Last Updated: August 14, 2022

Rentals and Residential Sales in Connecticut

Written By: Barbara L. Pearce
Apartment Building

Last week, a new survey came out that listed the tightest residential rental markets in the country. Connecticut had three in the top 11--Bridgeport and New Haven were both in the top 5, and Hartford was number 11. That's of course great news for investment real estate owners, but it's also good for homeowners who are thinking of selling.

Greater New Haven

When people are moving into Greater New Haven, they are often coming to a school or university, and many will choose to rent, not knowing whether or not they will be long-term residents. Even if they plan to stay for years, they often would choose to rent first, so that they can get a feel for where they want to settle. When they realize how hard--and how expensive--it is to rent a house or apartment in our area, they very frequently decide to consider buying. It stands to reason that a place where prices are lower than in many other regions, but whose rental rates are higher, is a good place to buy. In other words, high rental costs make housing prices look better, especially at low interest rates.

Suburbs

This is particularly the case in many of our suburbs, since families with children in school may prefer suburban life. Those towns, where even zoning laws make it hard to build rental housing, offer few choices for those who want to rent. Therefore, there is an even higher push to buy in those places, even for those seeking academic year rentals. Plus, when supply is short, the chance that demand will stay strong, if they want to move in a few years, is more likely. That helps the equation tilt toward purchase over rental choice. It also may make the fall market busier, as those who could not find anything but short-term rentals decide to buy sooner.

It's been a long time since both rentals and sales have been so strong, so those of us in the business are enjoying it! Everyone else should as well, because it bodes well for the economy of our region and for Connecticut as a whole.

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