Connecticut experienced a significant jump in new home construction last year, but not all municipalities shared in the trend equally.
In fact, a majority of the activity took place in a handful of communities. And, surprisingly, it was some of Connecticut’s largest urban centers that recorded the greatest amount new home construction.
New Haven was the breadwinner issuing 412 new housing permits in 2014, up from just 39 a year earlier, according to data provided by the state Department of Economic and Community Development.
East Lyme (363), Stamford (318), Danbury (317), and Norwalk (236) rounded out of the top five.
Overall, there were 4,603 permits issued in Connecticut last year for single-family houses, condominiums and apartment units, up 14 percent from 4,027 a year earlier.
The significant activity in Connecticut cities is a bit surprising because urban centers, which often have higher property tax rates, aren’t traditionally bastions for new home construction.
But the numbers are likely buoyed by the construction of apartment units rather than single-family homes. Demand for apartments has been on the rise in recent years to sate Millennials’ and empty-nesters’ increasing desire to live in urban areas. Other societal trends, like increasing student-loan debt and stagnant wages, have also translated into increased rental unit demand.
U.S. Census Bureau data seems to back that trend. The proportion of Greater Hartford households that own their home continued to decline last year. The Hartford metropolitan area had a home ownership rate of 68.5 percent in 2014. It was the third annual drop, down from 69.8 percent in 2013 and 70.8 percent in 2012.
In Greater Hartford, Simsbury recorded the highest number of new housing permits last year (176), followed by Manchester (71), Southington (70), West Hartford (69), and Bristol (67).
Municipalities that saw the biggest drop-off in activity include Stratford, Berlin, Rocky Hill, and Fairfield, which issued 270, 91, 100, and 155 fewer new home permits in 2014, respectively, compared to a year earlier.Â
