Rising rent and mortgage interest rates are causing a squeeze on Fairfield County’s housing market. Developers in Connecticut are looking for ways to ease the squeeze placed on middle-income renters.
Not only is there a lack of deeply affordable apartments in Fairfield County, but there aren’t enough options for renters on the higher end of the affordability needs, according to Andrew Bolger, a senior data and research analyst at the Connecticut Housing Finance Authority (CHFA), a quasi-public agency that helps create affordable housing.
“There are more units available than there are households in the middle of the market,” Bolger said.
Bolger explained this is causing a squeezing effect in the middle.
Recently at a Fairfield County Talks Housing meeting, Bolger outlined new data regarding Fairfield County’s housing market. It showed that many renters are being forced to pay more than they can comfortably afford for an apartment, and other renters are opting for apartments below what they could afford, leaving less options for lower-income renters.
“Because there's a lack of units that are affordable to the lowest income renters, they are essentially forced to rent up into units that are affordable to someone, say, someone earning 50% AMI (area median income),” Bolger said.
In Fairfield County, the average rent has increased between 20% and 30% over the last six years, Bolger said.
Recently, CHFA stepped up efforts to generate housing for different income levels in Fairfield County, funding several mixed-income housing developments in Bridgeport, Darien and Greenwich.
Along with generating more affordable rental options, CHFA works to educate prospective homeowners on the homebuying process. It also creates affordable homeownership opportunities.
CHFA provides assistance to homebuyers earning below 120% AMI.
“In Bridgeport that equates to, depending on the household size and location, about $133,000 up to $171,000,” Bolger said.
CHFA also operates Connecticut’s Time to Own program, which provides forgivable loans for first-time homebuyers. In Fairfield County, nearly 500 families have been able to purchase homes through the program since it began in 2022.
CHFA is keeping an eye on how the current presidential administration may impact its programming, Community Engagement Officer Terry Nash said.
Some programs cannot be eliminated or defunded immediately since they are in place by law, Nash said.
“HUD (Department of Housing and Urban Development) funding has been paused, but not eliminated, and there are certain programs that are now under review for audit,” Nash said. “It seems like everything's up for review. So we've been told that it's fair to say business as usual until told otherwise.”
