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Market Report

New Haven-Fairfield County Multifamily Investment Forecast

2022 Outlook

Rapid Development Along Commuter Infrastructure;
Investors and Renters Move In From Nearby Markets

Last year's demand surge spurs supply growth in coastal urban cores. Many property developers expect more renters in southwestern Connecticut, evidenced by high supply growth in the local multifamily sector. The area's construction pipeline delivered nearly 2,000 units last year, with another 2,300 apartments expected in 2022. Robust development is driven in part by last year's high demand created by job growth across nearby markets and in-migration from New York. However, as employment growth stabilizes continued stock expansion is projected to lead to increasing vacancy this year. Nearly all of this inventory expansion is occurring in the southern portion of the market along the Interstate 95-Metro North corridor, giving commuters access to southern Westchester County and New York City. Commuters are a traditionally large demand driver for Fairfield County's luxury apartments, but the market has observed heavy renter demand growth for Class B units. New York's lockdowns led many renters to leave for more affordable suburban units deeper into New Haven and Fairfield counties, and a significant portion of this population is likely to remain due to the region's similar income level and lower local cost of living.
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