New Haven-Fairfield County Retail Market Report

High-income households maintain retail engagement. Home to the state’s Gold Coast, southwestern Connecticut boasts the highest median household income of any major U.S. market. Set to reach $191,000 by the end of 2023, this measure eclipses the national equivalent by more than twofold. Recent leasing behavior suggests tenants are following consumers to areas with higher discretionary spending capabilities. Fairfield County noted a net of 548,000 square feet absorbed during the yearlong span ended in March, the highest 12-month total in more than half a decade. In New Haven and adjacent municipalities, home to comparatively more middle- and working-class demographics, an 80-basis-point increase in vacancy was observed during this same time frame. Value retailers are expanding into this portion of the market, however, which should support a backstop for rising vacancy moving forward.