 8 is tightening the housing supply.
Laconia has about the same number of residents as 1980, and what at least appears to me without a count to be a pretty broad expansion of housing units since that time.
It is true the city has a homeless problem.
And it cannot be simply stated an issue with drugs - both illegal and legal.
It also, as in many other areas, has too many that put wants before needs.
But from a purely cost vs surrounding services... there are areas in the city easy enough to reach the bypass and shopping in Gilford, or Gunstock if that is your destination.
Just not currently that many smaller homes for sale within the Laconia borders either.
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