New Haven-Fairfield County Retail Market Report
Development Trends a Boon for Existing Retail as
Headwinds Appear on the Horizon
Rising prices compound cost-of-living concerns. As inflation year-over-year remains at multidecade highs , home price appreciation has coaxed 20- to 34-year-olds to leave southwestern Connecticut for lower-cost markets, accelerating a trend that became increasingly evident during the pandemic. Relocations by this cohort will slow population growth, which is expected to ease demand for goods and services in the latter half of the year. Additionally, softening economic outlooks have prompted some of the market's employers to shed positions, further impacting consumer spending in the near term. Despite these retail headwinds, Fairfield and New Haven counties are positioned to handle a potential economic downturn. Both locales are home to a steadily growing 65-plus demographic and a median household income that is more than two-and-a-half times the national equivalent.