Report: Affordable housing still needed

HARTFORD, Conn.—Housing inventory is rising in some parts of Connecticut, but there's a discrepancy between what's coming on the market and the need for more affordable homes, according to a report released Wednesday by a housing advocacy group.

Much of the available housing is older, located in less desired parts of the state, and is not appealing to young professionals, said Donald Klepper-Smith, an economist who analyzed the state's housing market for the HOMEConnecticut campaign, part of the Partnership for Strong Communities.

"The bottom line is that the current housing correction is not apt to result in adequate supply of affordable housing that would promote overall economic development within the state," he said.

The median sales price of $268,000 still requires a household income of about $69,000 to qualify for a mortgage, he said. Meanwhile, a renter needs to earn at least $22.11 per hour to afford a typical two-bedroom apartment in Connecticut.

Housing prices have not dropped in Connecticut as much as in surrounding states and other regions of the country, he said.

Klepper-Smith first conducted a similar housing affordability study three years ago. Since then, the need for affordable rentals, townhouses, condominiums and starter homes in the state has become more pronounced, he said.

Last year, the state legislature passed the HOMEConnecticut law, which offers $25,000 to $50,000 grants to municipalities interested in designing mixed-income housing zones to encourage developers to build affordable housing. Five towns have applied so far, and one grant has been awarded to Ledyard.

Mary Glassman, first selectman of Simsbury, said her town, where less than 3 percent of the housing stock is considered affordable, is applying for the grant money. She said elderly residents are having a difficult time selling their homes to young families in order to downsize, and there aren't enough affordable homes to attract young professionals to the town.

"It's going to be a real problem in the future," she said.

Julio Concepcion, a member of the Hartford young professionals and entrepreneurs club, said he'd like to stay in the Hartford area but often receives out-of-state job offers.

"Every year I find it harder and harder to say no," he said. "My decision will ultimately come down to affordability. Can I afford to live in this state? At this point, I question that."

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On the Net:

http://www.homeconnecticut.org