Why is the cost of living in Connecticut so high?

The Harbor Landing apartment complex at 28-30 Southfield Ave., in Stamford, Connecticut, sold for $ 73 million.

Michael Cummo / Hearst Connecticut Media

While housing costs are calculated to be about 45 percent higher than the national average in Connecticut, Kilic said he believes that number is likely much higher given the current market.

“The real estate boom has been going on since the start of the pandemic, and I’m probably betting the cost index is higher than that,” he said. “I wouldn’t be surprised if it’s close to 50 or 60 percent now compared to the country as a whole.”

Because house prices are currently booming across the country, Kilic suggested that places like Connecticut that are in the New York City area have prices that are rising much faster than the rest of the country.

While Glascock called housing prices in the state “really pretty low,” he noted that taxes and utilities are what to consider when it comes to housing costs, including costs. construction restrictions on more affordable housing. However, there is another way to look at the cost of housing in the state, according to Glascock.

“If you look at house prices and [median household] incomes, you would see that high cost states tend to have high incomes, ”he said. “This is especially true at the local level.”

For renters and buyers, that of course means having an income that will allow them to find the home they want, Kilic said. However, tenants in some areas of Connecticut are seeing new construction that free up existing rentals and lower their costs.

“If you look at downtown New Haven, there were so many single family homes that were moved to apartments, two or three rental units in a single family home,” he said. “But in the last few years, there are some nice new constructions, luxury rentals. So instead of tackling one of these bigger apartments, you can go for one of those [single family homes] rather.”

For homebuyers, however, Kilic said the current housing market bubble makes it difficult to find homes at any cost, let alone affordable. Although for buyers and renters, Kilic suggested that affordable homes should be part of infrastructure planning.

“This bubble drives up house prices and then the affordability level drops dramatically for some people,” he said. “Forget about being a first-time homeowner – this American dream that we have is a challenge… To be able to solve this problem, it takes a few years of planning on low-rental housing. The federal government and the state government need to develop a plan and investments should be made as part of the infrastructure planning they are talking about now.

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