First-Time Homebuyer Savings Account: Smart Workforce Investment

Connecticut is on the brink of a transformative step toward addressing its housing affordability crisis and strengthening workforce recruitment efforts.

HB 6876, which creates a first-time homebuyer savings account, garnered unanimous bipartisan support in both the Banking Committee and Finance, Revenue, and Bonding Committee.

This legislation is more than just a housing initiative—it’s a strategic workforce development tool that positions Connecticut to compete for talent in a tight labor market.

HB 6876 allows individuals to open tax-advantaged savings accounts specifically for the purchase of their first home.

Contributions to these accounts are tax-deductible, and the interest earned is tax-free, provided the funds are used for qualifying home purchase expenses.

Workforce Recruitment

This model has proven successful in other states, helping young professionals and families overcome one of the biggest barriers to home ownership: the down payment.

Connecticut residents and employers are increasingly challenged by the high cost of living, which deters young workers from settling in the state.

By making homeownership more attainable, HB 6876 directly supports workforce recruitment and retention.

This model has proven successful in other states, helping young professionals and families overcome one of the biggest barriers to home ownership.

CBIA’s Peter Myers emphasized this dual benefit when he testified in support of the bill earlier this year..

“This legislation will help address two issues impacting economic growth—high homeownership costs and the workforce shortage,” Myers told lawmakers.

“We believe this legislation will give employers a competitive advantage over surrounding states by allowing businesses to use this account as a recruitment tool”.

Broad Support, Momentum

Twenty-three states, including New York, Pennsylvania, Colorado, and Iowa, have already enacted first-time homebuyer savings account legislation.

These states recognized that helping residents build equity through homeownership is not only good social policy—it’s smart economic policy.

Connecticut must act now to remain competitive.

Now is the time for stakeholders—employers, housing advocates, and community leaders—to rally behind this initiative.

HB 6876 won unanimous support in both the Banking and Finance committees, demonstrating the growing momentum for this initiative.

This consensus reflects a shared understanding across party lines that Connecticut must act decisively to address housing affordability and economic competitiveness.

As HB 6876 moves to the House calendar, now is the time for stakeholders—employers, housing advocates, and community leaders—to rally behind this initiative.

The account is a low-cost, high-impact policy that empowers residents, strengthens communities, and builds a more resilient economy.

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For more information, contact CBIA’s Pete Myers (860.244.1921).