New Haven -Fairfield County Multifamily Investment Forecast
Heavy Development Along Transit Routes;
Buyers Move In From Nearby Markets
Last year's demand surge spurs new supply in coastal urban cores. Many developers expect more renters to reside in southwestern Connecticut, evidenced by recent supply growth in the locale. Deliveries totalled nearly 2,000 units last year, with another 2,300 apartments expected to finalize in 2022. Last year's release of pent-up leasing demand coinciding with job growth in nearby markets and in-migration from New York are some of the factors driving the development surge. However, as employment growth stabilizes, continued stock expansion through this year is projected to generate elevated vacancy. Nearly all of the new supply is being built in the southern portion of the market along the Interstate 95-Metro North corridor, giving workers 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 solid renter demand growth for Class B units recently. New York's lockdowns led many renters to depart for more affordable suburban units deeper into New Haven and Fairfield counties, and a significant portion of this population is likely to remain in these neighborhoods due to the region's similar wage level and a lower local cost of living.