Best Locations For Connecticut Real Estate Investment
People inside and outside the United States agree that Connecticut is the place to be. Full of history, great jobs and moderate housing prices, this small state is packed with opportunities for investors and residents alike. If you’re looking for the best places for Connecticut real estate investment, browse this list.
Connecticut Real Estate Investment Forecast
To understand the real estate market in Connecticut, housing inventory is key. During an average year, the state keeps about six months of inventory. During the past year, inventory has ranged from 1.5 to 2 months for most property types, extending a bit longer for luxury homes. Despite fewer homes available for sale, completed sales increased in 2021.
Lower inventory tends to drive up prices, and growth was strong for 2021. Statewide, selling prices increased by about 11%. The demand for new construction hasn’t been met, with supply chain disruptions and the industry’s decade-long labor shortage. Prices continue to grow, showing consistently positive gains for the past three years. As such, for 2022, Connecticut investment real estate may prove to be an excellent choice for fix and flip or rental properties.
Where to Invest in Connecticut Real Estate
It’s easy to find good places to invest in property in Connecticut. However, there are some locations that show the greatest potential. Here is a list of the best cities in Connecticut to invest in real estate.
Real Estate Loans in Connecticut
The city of New Haven is best known for being the site of Yale University, as well as being one of the oldest cities in the U.S. With a population of more than 130,000, New Haven is more than a college town. Property values are relatively modest — about $315,000 for the median, reflecting a 12% increase in the past year. The average rent in New Haven is nearly $2,000 per month, which is significantly higher than cities such as Hartford. The higher rent prices make the city ideal for investors looking for rental properties, but the strong growth could make fix and flip a great choice as well.
As the largest city in Connecticut, Bridgeport features a variety of advantages for real estate investors. As a major port, the city maintains a strong economy focused on the service sector. In the city, home values are lower than the rest of Fairfield County. Buying in Bridgeport costs about $300,000 as a median, compared to more than $500,000 for the county. With property value appreciation approaching 40% in three years, there’s a lot of potential for steady growth over time. Average rents are $1,300 per month, reflecting incremental increases over the past three years as well.
Investors looking for a community with great potential for rental incomes should start with Waterbury. With a median list price of about $200,000, Waterbury is about a third lower than most of the other cities on this list. Average rent approaching $1,100 per month shows how investing in the city can work well for investors. Steady growth indicates that the city’s real estate market is good for other property investments, as well. Considering your options? Check out Renovo’s loan programs.
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Norwich might be the perfect opportunity for investors looking in New London County. The city’s median home prices are a bit less than $200,000, which is around $85,000 lower than the county’s median. Despite the low prices, the city’s property values continue to grow, about 12% in the past year and 32% in the last three years. Rent prices average about $1,300 per month, which allows investors to get a better return on their investments.
If you’re looking for a great state for real estate investment that offers proximity to cities such as Boston or New York City without the high housing prices, Connecticut is an excellent choice. Buying to hold, fix and flip, or rent with a good return on your investment may be easier here, depending on the city you choose. Contact us for more information about Renovo Financial and how you can get started with real estate investment in Connecticut.
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