The Economic Impact of Connecticut’s Housing Shortage

The housing shortage in Connecticut represents not just a social challenge but a significant economic impediment to the state’s growth and prosperity.

This analysis, released May 22 by the CBIA Foundation for Economic Growth & Opportunity, attempts to quantify Connecticut’s housing underproduction and examines its broader effects on labor markets, business competitiveness, and fiscal health.

The economic costs of Connecticut’s housing shortage manifest across multiple dimensions: reduced workforce availability as potential employees are priced out of job centers; increased business operating costs; suppressed consumer spending as housing costs consume larger portions of household budgets; and diminished economic mobility that threatens future growth.

These economic inefficiencies compound over time, creating impediments to Connecticut’s competitiveness in the regional and national economy.

This research explores these economic impacts and analyzes how Connecticut’s long-term underproduction of housing constrains its economic potential.

The findings inform policy recommendations designed to align housing production with economic development goals, enhance workforce availability, and create sustainable paths for economic growth across Connecticut’s diverse regions.

For more information, contact CBIA Foundation director Dustin Nord (860.244.8522).