Building Costs Per Square Foot in the State of Connecticut, USA

Newly Built House in Connecticut 14 Old Mill Road Plantsville CT06479 – 3 Bed and 3 Baths with 2 Attached Garages on Gross Floor Area 2042 sqft – Built in 2022 – Price $425000

Residential Construction Market Analysis in the State of Connecticut, USA

Building costs are 8% above the national average in the state of Connecticut, and closer to the states of California and New Jersey by a deviation of 1%. Connecticut’s economy is based primarily on financial services and real estate, making it a haven for investors in the residential construction market. The state capital is Hartford but one of its cities with the most inhabitants and the one that has grown the most in recent times is New Haven. This shows you that there are two large urban centers in which you can invest or live, in fact, there are a total of 10 towns with more than 100,000 inhabitants.

Connecticut is a great place to live, and very prosperous if you are looking to invest and earn quickly, but it is important that you know something about its composition before doing so. That is why we bring you this article where we will analyze in-depth the situation of the real estate market, what are the future trends, what type of constructions can you find, and much more.

Connecticut Construction Outlook

Connecticut has varied constructions, with different architectural styles and construction materials wherever you go. In cities like New Haven and Hartford, there are large buildings and an ever-growing urban center. Other towns like Danbury have a large number of inhabitants but their constructions are mostly family houses or buildings with a maximum of 10 floors.

Houses in suburban neighborhoods are usually the typical house with white wood plank walls on the outside and a cozy interior to get through the cold winter. Also the buildings of red bricks and exposed are present in almost all the towns, while the most modern ones are found in the two great urban centers.

Connecticut Housing Market Analysis and Forecast

The trend of the last two years in the northern states of the country shows us that the real estate market has been unstable and with real estate properties that are well above the sale price. Connecticut is no exception, and it’s also a bit lopsided when compared to its pre-pandemic boom.

The state has a historically low inventory, and in fact this winter it reached a new historical low. This not only occurs in Connecticut but is a trend that is happening nationally, but in this state, it is a little more worrying. Against this small number of houses listed is the pent-up demand from buyers looking to buy at historically low-interest rates, which makes it an extremely competitive market, but it is not at all impossible to get a good property at a good price.

In the current environment, it is important to know that you need to be ready to be competitive in the offers, otherwise you will be outbid quickly, due to the fact that there are many buyers waiting.

For investors, larger cities like Bridgeport and New Haven are prime areas, as people are always looking for housing in these cities. You have people who come to this state because they prefer it before living in others in the region such as New Jersey and New York, or they are even tourists who take the opportunity to spend a few days here, which makes it a good option to make the buildings. They can also be used as temporary rent.

Each month in 2022 home values are expected to increase by 0.59%, which sounds good but isn’t great when compared to other states. This is good for buyers because if you are looking for a good price you can wait longer without fearing that prices will increase dramatically.

Although list prices are higher than average, final sales prices tend to match or fall below a property’s appraised value, meaning there’s a realistic chance of negotiating a good deal. On top of that, mortgage rates in the state are pretty low. With the help of the right real estate agent, you could get a great deal on the perfect home.

Connecticut Average House Price (Median Home Price)

The value of a median home in Connecticut is $330,000. Of course, this is a general average, and you can get cheaper houses in different cities. Contrary to what happens in other states, the most populous city in Connecticut (New Haven) is not the most expensive place to live, nor to buy a new property, so we recommend that you look for properties there.

It is good for investors, as you can build large buildings that include different functionalities, such as a terrace bar or premises on the first floor, making even more investors appear. Also on the outskirts of the city, you can find houses for a family to live comfortably and happily, with a good school district and hospitals nearby.

The middle house includes 3 bedrooms, 2 bathrooms, a kitchen, a living room, a garage, and a small garden. If it is a house with more than 4 rooms, the price usually exceeds $400,000. In Waterbury you can find cheaper properties, being large houses for less than $300,000, although the neighborhood has some criticism regarding quality of life (schools are not very good, there are not as many hospitals, there is more insecurity, etc. ).

Proposed Residential Building Projects in Connecticut

Connecticut is one of the most diverse states when it comes to proposed real estate projects. You can find large and modern buildings or complexes of small houses.

In downtown New Haven there are a large number of buildings that are expected to be ready to receive inhabitants in 2022 or early 2023. Those on the main streets include public rooftops with bars or restaurants and businesses on the ground floor. This makes them much more profitable since they have income from different parties.

In addition, in these buildings, some apartments are for rent through Airbnb, which attracts many tourists who want to visit the entire north of the US, and it is cheaper to rent in Connecticut than in New York.

In the outskirts there are some housing projects, which are usually prefabricated houses with the capacity to accommodate families of 4 to 6 people, they are not usually mansions or extremely luxurious houses.

Under Construction Newly Built House in Connecticut 37 Tichnor Road Sahron CT06069 – 5 Bedrooms and 7 Baths with 3 Attached Garages on Gross Floor Area 4438 sqft – Built in 2022 – Price $3500000 (1)

Building Costs Per Square Foot for Single Family Homes in the State of Connecticut, USA

Building costs are 8% above the national average in the state of Connecticut, and closer to the states of California and New Jersey by a deviation of 1%.

Class 1 – Luxury Single Family Homes

The building cost per square foot for luxury private homes in Connecticut ranges from $372.48 per sqft to $571.00 per sqft, with the average being $439.58 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 2 – Semi Luxury Single Family Homes

The building cost per square foot for semi-luxury private homes in Connecticut ranges from $226.38 per sqft to $347.00 per sqft, with the average being $267.15 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 3 – Best Standard Single Family Homes

The building cost per square foot for best-standard private homes in Connecticut ranges from $146.34 per sqft to $222.27 per sqft, with the average being $171.33 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 4 – Good Standard Single Family Homes

The building cost per square foot for good-standard private homes in Connecticut ranges from $106.80 per sqft to $163.78 per sqft, with the average being $126.04 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 5 – Average Standard Single Family Homes

The building cost per square foot for average-standard private homes in Connecticut ranges from $86.69 per sqft to $132.76 per sqft, with the average being $102.22 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 6 – Minimum Standard Single Family Homes

The building cost per square foot for minimum-standard private homes in Connecticut ranges from $68.37 per sqft to $104.80 per sqft, with the average being $80.66 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

List of 9 Metropolitan Areas/Cities in Connecticut – Percentage Deviation of the City/Town Building Cost from the National Average ($X), in Descending Order:

There are 649 municipalities and local governments in the state of Connecticut. There are no counties. The bar chart below indicates that building costs vary in each metro city/town. The construction cost per square foot in each of these metropolitan cities varies from the state and national average by a certain percentage based on the location factor also known as the local modifier.

The percentage deviation of building costs from the National Average for each metropolitan area in Connecticut is shown below.

If $X is the Average National Building Cost in the USA, then it will cost the following to build a residential property in each metro city/town in Connecticut:

Connecticut Average 8% (8% more than X)

• Norwich 063 3%
• West Hartford 062 5%
• Bridgeport 066 6%
• Waterbury 067 6%
• New Haven 065 7%
• Fairfield 064 9%
• Hartford 061 11%
• Bristol 060 12%
• Stamford 068-069 12%

The Metropolitan Area List above as well as the Bar Graphs below shows that Norwich is the cheapest city to build a private home in the state of Connecticut. Stamford and Bristol are the most expensive cities to build a home. Building costs are 3% above the national average in Norwich and 12% above the national average in Stamford and Bristol.

Cheapest Places To Build in Connecticut:

Norwich is the cheapest to place to build at 3% above the national average, followed by West Hartford at 5%.

Expensive Places To Build in Connecticut:

If anything between 5% and 10% is considered expensive, then there are 7 such metropolitan areas in the state of Connecticut. Building costs in the City of Bridgeport and Waterbury are 6% above the national average.  The cost of building a home in New Haven is 7% above the US average. Costs in Fairfield are 9% above the USA average.

More Expensive Places To Build in Connecticut:

If anything between 10% and 15% is considered more expensive, then there are 3 such metropolitan areas in the state of Connecticut. Building costs in the City of Hartford are 11% above the national average. The cost of building a home in Bristol and Stamford is 12% above the US average.

Very Expensive Places To Build in Connecticut

The most expensive places to build a house in the USA are those 15% above the national average. There are no such places in Connecticut.

Connecticut State Average Costs:

Private home building costs in the state of Connecticut are 8% above the US average. Building cost rates in the metropolitan areas of New Haven and Fairfield are closer to the Connecticut state average by a deviation of 1%. Stamford and Bristol are the most expensive cities to build a home in Connecticut, and the state of Connecticut is number 44 on the national ascending costs scale. It is the 7^th most expensive state to build a house in the USA.