Connecticut Flunks in New Homebuilding and Affordability Rankings — Here's What It Means for Buyers
- Neil Caron
- May 1
- 2 min read
The latest Realtor.com® Housing Report Card reveals a sharp divide in how well states are tackling the U.S. housing crisis — and unfortunately, Connecticut earned a failing grade.
According to the report, states in the South and Midwest are leading the charge on homebuilding and affordability, with South Carolina topping the list as the only state to receive an "A." Meanwhile, Connecticut, along with several Northeast neighbors, landed at the bottom with an "F."
ReadySetLoan takes a closer look at what this means for Connecticut homebuyers and why this matters more than ever in 2025.
Why Did Connecticut Receive an "F"?
The Realtor.com® economic research team graded each state based on two major factors:
Affordability (how much of the median income is needed to afford a median-priced home)
Homebuilding Activity (measured by building permits per capita and pricing of new homes compared to existing homes)
Connecticut struggles on both fronts:
Home prices are significantly higher than what many residents can afford.
New home construction activity is sluggish, with not enough permits issued to meet future housing demand.
Strict zoning laws, land use restrictions, and slow permitting processes are major obstacles to growth.
Compared to more proactive states like South Carolina and Texas, Connecticut is falling behind in creating affordable housing opportunities.
A Closer Look at National Trends
South Carolina is outperforming the rest of the nation, with new homes costing 8.2% less than existing homes — a stark contrast to the national trend where new homes cost more.
Texas leads the nation in homebuilding, accounting for 15.3% of residential permits while having just 9.2% of the U.S. population.
Iowa ranks as one of the most affordable states, with a median list price just 4 times the local median salary.
In contrast, Connecticut, alongside New York, Massachusetts, and Rhode Island, struggles with high home prices and limited new construction, squeezing first-time buyers and long-time residents alike.
What's Holding Connecticut Back?
Industry experts point to excessive regulations, strict zoning policies, and a lengthy permitting process as major barriers. Without reforms, Connecticut risks continuing this cycle of low inventory and high home prices, pushing more residents to seek affordability elsewhere.
Neighboring states with fewer restrictions — like Delaware and Virginia — are managing to perform better, even with smaller land areas or fast-growing populations.
RSL Perspective: How Buyers Can Stay Ahead
At ReadySetLoan, we understand the unique challenges Connecticut homebuyers face. Even in a tough environment, there are still strategies to succeed:
🐷 Explore Down Payment Assistance – Programs are available that can make a big difference for first-time buyers.
🐷 Expand Your Search Radius – Some Connecticut towns may offer better value and more availability than high-demand areas.
🐷 Get Pre-Approved Early – Competitive markets move fast. Having your financing ready shows sellers you’re serious.
🐷 Work with Local Experts – Connecticut’s housing nuances require a guide who understands the regulations, neighborhoods, and market dynamics. ReadySetLoan is here to help you navigate the race to homeownership.
If you're ready to make your move, or just want a better understanding of today’s Connecticut housing market, reach out to ReadySetLoan today. We're your trusted resource for smart mortgage education and strategies.
🏡 Visit ReadySetLoan to start your homebuying journey with confidence!
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