Connecticut’s housing shortage is deterring businesses from moving to the state, according to a new report.
Connecticut’s housing production rate is much lower than surrounding states, and it’s changing the state’s business industry, according to Dustin Nord, director of the Connecticut Business and Industry Association’s (CBIA), Foundation for Economic Growth and Opportunity.
Nord recently authored a study quantifying Connecticut’s housing underproduction and examining the broader effects on labor markets and business competitiveness.
“This is a major problem for a lot of businesses in the state, with respect to being able to recruit high quality talent from out of state to come to Connecticut.” Nord said.
There are more than 70,000 positions statewide that need to be filled and the hiring process is challenging for businesses, Nord said.
The report found the lack of housing inventory and housing affordability has led companies to leave Connecticut. Many have also decided against moving their headquarters to the state as employees can’t find or afford housing.
The housing crisis has led to several economic impacts. Some of those impacts include reduced workforce, as potential employees are priced out of the housing market and increased business operating costs.
The report also points to a decrease in consumer spending as more people spend a large chunk of their income on housing costs. The state’s future economic growth is being threatened by the lack of economic mobility.
Nord hopes the study lays out the different options the state can explore to address the housing crisis.
“What I hope this spurs is sort of a real conversation about, ‘Okay, if other states are doing this, in both red and blue states, mind you, what is it?’ What is holding us back from doing the same thing as a state? What are the types of reforms that we are comfortable with, and how can we achieve them?” Nord said.
The report has gained the attention of local lawmakers. State Rep. Jason Rojas recently spoke about the study.
The recent omnibus housing bill, approved by the State House of Representatives, encompasses many of the suggestions outlined in the report, Rojas said.
“It was interesting to read in that report and see a lot of what they're suggesting needs to happen to address the economic impact of the lack of housing or our inability to develop more housing,” Rojas said.
“They talk about parking reform, which I think is something that we're all aware of, but don't really think about too much in terms of how it impacts our day to day lives, either financially or environmental.”
