Builders Patch | HousingCount: Connecticut affordable housing data and latest news

Connecticut

Summary

Connecticut state is facing an acute affordable housing crisis. For every 100 low-income renter households, there are 53 units available that are affordable to them. The median rent in the state has risen by 30% since 2010, while median household incomes have grown by 27%. Currently, the state is short over 58,104 low-income housing units, meaning rental units that are affordable to households earning ≤60% of AMI.

33.8% share of renter households
41.3% share of low-income households
48.2% share of rent-burdened households

Renter population data

Renters vs homeowners

Households % share
Renter households 471,821
Homeowner households 925,503
Total households 1,397,324

Low-income renter households

Renter households by income group Households % share
Extremely low-income ≤30% AMI 70,591 15.0%
Very low-income 31-50% AMI 53,875 11.4%
Low-income 51-80% AMI 70,338 14.9%
All low-income households <80% AMI 194,804 41.3%

Rent-burdened households

Share of income spent on rent Households % share
Moderately rent-burdened 109,546 23.2%
30.0–34.9% 40,098 8.5%
35.0–39.9% 29,932 6.3%
40.0-49.9% 39,516 8.4%
Severely rent-burdened 117,994 25.0%
≥50.0% 117,994 25.0%
All rent-burdened households 227,540 48.2%

Affordable housing shortage

Rent vs median household income

Year Median household income Amount ($)
2010 35,157
2021 44,569
Increase (2010–2021) 26.8%

Median rent

Year Median rent Amount ($)
2010 821
2021 1,069
Increase (2010–2021) 30.2%

Affordable housing stock

Units Amount
Supply (current stock) 66,362
Demand (total units needed) 124,466
Shortage 58,104
Total shortage 58,104
Supply/demand ratio 53.3%

Finance institutions

Connecticut Housing Finance Authority

Connecticut Housing Finance Authority
999 West Street
Rocky Hill, CT 06067-4005

LIST OF loan programs

QAP document (Qualified Allocation Plan)

The QAP is a document that states, and a few local agencies, must develop in order to distribute federal Low Income Housing Tax Credits (LIHTCs), which can be awarded only to a building that fits the QAP’s priorities and criteria. Each QAP must spell out a housing finance agency’s (HFA’s) priorities and specify the criteria it will use to select projects competing for tax credits. The priorities must be appropriate to local conditions.


Housing news

Recent articles

  1. How Fed Rate Cuts Impact the Housing Market – Key Takeaways:

    • Lower Mortgage Rates: Fed rate cuts have already reduced the average 30-year mortgage rate, potentially easing the burden for homebuyers.
    • Home Sales: More homeowners might be encouraged to sell, assisting with housing market stagnation, though recovery will be gradual.
  2. Housing market won’t come ‘unstuck’ until 2026 – Economists predict future recovery hinges on a recession, attributing downturns to past demand, inflation, and mortgage rates.

  3. States With the Largest Homeless Populations – Recent statistics indicate a rise to approximately 653,000 homeless individuals in the U.S., marking a 12% increase since 2020.

  4. The homebuying affordability gap is widening – Only 63% of counties are affordable for median-income households now compared to 94% in 2019. Seemingly significant increases in home prices coupled with rising interest rates are critical factors.

  5. Homelessness among workers rising – An increase in employed individuals unable to afford housing exemplifies a growing issue, exacerbated by high rents.