Unlocking Greater Hartford’s Potential: The Critical Role of Housing in Economic Growth
/by David Griggs
Hartford’s future as a dynamic economic hub hinges on a critical element: housing. In a state where Connecticut boasts the nation’s most constrained housing supply—with a mere 7% vacancy rate compared to the national average of 11%—the Hartford region faces both a challenge and an opportunity.
A robust, diverse housing stock is essential not only to accommodate a growing workforce but also to attract businesses and spur sustainable job growth.
Recent research underscores the magnitude of Connecticut’s housing deficit. Estimates suggest that the state needs at least 110,000 additional units to meet current demand. This shortfall is even more stark when considering the most vulnerable households.
One approach focusing on lower-income households—those earning less than 30% of the area median income—indicates a need for about 136,000 units. The data paints a clear picture: without significant changes, the housing crisis could stifle the region’s economic progress.
The concept of fair share zoning, which has been gaining traction in legislative circles, could be a game-changer. Fair share zoning requires municipalities to plan and zone for a set number of housing units based on regional needs. By spreading the responsibility for housing development more equitably among towns, this approach aims to break down longstanding barriers to affordable, multi-family housing.
In states like New Jersey, California, and Washington, fair share policies have shown promise in increasing the housing supply. Greater Hartford stands to benefit from a similar strategy, enabling the region to better accommodate its growing workforce and diverse talent pool.
“For economic development and job growth, accessible housing is paramount. Companies considering relocation to or expansion in the Hartford region increasingly scrutinize local housing markets.”
For economic development and job growth, accessible housing is paramount. Companies considering relocation to or expansion in the Hartford region increasingly scrutinize local housing markets. They recognize that a stable, affordable housing supply not only attracts skilled workers but also enhances employee retention. Across our state, local leaders have already noted that the lack of significant housing inventory is a deterrent for prospective employers. Greater Hartford’s own economic vitality is similarly tied to its ability to provide housing options that meet the needs of workers at all income levels.
Efforts are already underway to integrate housing into broader economic development strategies. Mixed-use developments, transit-oriented projects, and adaptive reuse of underutilized office spaces are part of a long-term vision to create “live-work-play” environments. These initiatives not only create construction and renovation jobs but also catalyze investment in retail, services, and community amenities—further stimulating the local economy.
We’re encouraged by recent actions undertaken by state government to help meet these challenges. In his budget address on February 5th, Gov. Lamont announced plans to continue Connecticut’s commitment to $400 million in annual housing investments, focusing on workforce, affordable, and supportive housing.
He also highlighted a 70% increase in housing production since 2015 and the "Time to Own" program aiding 5,000+ first-time homebuyers. The state is maintaining an important focus on investing in dense multifamily developments close to downtowns and transportation hubs, which help promote walkability and reduce car dependence.
Addressing the housing shortage in Greater Hartford is not merely a matter of real estate policy—it is a critical economic imperative. By prioritizing innovative zoning reforms and investing in diverse housing solutions, the Hartford region can unlock new opportunities for job growth, bolster its economic competitiveness, and ensure a brighter, more inclusive future for all residents.
David Griggs is President and CEO of the MetroHartford Alliance. This was originally sent by the MetroHartford Alliance to member businesses.
