10 Pros and Cons of Living in Connecticut

New England calling your name? Consider Connecticut for your next move.?

Learn more about the CT housing market and its distinct pros and cons.?

Next stop, New England!?

Small in square miles but big in personality, the state of Connecticut is known for its stunning autumn foliage, quaint coastal villages, buttered-up lobster rolls, and out-of-this-world pizza. It’s also home to the country’s third-oldest institution of higher learning—Yale University.?

Despite these fantastic claims to fame, some folks living amidst the hustle and bustle of the New York Tri-State hardly give CT a passing glance. But if you’re getting serious about a move to suburbia, this underappreciated state offers some excellent real estate perks.?

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In addition to people looking to relocate or experience homeownership for the first time, Connecticut is also a hotbed for multifamily housing investors (more on that later!).?

Having closed thousands of deals over her career, loan officer Faye Berkowitz comes along as Everest explores the significant advantages (and subtle downsides) of the Constitution State.?

BUT FIRST—let’s take a look at the current CT housing forecast.??

A small price to pay for a piece of paradise

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First, the (sort of) bad news for homebuyers. Do a little research into the Connecticut real estate scene, and you’ll learn all about the state’s stubbornly low inventory, intense competition, persistent bidding wars, and all-around solid seller’s market as we forge onward through 2024.?

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You’ll also see that home prices are up 11.6% year-over-year with the average home value hovering just below $400,000 according to Zillow. As of this past April, there were about 5,482 for-sale homes, 2,875 new listings, and a reported 7 median days to ‘pending.’?

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In total, these stats may cast a gloomy shadow over the CT market. But for prospective homebuyers and investors, it’s important to look at the greater picture.?

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To start, folks coming from New York and New Jersey are hardly fazed by the situation up North. We’re used to this kind of fierce competition. Not to mention, the numbers really aren’t all that bad! For instance, take Connecticut’s median home sale price of $338,967 as of March 2024.?

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This stat still beats current median sale prices in nearby states like New York ($405,833), New Jersey ($434,302), Massachusetts ($537,967), and even Rhode Island ($401,000). Also, if you see some crazy numbers coming out of Connecticut, remember to keep them in perspective.?

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“Many of the hottest areas are in close proximity to New York City, such as Stamford and Greenwich,” notes Mrs. Berkowitz. “If you’re willing to look in the central part of the state, you’ll find communities that are just as charming with homes priced much more reasonably.”?

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With those fascinating figures out of the way, let’s talk about the real Connecticut story. What is it like to live there? Are there any downsides for people looking to settle in the country’s third-smallest state? This northeastern gem may have a few drawbacks, but don’t discount its picturesque charm, historical significance, and dynamic geographical offerings.?

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We also have some great news for multifamily investors willing to plant their money in CT.?

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10 Pros and Cons of Residing in Connecticut

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THE PROS

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Stunning natural scenery

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People looking for respite from city life take refuge in Connecticut’s diverse landscape. The state claims a portion of the Appalachian Trail and boasts everything from green rolling hills and hardwood forests to serene lakes and quaint coastal hideaways. This makes it a wonderful place to live if you love hiking, fishing, biking, camping, sailing, and other forms of outdoor recreation. Also, be sure to check out Connecticut’s amazing State Park system.?

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Proximity to major cities

“One of the greatest perks is that Connecticut is very close to New York City,” explains Mrs. Berkowitz. “This is a huge benefit for families looking to relocate or invest in CT real estate, as you can’t beat the proximity.” Many residents of the state are known to commute to Manhattan as well as other nearby metros like Boston and Providence, so job opportunities abound.

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Historic charm

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An original U.S. colony, Connecticut is steeped in all kinds of history and heritage—Early American, Native American, as well as maritime. Residents can spend weekends visiting the Mystic Seaport Museum or taking in the colonial-era buildings and landmarks of towns like Milford, Essex, and Wethersfield. The state is also prized for its historic lighthouses, Revolutionary War-era farmhouses, and charming inns.?

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Dining and culture

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Thin crust pizza. Hot lobster rolls. Homemade ice cream. Steamed hamburgers. If those mouthwatering staples aren’t enough, Connecticut is also known for its thriving restaurant scene. “Places like New Haven, Hartford, Ridgefield, and Norwalk offer an exciting range of culinary options,” says Mrs. Berkowitz. “People relocating from places like New York won’t miss out on the incredible restaurants they’re used to in the big city. Connecticut also has some surprisingly eclectic shops, galleries, and plenty of multicultural offerings.”?

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Four-season appeal?

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Winter, spring, summer, and fall, Connecticut residents enjoy the best of every season. This is a particular advantage for people who grew up in the Northeast and aren’t ready to retire down South just yet (think: weather-stable states like Florida and Texas). If you’re ready to make your move, prepare to take in the blossoming flowers, breezy beach days, stunning fall leaves, and picturesque snow that transforms CT year after year. Gorgeous!?

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BONUS: Best-kept investment secret?

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If you’re not in the market for a single-family home, consider other real estate possibilities in CT.?

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“It’s a great spot for investors since multifamily properties in Connecticut are very well priced,” says Mrs. Berkowitz. “When putting down the minimum required down payment (generally 25%), you can still come out with a monthly profit. It’s difficult to turn the same profit in hot neighborhoods in Brooklyn or Rockland County, as the minimum down payment for a multifamily investment property likely leaves you with a high mortgage payment in current conditions.”?

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THE CONS

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High cost of living

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No secret here—Connecticut is still expensive, relatively speaking. While you may be able to score a nice home at a price below the national median, some pockets of the state still have a very high cost of living. Mrs. Berkowitz explains, “For instance, New Haven is 11% more expensive than the national average, while Stamford is 28% higher. If you’re looking to escape the high living costs of New York and North Jersey, you’ll have to take your home search further upstate and away from the coast.”?

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Tough winters

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While many of us love experiencing all four seasons, places up north like Litchfield and Hartford get hit pretty hard in the winter! If you’re not used to digging out of multiple feet of snow to get to work, you may want to rethink a purchase in this part of New England. But don’t forget—just a couple of hours away along the coast, you’ll find much milder conditions.?

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High property taxes

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“Property taxes are worth mentioning,” says Mrs. Berkowitz. “Connecticut currently ranks the third-highest in the nation with an average effective tax rate of 2.16%. That’s almost double the national average.” This stat may be hard to swallow for prospective homeowners (except for those moving from #1 New Jersey!). This is all the more reason to work with an experienced loan officer to negotiate the absolute best terms for other aspects of the deal.?

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Dense population?

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As the fourth most densely populated state, Connecticut roads can be burdensome for commuters. Highway traffic is notoriously congested near major hubs like New York City and Boston. So, people working outside the home need to be patient and calculate such delays into their schedules. Still, this problem is mostly concentrated near the state’s big highways and thoroughfares. Rural and suburban residents need not worry.?

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Humid summers

Yes, the other seasons can also be extreme! Expect to pay more for your summertime energy costs, as the central and northern areas of Connecticut are known for their hot, sticky conditions. But once you get through July and August, it’s back to business as usual. If you can swing a vacation, consider taking a trip along the peaceful shores of the Long Island Sound.?

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So, is CT the ‘new haven’ for homebuyers?

Everest says: could be the case!?