Connecticut

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Connecticuts Housing Situation
May 2006
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Affordable housing has been a problem forpeople
who are homeless or very poor.
Affordable housing is now an issue that affect
middle-income residents. It is now an an
economic growth issue, too.
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A shortage of affordable housing causes other
problems
Transportation congestion
Classroom failure
Family pressures
Public safety risks
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The Blue Ribbon Commission to Study Affordable
Housing reported in 2000 there was a need for
68,000 affordable units.
CHFA has financed slightly fewer than 6,900
rental units and group home units (the vast
majority rental) between 1999 and 2004 -- about
10 of the identified need.
A new Partnership-sponsored study now concludes
that 257,000 households in Connecticut are
burdened by their housing situations.
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• Housing prices have skyrocketed, particularly in
  areas that have traditionally been affordable
• Southeastern CT
• Naugatuck Valley
• South Central CT
• Central CT Capitol Region Council of
  Governments (CRCOG) just reported Only 21 of
  home sales were affordable to moderate- income
  buyers in 2005, down from 40 in 2001

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Between 2000 and 2005, housing prices have risen
63.6 while wages have risen 18.5.
The gap is widening
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CT Median Sales Price as of December 2005
328,000 (Source CAR) Qualifying income
74,000 (Source CAR) 100,000 (Fannie Mae)
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The housing wage is what a person must earn per
hour to afford a typical 2BR apartment without
having to pay more than 30 of family income on
housing.
In Connecticut the housing wage has gone from
14.22 to 19.30 in five years.
About 18.90/hour in the Hartford/New Britain
metropolitan area (up from 15.60 in 2004) and
15.60 in the New London/Norwich metropolitan area
Housing wage is 28.88/hour in the
Stamford/Norwalk metropolitan area.
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The median salaries for 294 of 630 occupations in
the state dont reach the housing wage
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They include
Carpet layers Floor sanders Shipping
clerks Telephone operators Medical
secretaries Police dispatchers Tax preparers Lab
technicians EMTs Home health aides Dental
assistants Animal control workers Chefs Tree
trimmers Pest control workers Bookkeepers Computer
operators Travel agents Barbers and
hairdressersFitness trainers
Cargo supervisorsSchool bus driversMetal
fabricatorsTailors and dressmakersTiming device
assemblers Welders Woodworkers Plant and systems
operators Printers Machinists Bakers Bookbinders C
abinet makers Radio mechanics Telephone
linemen Watch repairers Auto mechanics Painters
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CBIA reported in January 2006 there are labor
shortages in 14 skilled manufacturing
occupations, from tool-and-die makers to plant
managers and RD staff. The reasons applicants
lacked skills or found the cost of living AND
HOUSING COSTS too high.
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Connecticuts population and workforce are
getting older. We lost 20-34 year old workers at
a rate much greater than the national average
from 1990-2000, and the trend has continued.
Change in Age Category, 1990-2000 Census, CT
vs. U.S.
55 to 59
45 to 54
35 to 44
25 to 34
20 to 24
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The new study concludes that 257,000 households
in Connecticut cant afford appropriate housing.
The study assumes 10-15 of them and some
households making the median income or more
will leave Connecticut to find housing thats
affordable in other states, resulting in an
annual state revenue loss of well over 100
million.
In addition, workers and businesses wont come to
Connecticut because housing costs are so high.
This opportunity cost will cost the state
untold tens of millions of dollars in
never-realized state revenues.
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Its a supply problem According to Fannie Mae,
Connecticut was 47th in housing construction per
capita in 2004.
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Misconceptions
Affordable housing will lower my property values
A recent MIT study in eight Massachusetts
communities found that multi-family, mixed-income
housing development had no impact on property
values. This replicates other studies.
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Misconceptions
Affordable housing will increase my towns
education costs
Studies show 4-5-bedroom homes generate more
school costs than mixed-income housing,
especially if they include few 3-bedroom units.
Northeastern Univ. study for Massachusetts
legislature showed additional education cost of
affordable housing is negligible.
Connecticuts school-age population (5-17) will
shrink from 590,000 in 2000 to 562,000 by 2015.
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Misconceptions
Age restricted housing will avoid school costs
As empty-nesters move into 55 housing, typically
in the same town, they often move out of a home
thats bought by a family, resulting in a net
increase in students.
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States facing the same housing supply shortage as
Connecticut are offering various incentives to
their towns
Massachusetts is providing cash grants to cover
towns additional service costs if they zone for
higher density housing. And its Commonwealth
Capital program provides financing to towns that
make zoning and land use policy less restrictive.
Illinois allows towns to develop regional
affordable housing solutions towns can pay
other towns in their region to assume some of the
affordable housing burden.
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HOMEConnecticuts Goal Keep families together
and keep workers and businesses in Connecticut by
increasing the supply of housing thats
affordable.
Provide municipalities with professional
assistance, infrastructure needs and help
them cover their costs.
Let public know that affordable housing has
changed beautifully designed, functional,
lower density, needed by hard-working
families and individuals.
Preserve existing affordable housing.
Develop rehab, rental, mortgage subsidies to
make existing homes affordable.
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Old Farms CrossingAvon, CT
Metro Realty Group
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Watch Factory CondominiumsCheshire, CT
Berardino Realtors
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Heritage GlenFarmington, CT
Metro Realty Group
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Southwood Square (HOPE VI public housing
redevelopment)Stamford, CT
Stamford Housing Authority
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before
after
Mortsen Putnam HeightsHartford, CT
Broad Park Development Corporation for
Independent Living
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before
after
215/225 Sheffield AvenueNew Haven
Neighborhood Housing Services of New Haven
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Flagg RoadWest Hartford
West Hartford Interfaith Housing Coalition
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Hubbard WoodsGuilford, CT
Mutual Housing Association of South Central
Connecticut
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at The Lyceum227 Lawrence StreetHartford, CT
06106 860/244-0066david_at_ctpartnershiphousing.com
David FinkPolicy Director www.ctpartnershiphous
ing.com