Connecticut Real Estate Market Weekly Insights (6-30-25)

In this week's Connecticut Real Estate Market Weekly
Insights, we start with an in-depth look at how the rental
market is performing across the state. In May, Connecticut saw
1,123 residential leases signed—a 6.7% increase
year-over-year—showing strong demand despite rising prices. The
median rent is now $2,200, up 2.3% from last year, and renters
are paying near the asking price, suggesting slightly improved
negotiation leverage. Median days on market increased slightly to
25, while luxury rentals over $4,000/month are still leasing
above asking.


We break down rental trends by unit size, pricing tiers, and
lease types, noting that one- and two-bedroom units dominate the
market, but demand for larger rentals is rising. Local spotlights
include Stamford with high prices but dropping activity, and
towns like Middletown, Madison, and South Windsor with
significant spikes in demand and pricing.


On the mortgage front, interest rates dipped slightly, with
30-year fixed averaging 6.72%. We discuss how slow job growth and
high rates are discouraging homeowners from listing, thereby
tightening inventory and keeping prices high despite broader
economic headwinds.


The episode also covers Governor Lamont's veto of HB5002, a major
housing bill aimed at expanding affordable housing through
mandates and zoning reforms. Lamont's veto was aimed at
protecting local control while retaining support for key
components like transit-oriented development. Lawmakers are
expected to revisit the bill in a special session this fall.


Nationally, we examine how rising inventory and moderating price
growth are giving buyers more leverage. Despite record median
home prices, many homes are selling below asking. Home-flipping
activity has slowed to its lowest point since 2018, and investor
returns are shrinking—especially in high-cost markets—due to
tighter margins and longer flip cycles.


If you’re interested in buying, selling, or renting real estate
anywhere within the State of Connecticut, please visit our
website to see how we can assist you!