According to the Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index, the Connecticut housing market has continued to move deeper into buy territory.

The BH&J Index is a quarterly report that attempts to answer the question:

In today’s Connecticut housing market, is it better to rent or buy a home?

The index examines the entire CT housing market The researchers “measure the relationship between purchasing property and building wealth through a buildup in equity versus renting a comparable property and investing in a portfolio of stocks and bonds.” 

Due to a lack of inventory, the CT home prices have increased by 11.6%, 8.3%, and 6.6% respectively. CT home prices in these areas will begin to return to more normal levels once residents realize that renting is not the best option, therefore bringing home affordability back as well.

Bottom Line

The majority of the country is strongly in buy territory. Buying a home in CT makes sense socially and financially, as rents are predicted to increase substantially in the next year. Protect yourself from rising rents by locking in your housing cost with a mortgage payment now. Contact a Real Estate professional from Dave Jones Realty who can assist you with all of your Real Estate needs!