Connecticut Real Estate Market Weekly Insights (6-16-25)

In this episode of Connecticut Real Estate Market Weekly Insights, we start with a detailed analysis of the multi-family housing market across Central Connecticut, focusing on Meriden, New Haven, Waterbury, New Britain, and Hartford. The discussion covers median sale prices—explaining why the median is a more reliable market indicator than the average—along with insights into Cumulative Days on Market versus standard DOM, and why CDOM offers a truer measure of market activity.

We also break down the Sales Price to Original List Price Ratio, helping listeners understand whether homes are selling at, above, or below initial list prices, and what that signals about competitiveness. Price per square foot is discussed as a tool to evaluate relative property value across different cities.

Meriden and Waterbury show more affordability, while New Haven and New Britain reflect stronger demand and quicker sales. New Britain’s four-unit properties especially stand out for being snapped up quickly, suggesting investor urgency.

Interest rates are down slightly this week, with 30-year fixed loans averaging 6.89%.

Next, we explore House Bill 5002, Connecticut’s pending legislation to address the housing crisis. The bill proposes zoning incentives, transit-focused development, reduced parking requirements, and expanded rental assistance, though it faces opposition due to concerns over local control and market interference. Lawmakers are expected to negotiate amendments ahead of Governor Lamont’s June 24 decision.

We then turn to regional trends showing that small towns are outperforming larger cities in 2025 sales growth, with places like North Canaan and Roxbury seeing double or even quintupled activity thanks to out-of-state demand and lower price points.

Housing permit activity is down 10% year-over-year, despite earlier gains. Connecticut now ranks 40th nationally in permit momentum, hindered by zoning resistance, rising costs, and construction delays. Experts say financial incentives won’t be enough without real zoning reform.

We also cover the redevelopment of New Haven’s Science Park, where long-vacant Winchester factory buildings are being demolished to make way for biotech and office spaces—a major step in reshaping Newhallville’s future.

On the national front, we highlight a 1% annual decline in U.S. asking rents, driven by a surge in supply, with Redfin noting sluggish apartment absorption and high vacancy rates. Zillow forecasts cooling rent inflation, while still acknowledging elevated CPI shelter numbers due to lease renewal effects.

Lastly, investor behavior is shifting. Small investors now dominate the market, and cash purchases are declining. Realtor.com reports that investor sales hit record highs in 2024, especially in affordable Midwest and Southern markets.

The Fannie Mae Home Purchase Sentiment Index rose to 73.5 in May, with more consumers feeling positive about buying and selling homes, signaling a potential stabilization in buyer and seller confidence across the country.

To close, listeners are encouraged to reach out if they plan to buy or sell a home in the coming months, and to tune in next Monday for the latest market updates.

If you’re interested in buying, selling, or renting real estate anywhere within the State of Connecticut, please visit our website to see how we can assist you!