CT Voters Say Affordability Tops Governor's Race As Zillow Warns Housing Supply Is Falling Behind

As Connecticut voters prepare to cast their ballots in this year's elections, one issue continues to be at the top of their minds: affordability.

A new Sacred Heart University poll found that nearly 30 percent of registered voters identified cost of living and inflation as the single most important issue in deciding their vote for governor. Much of that concern centers on housing costs.

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The survey found that 59 percent of voters said they are struggling to maintain their current standard of living while nearly three-quarters reported higher housing costs over the last year.

That concern mirrors what Zillow Chief Economist Orphe Divounguy said he sees throughout Connecticut's housing market.

Hartford recently ranked as Zillow's hottest housing market in the country, with the company citing rapid home value appreciation, strong rent growth and continued demand fueled by the city's proximity to Boston and New York.

"It's really a lack of supply. We really need more housing, more homes in the region," Divounguy said.

Hartford has about 65 percent fewer homes for sale than before the pandemic, limiting options for buyers while continuing to push home prices and rents higher, according to Divounguy.

But Divounguy believes Connecticut has failed to build enough housing to keep up with demand.

"The combination of those factors is causing chronic price pressures," he said.

According to Divounguy, restrictive land-use policies, lengthy permitting processes, minimum parking requirements and limits on higher-density housing all make it more difficult for builders to add homes in Connecticut.

"The easiest, I think, the lowest-hanging fruit is to look at land-use restrictions," he said, adding that lawmakers could alleviate housing pressure by allowing more townhomes, condominiums and other higher-density housing could help improve affordability.

The Sacred Heart poll found housing affordability has become one of the few issues with broad bipartisan agreement. About 70 percent of Democrats and nearly 69 percent of Republicans said housing costs will be among the most important issues influencing their vote for governor.

Divounguy said affordability challenges extend beyond homebuyers.

According to U.S. Census data, half of households in the region spend more than 30 percent of their income on rent, and one in four spends more than half of their income on housing.

Zillow's own renter surveys also show many tenants are delaying moves because they cannot afford today's higher asking rents.

Looking ahead, Divounguy said he is optimistic that growing attention from policymakers and efforts to increase transparency in the housing market could help ease some pressure. But ultimately, he said, increasing the housing supply will be essential.

"We just need more housing, more construction in the region," he said.