PORTSMOUTH, N.H. — Just across the Piscataqua River from downtown Portsmouth, one of the most consequential construction and modernization projects in northern New England is taking shape.
The U.S. Navy is investing billions of dollars in Portsmouth Naval Shipyard as part of a much larger effort to modernize the nation’s four public naval shipyards. The investment is reshaping the facility responsible for maintaining and modernizing nuclear-powered attack submarines — and reinforcing an employment center with a major economic footprint in New Hampshire.
For newcomers considering the Seacoast, Dover, Rochester and surrounding communities, the transformation is worth watching.
A $2.46 Billion Dry Dock Project
At the center of Portsmouth Naval Shipyard’s modernization is the expansion of its dry dock capabilities.
According to a September 2026 report from the U.S. Government Accountability Office, the Navy has requested total authorization of approximately $2.46 billion for construction of two new dry docks at Portsmouth Naval Shipyard. Construction began in 2021, and the Navy currently expects the dry docks to be completed by May 2029.
The project expands the existing Dry Dock 1 complex to provide the size, water and electrical infrastructure necessary to maintain Virginia-class submarines.
The scale of the construction is unusual even by military standards. Because the island shipyard has limited space, massive concrete sections used for the dry dock floor are being constructed roughly 200 miles away and transported to the shipyard by barge.
The investment represents only one component of a much larger Navy initiative.
Navy Shipyard Modernization Could Exceed $200 Billion
The Navy’s Shipyard Infrastructure Optimization Program, known as SIOP, is intended to modernize dry docks, facilities, equipment and industrial operations at the Navy’s four public shipyards.
The GAO reported in September 2026 that the overall effort could ultimately surpass $200 billion and take more than 50 additional years to execute based on its analysis of Navy plans. The GAO also raised concerns about cost estimates, oversight and the need for regular assessments as the program progresses.
Portsmouth is one of the places where that nationwide investment is already highly visible.
The dry dock expansion is designed to increase the shipyard’s ability to maintain, modernize and repair attack submarines and return them to the fleet.
More Major Construction Could Be Coming
The dry docks may not be the end of the investment.
In 2026, the Navy also solicited contractors for a major multiple-award construction program supporting heavy waterfront and industrial projects, primarily at Portsmouth Naval Shipyard and Norfolk Naval Shipyard.
Solicitation documents contemplated multiple contracts with a combined ceiling of up to $4 billion over five years, providing a mechanism for future construction, renovation and infrastructure projects. That $4 billion is a contracting ceiling shared across covered projects and locations, not a commitment to spend the entire amount at Portsmouth.
For the Seacoast construction and skilled-trades economy, however, the procurement underscores the scale and duration of the Navy’s broader modernization plans.
The Shipyard Is Already a Major New Hampshire Employer
Despite its name, Portsmouth Naval Shipyard is physically located in Kittery, Maine. Its workforce, however, stretches deeply into New Hampshire.
Historical economic-impact data show thousands of New Hampshire residents commuting to the shipyard from communities including Rochester, Dover, Portsmouth, Somersworth, Barrington, Farmington and Newmarket.
In 2023, for example, 3,135 civilian employees receiving shipyard pay lived in New Hampshire, accounting for more than $262 million in payroll. Rochester alone accounted for 529 workers, followed by Dover with 413 and Portsmouth with 231.
The shipyard’s regional importance continues today. The Seacoast Shipyard Association released its 2025 economic-impact report in September 2026, again highlighting the facility’s role in employment and economic activity throughout northern New England.
That makes Portsmouth Naval Shipyard more than a Maine employment center. It is also an important component of New Hampshire’s Seacoast and Strafford County economies.
Skilled Trades, Engineering and Technical Careers
For people relocating to New Hampshire in search of employment, the types of jobs associated with the shipyard are particularly notable.
Portsmouth Naval Shipyard lists career opportunities across skilled trades including electricians, machinists, welders, pipefitters, riggers, marine machinery mechanics, sheet-metal mechanics, shipfitters and industrial-equipment positions.
Engineering disciplines include mechanical, electrical, civil, nuclear, computer science, environmental, industrial, marine and welding engineering, among others. The shipyard also employs workers in security, health and safety, environmental protection and radiological monitoring.
The shipyard continues to recruit. Its official employment site lists hiring and apprentice information events in New Hampshire and the Portsmouth area during fall 2026.
What Shipyard Growth Could Mean for New Hampshire Homebuyers
For prospective residents, the shipyard’s modernization matters beyond employment.
Large employment centers influence where people choose to live, particularly when workers are willing to commute across state lines. Portsmouth Naval Shipyard draws employees from communities throughout southeastern New Hampshire, meaning its economic footprint extends well beyond Portsmouth itself.
That can make communities along major commuting corridors particularly relevant for relocating shipyard workers.
Portsmouth and the immediate Seacoast offer proximity to the shipyard along with downtown amenities and access to the coast, although housing costs can be considerably higher than in communities farther inland.
Dover combines access to the Seacoast with a sizable downtown, rail service and a well-established shipyard commuting population.
Rochester is farther from Portsmouth but has historically been home to one of New Hampshire’s largest concentrations of shipyard employees.
Somersworth, Barrington, Newmarket and surrounding communities also provide alternatives for workers seeking different combinations of commute, housing inventory and community character.
For homebuyers relocating specifically for shipyard employment, looking beyond Portsmouth can therefore substantially expand the housing search.
Growth Also Creates Housing Questions
Billions of dollars in federal infrastructure spending do not automatically translate into billions of dollars flowing directly into New Hampshire’s housing market. Nor does shipyard modernization guarantee that home prices will rise in any particular community.
But the combination of a large existing workforce, long-term federal investment, construction activity and continued demand for skilled workers can reinforce the shipyard’s role as a regional employment anchor.
That matters in a Seacoast housing market where available inventory and affordability already influence how far many workers commute.
New residents accepting jobs at the shipyard may ultimately find themselves choosing between higher-priced communities close to Portsmouth and more geographically dispersed housing options in Strafford and Rockingham counties.
A Long-Term Investment in the Seacoast Economy
The modernization underway at Portsmouth Naval Shipyard isn’t a short construction cycle.
The Navy’s national shipyard program is envisioned as a multidecade effort, while Portsmouth’s two new dry docks alone are currently expected to remain under construction until 2029.
The result is an unusual combination for the New Hampshire-Maine Seacoast: a centuries-old federal installation being rebuilt for the next generation of submarine maintenance.
For people considering a move to New Hampshire, particularly those working in engineering, construction, advanced manufacturing, skilled trades or defense-related industries, the billions being invested across the river are another reason to keep the Seacoast and southeastern New Hampshire on the relocation radar.
Bottom line for relocators: Portsmouth Naval Shipyard may technically sit in Maine, but its workforce and economic influence cross the Piscataqua River every day. As billions of dollars reshape the shipyard for future generations of Navy submarines, New Hampshire communities from Portsmouth to Dover and Rochester remain closely connected to that growth.