New Haven-Fairfield County Multifamily Market Report
2024 Investment Forecast
New Haven County Well-Braced for
This Year’s Near-Term Hurdles
Unique mix of demand factors facilitate dynamic market. The persistence of hybrid schedules among New York City employers continues to bolster southwestern Connecticut’s renter base, especially in Fairfield County’s commuter-friendly downtowns. Class A vacancy was on a downward trend here in 2023, ending the year roughly 50 basis points below the long-term average of 5.2 percent. Still, a sizable delivery schedule across the market is likely to exert upward pressure on vacancy this year across this segment and in Class B builds. This trend will be particularly pertinent in New Haven County, where rental demand is more heavily influenced by local drivers. A slowdown in New Haven’s biotech industry is ill-timed with new arrivals, negatively impacting demand for luxury rentals here and in adjacent municipalities. The outlook for Class C units is similarly split by county. While the employment base is set to contract marketwide, the market’s eastern half is better poised to weather this year’s headwinds. Lower-tier apartment vacancy in New Haven County was under the post-2006 average of 5.4 percent, contrasting Fairfield County, where cost-of-living concerns have driven up the rate since the onset of the health crisis to roughly 6 percent.