Rent vs buy in Connecticut
Over 7 years at today's numbers, renting wins in 11 of the 12 cities of 50,000+, and buying wins in 1.
Renting or buying in Connecticut's cities
| City | Verdict | 7-year result | Break-even (up to 30 yrs) | Typical home | Rent /mo |
|---|---|---|---|---|---|
| Norwalk | Rent | renting wins by $130k | none in 30 years | $667,722 | $2,730 |
| West Haven | Rent | renting wins by $63k | none in 30 years | $362,817 | $1,919 |
Data comes from the Zillow Home Value and Observed Rent indexes. Each verdict follows our rent vs buy method, which weighs renting against buying at 20% down over 7 years.
Our take on Connecticut
Renting wins in 11 of Connecticut's 12 biggest cities over 7 years, so the state leans hard toward renting. Buying puts you ahead only in Hartford. Rent there runs $1,555 a month, while a typical home costs $202,489. Over 7 years, buying comes out $12k ahead, and it breaks even in year 5.
High home prices elsewhere mean you come out better renting Statewide, expect a typical home value of $447k, and median rent runs $1,488 a month, near the $1,413 US number. A $490,334 home in Danbury rents for $2,587 a month. Over 7 years, renting saves you $44k there, and you don't break even on buying until year 15. Stamford costs more, pairing a $717,654 home with rent at $2,971. Renting over 7 years saves you $142k, and buying never catches up within 30 years.
The yearly costs of owning weigh on your budget too. A property tax of 1.81% applies to you, well above the US rate of 0.94%. You'll pay $1,466 a year for homeowners insurance, above the $1,308 US number. Home prices rose 6.1% a year in the last 10 years, outpacing the 3.9% a year pace over a longer stretch. Still, those gains don't wipe out your steep tax bill. Across the state, 34% of households rent, which comes to 481,018 homes, close to the 35% US share.
Our take: in Connecticut, renting is the smartest move unless you're buying in Hartford. Hold down what you pay each month, then invest the savings from taxes and home prices.