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The ability to afford a home in Connecticut remains challenging in many of the state’s municipalities in spite of significant declines in median home sales prices throughout the state in 2011, according to data presented in the Partnership for Strong Communities’ Affordability in Connecticut, 2011 report. The report – available online here – offers insight on the ability of average households to buy a home in today’s housing market. Data gathered and analyzed for Affordability in Connecticut 2011 show that although home sales prices continue to fall, there remained 88 towns and cities in the state where the state median household income was not enough to qualify for a mortgage for a home at the median sales price in 2011. This is an improvement from 2010, when there were 112 municipalities unaffordable by this measure.
The town median household income was not high enough to qualify for a typical mortgage for the median-priced home in 54 towns and cities in Connecticut in 2011, whereas 96 were unaffordable when looking at town income in 2010. The report was sponsored by The Warren Group (publisher of The Commercial Record), who also provided data on median home sales prices and sales volume for the state, counties and each town in Connecticut.
While home sales prices have been on the decline in many towns, median household income saw gains, according to data provided by Connecticut Economic Resource Center Data Finder, Applied Geographic Solutions. While this has led to more affordability in general, certain areas of the state remained challenged by high housing prices. Many of the towns in Fairfield County and Litchfield County remain on the least affordable towns list (the towns in the red and orange tones on the maps above are “least affordable”) because even though they have high median household incomes, home prices remain quite high and out of the reach of the typical household.
Affordability in Connecticut, 2011 is an annual report of the Partnership for Strong Communities and has been produced since 2006. The goal of the project is to determine whether, in a given town, a home at median sales price for that town was affordable to a household earning the state median household income and the town median household income. To assess this, the Partnership calculates the income needed to qualify for a typical mortgage for each town in the state based on the median sales price of single-family homes. This “qualifying income” is then compared to the median household income, both at the town and state levels. Towns in which the qualifying income exceeds the median household income are considered “unaffordable.”
Click here to access the full report, which offers more information, including detailed tables with town level data and a series of maps showing housing prices.
Affordability in Connecticut, 2010 can be found here.