This article originally appeared on CoStar Insight. It has been republished here with permission.
Developers have been fixed on Connecticut's most populous cities as the state has had roughly 14,900 new apartments come online since the start of 2020, and an additional 7,200 units are still in the construction pipeline.
Stamford, New Haven, Hartford, Norwalk, and Bridgeport are among the cities where multifamily inventory has increased the most.
When all is said and done, the Constitution State's total inventory will expand by over 22,000 units, representing a growth of 15% relative to 2019 inventory levels. Luxury four- and five-star apartments will account for 65% of the increase or about 14,300 units.
Fairfield County — where Stamford, Norwalk and Bridgeport are located — has been at the forefront of the construction boom, with supply growth leading the state on both an aggregate level and as a percentage of 2019’s inventory.
Developers are going big in Fairfield County, which will be home to four of the five 400-unit-plus properties to be constructed in Connecticut since 2020. The largest is Escape at Harbor Point, a two-building high-rise that was completed in 2021. The luxury property has 435 units and is 96% occupied. It features amenities such as a fitness center, pool, fireplace lounges and a climate-controlled wine-tasting room.
Harbor Point has among the highest concentrations of four- and five-star units of all multifamily nodes in Connecticut. Most of the housing units are in the South End, an upscale area that's being transformed into a multiphase, mixed-use redevelopment. Overlooking Stamford Harbor, the South End is a draw for professionals who work in the busy downtown Stamford office district. Developers have been catering to this high-earning cohort, and luxury units now comprise 81% of all apartments in Harbor Point.
While Stamford and Hartford vacancies are expected to remain stable at current levels of 6% and 5%, respectively, through 2025, New Haven is projected to see some downward pressure on occupancies over the next 18 months. CoStar expects the New Haven metropolitan area’s vacancy rate to rise from 4% to about 4.6%, driven in part by a challenging leasing environment in the luxury segment.
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