New Haven Connecticut Homeownership and Household Formation By Steven Rivkin
T
he New Haven housing market is the second-largest in the state of Connecticut and the sixth-largest in New England. There are over a thousand people in New Haven, and its metro area consists of over a million people. Yale University is found in New Haven and greatly impacts the city. It offers the largest employment to people living in and thus improves people’s economy in the city. Students and people working in the university buy a home in the New Haven real estate, contributing to the growth of the haven real estate market. In Connecticut, New Haven is considered one of the best places because of its collegiate sports, museums, festivals, 56 Zagat- rated restaurants, and major concert events. This has attracted most people to live in the area, increasing homeownership demand and increasing home formation year after another. In October 2021, New Haven was ranked as the 60th best place to live on a list of 150 metropolitan areas. About 28 percent of New Haven residents are homeowners. The city has about 49,177 households. It has a median household income of over $68,000 a year, making it one of the richest cities in Connecticut. In 2018 and 2019, the population in New Haven decreased from 130,529 to 130,331 -a 0.152% decrease while the median house income grew by 2.63% to $42,222 between March 2022 and April of this year.
The inventory of homes for sale in New Haven has also increased at a rate of 2.3% while listing cost has increased by 20% more than in 2021. This year, the single-family home average price increased by 13% to 315,000 in Connecticut in March. Homeownership demand is increasing day by day, and the supply rate is decreasing each day. To keep an equal pace between demand and supply, more houses need to be constructed to sustain the market growth. Connecticut houses are selling faster because people are migrating from New York City to this state in search of a more suburban lifestyle. Others are looking for extra space in the area to spend more time at home. The median home listing price in new haven has increased by 7.2% in April 2022, which was $299k compared to last year’s listing price, which was $275k. The average number of days a home is spent in the market in new haven is 39 days which is less than the days a home was spent in the market last year. Some of the best neighborhoods in New Haven include Middlebury, Scholl District, Bethany, Downtown, Woodbridge school District, and Guilford. However, Bridgeport in Connecticut is one of the popular dangerous cities where there are 582 crime rates per 100,000 with a population of 150,000. Although the crime rate is higher than in other cities in New Haven, it cannot be ranked as high compared to crime in other cities outside New Haven.
New Haven home prices and the homeownership rate are expected to rise. Demand is still very high, which puts upward pressure on house prices. This means builders must increase their pace, which is not likely due to inflation. As long as the supply and demand sides remain imbalanced, we can count on prices to keep rising. JUNE 2022 | 133
