Connecticut Suburban Real Estate Market Is Still Hot

Connecticut is a great place to call home, but until recently a lot of people have chosen not to buy a home here because of high taxes, etc.

Connecticut was rated by 24/7 Wall Street last year as the fourth best state to live in – after Massachusetts, Colorado and New Jersey.  A few reasons why it ranked so well was because of its long average life expectancy, the number of residents with college degrees and median income.

However, Connecticut also had the second lowest per capita population growth over the last 10 years, according to U.S. Census figures. The Washington Post recently reported that Connecticut’s population only grew by 0.9 percent over the last decade. Per capita, Mississippi, at 0.2 percent, was the only state that grew less. States near Connecticut had population increases: Massachusetts at 7.4 percent; New Jersey, 5.7 percent; Rhode Island, 4.3 percent; and New York state, 4.2 percent.

However, things changed during the pandemic. The Wall Street Journal reported last July that there is “a glimmer of hope” now in the Connecticut market.

When everything was closed people started to look at “home” differently. Homes for sale that had a pool or central air become hot commodities. There were 38,641 single-family home sales in the state in 2020, a 16.6% jump from the prior year, according to the Warren Group, a real-estate research firm. That was the most Connecticut home sales since 2005.

Median sales prices also rose to $300,000 in 2020, a 15.4% increase from the prior year and the highest price on record in the state, The Wall Street Journal reported.

There are notable changes going on in places like southeastern CT. Where Electric Boat, shipyard in Groton, a major defense contractor is building two ships a year now. That has provided a big boost to the local real estate market as its employees seek local housing.