Hartford historically has the lowest homeownership rate in Connecticut, at just 23%. But now, more than half of millennials living in Hartford are homeowners.
A recent report by RentCafe analyzed U.S. Census and survey data gathered by the Institute for Social Research and Data Innovation at the University of Minnesota. It found 56% of millennials in Hartford own their homes, while 44% in the city rent.
Single family homes in Hartford are significantly more affordable than homes in other Connecticut cities of similar size and in neighboring states. These factors help lead to the increase in homeownership, according to RentCaffe data analyst Doug Ressler.
“The average home value in Hartford is about $203,000, that's pretty good,” Ressler said.
Similar-sized cities have higher costs. In New Haven the average price for a house is $338,000.
New Haven and Bridgeport are still renter driven markets, with people who rent in those cities making up about 50% of the population.
As for why Hartford has more millennial homeowners compared to other comparable Connecticut metros, the city’s location and job market play a role, Ressler said.
“You've got pretty good white-collar jobs in the Hartford area,” Ressler said. “You've got Travelers Insurance, Aetna, United Technologies. Those are all good companies. And so I think what you see is a higher wage and salary type of white-collar worker that obviously helps in terms of affordability for homes.”
The increase in millennial homeownership in Hartford is evidence that recent city and state investments are working, Ressler said.
“We found that the incentive programs that Hartford offers is also one of the tailwinds that's helping,” Ressler said. “Not all cities have the portfolio that Hartford has.”
Ressler cited programs like HouseHartford Homebuyer Assistance Program, which provides up to 20% of the downpayment for low- and moderate-income homebuyers.
The Connecticut Housing Finance Authority’s Time to Own program also provides forgivable downpayment loans for eligible families.
The 52.5% increase in homeownership took place over the last five years to 65,900 households, according to the report.
The data shows millennials’ income growth outpaced the rise in housing costs, leaving them with more money to save and spend on homes.
“The Hartford market especially operates from an affordability standpoint where home buying for the millennial generation, the first-time home buyer, is beneficial, especially when you compare it against other cities,” Ressler said.
Another driving factor in millennial homeownership is the generation approaching the time in their lives when they are prepared to start families and settle down, Ressler said.
Nationwide, North Port, Fl., saw the largest increase in millennial homeownership over a five year period, from 2018 to 2023, according to the report. The number of millennials who bought homes there nearly tripled.
“Many younger millennials had previously delayed buying a home due to student debt and high costs, but now they’re finding options that fit their budgets in a handful of affordable oases,” RentCafe research analyst Veronica Grecu said in the report.
