# 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 | 33.8%  |
| Homeowner households     | 925,503 | 66.2%  |
| Total households         | 1,397,324 | 100.0% |

#### 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

- [Federal Low-Income Housing Tax Credit (LIHTC) program](https://www.chfa.org/developers/tax-credit-program/lihtc/)
- [State Housing Tax Credit Contribution (HTCC) program](https://www.chfa.org/developers/tax-credit-program/htcc/)
- [Housing Developer Financing Products](https://www.chfa.org/developers/financing-products/)

### 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.

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### 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.

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