Housing Supply Tight, Prices High, Choices Limited, Report Finds

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Housing continues to be a challenge across Connecticut, with a new report outlining data that reveals a tight supply, high prices and limited choices for individuals and families looking to live and work in the state. The HousingInCT2012 report, by Partnership for Strong Communities, highlighted the following:

  • Despite a housing downturn that pushed median sales prices 19% below their 2007 peak, Connecticut residents struggled with a housing supply problem that kept prices among the highest in the nation.
  • Connecticut's housing production fell to 50th among the 50 states in 2011 and for the 2002-2011 decade. As a result, the extremely modest demand for homes still left the state with the 8th highest median sales price in the nation.
  • The number of communities with affordable housing fell. While the state’s median home sales price declined to $240,000 from a 2007 peak of $295,000, cities and towns where 10% or more of the housing stock was affordable dropped to 29 of 169, from 31.
  • Renters -- now 33% of all Connecticut households, up from 30% just two years ago -- suffered most from the dearth of supply.  Connecticut remained 33,000 units short of the number of affordable rental homes needed and, even more telling, 82,000 units short of the number that were both affordable and available, according to the Census.
  • 26% of Connecticut's 436,000 renting households earn less than 50% of the median income and spend half of that meager income on housing; 51% of all renters spend more than 30% of their incomes on housing.

The report also noted that Connecticut grew older, jumping to 9th in 65-plus population, while young workers with average education debt of about $25,000 and older workers and retirees – half or more with less than $25,000 in savings – fueled demand for smaller, denser, affordable and energy-efficient homes.

The Partnership publishes HousingInCT annually to provide the public with a snapshot of our state’s housing market and needs, using current data and research.