Connecticut’s “Booming” Housing Market

Connecticut home values have climbed steadily since the emergence of Covid-19 in early 2020.

For over a decade, the state’s housing market has been recovering from the Great Recession and many were uncertain about the pandemic’s impact on this market.

Since early 2020, home values in Connecticut have risen each month at an increasing rate, from less than 1% per month in summer 2020 to nearly 2% per month in some areas in early 2021. The graph below shows monthly changes in home values in Connecticut from January 2020 to February 2021, using home value data from Zillow and the 5 CTs geographic categories—rural, urban core, urban periphery, suburban, and wealthy—a methodology developed by the former Population Center at the University of Connecticut.

As of February 2021, the rate at which Connecticut home values are increasing is 50-100% higher than the overall rate in the United States, depending on the geographic category. This difference may be attributed to high buyer demand combined with low supply from sellers.

While some Connecticut residents have benefitted from steadily increasing home values, others have struggled with mortgage costs or buying their first home. This disparity may further widen the homeownership gap in Connecticut for years to come.

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