Housing Affordability Addressed by Connecticut Legislature

 Posted on March 12, 2025 in Real Estate Law

It’s that time of year once again – the time when Connecticut lawmakers discuss low vacancy rates, high rents, home ownership becoming increasingly out of reach for many, and the rise in homelessness. While it is a yearly discussion, little has been done about the issue from one year to the next.

Like many states, Connecticut clearly has a housing problem, and residents are beginning to wonder if their elected lawmakers will ever really dig in and make much-needed changes. If you are contemplating a real estate purchase or sale, it is always a good idea to have an experienced Stamford, CT real estate attorney by your side to avoid many of the pitfalls that are commonly seen in real estate dealings.  

Why Are There Ongoing Housing Affordability Issues in the State?

The issue seems to come down to arguments between housing advocates as opposed to "local control" champions, as the local land use authorities continually stand in the way. There is no lack of capital to finance housing developments and no lack of building materials. There are plenty of architects, carpenters, electricians, plumbers, and structural engineers necessary. And there is certainly no lack of demand.

Connecticut’s individual towns and cities may have boundaries that are fairly arbitrary and are often established by the presence of a stream or river. The ability to regulate what can be built across the state is, ostensibly regulated by state statute that goes back to 1926 – but individual municipalities have been given the power to govern what can be built within their boundaries.

State statute declares that land use development must benefit the environment, local economy, and residents' health and welfare, generally recognizing the need for all types of development. Unfortunately, these are regional zoning laws and may or may not be included within the boundaries of individual cities and towns.

The General Assembly bestowed the ability to regulate land use to individual jurisdictions. While this power could be rescinded, with the state regulating land use in every city and town, lawmakers have been hesitant to force this issue. For example, Section 8-30g, enacted in 1989, sets a goal that 10 percent of each municipality’s housing must qualify as "affordable." If that 10 percent is not met, developers are allowed to propose projects that are not subject to local zoning regulations.

Less than 30 cities and towns across the state currently meet this 10 percent threshold. The issue basically boils down to the state’s desire to increase affordable housing against local residents’ wishes to keep their town or city "the way it has always been." This struggle between state goals and the wishes of cities and towns has continuously put stumbling blocks in the way of affordable housing.

How Could Lawmakers "Fix" This Housing Crisis?

Many believe that state housing laws should require each city and town across the state to have a conservation and development plan consistent with the Regional Plan. To take this a step further, developers and landowners would be allowed to petition the Connecticut Superior Court to override local ordinances that fail to comply with the Regional Plan.  

Advocates of this approach say the state as a whole is short almost 100,000 affordable rental units. So, will this finally be the year that lawmakers make these changes? Those who are not in favor of telling localities how to manage their housing regulations must still admit that Connecticut’s persistent housing shortage is unlikely to improve unless and until changes are made.

The lack of affordable housing has a significant effect on a state's overall economy. A 2024 report ranked Connecticut among the worst states for renters, largely because of the high income-to-rent ratio, which is about one-third of the average income.  When people are forced to spend a large percentage of their monthly salary on a roof over their heads, they do not spend money on other things, which causes the economy to go in the wrong direction.     

Contact a Fairfield County, CT Real Estate Lawyer

The current economy is anything but stable, and when added to the state's housing crisis, it can be difficult to know whether buying a home is a good idea. If you have real estate questions or need help navigating a real estate contract, a highly skilled Stamford, CT real estate attorney from Law Offices of Daniel P. Weiner is ready to help. Call 203-348-5846 today to schedule your free consultation.