Connecticut’s real estate market continues to evolve as communities across the state grapple with a persistent housing shortage. In 2025, homebuyers and renters alike are facing limited inventory, rising prices, and increased competition. At Burke Mortgage, we’re keeping a close eye on these changes to better guide our clients across Fairfield, Hartford, Litchfield, Middlesex, New Haven, New London, Tolland, and Windham Counties.
The Housing Shortage: A Statewide Challenge
Connecticut’s housing market is experiencing historically low inventory levels, with supply down more than 15% compared to the previous year. At the same time, demand remains strong, especially in popular counties like Fairfield and New Haven, where access to jobs, schools, and amenities continues to attract buyers.
With the median home price now hovering around $415,000, affordability is becoming a concern for many first-time homebuyers and growing families. This shortage affects both urban and rural areas, with smaller towns in Litchfield and Windham Counties also struggling to keep up with demand for single-family homes and affordable rental units.
Creative Solutions: Converting Closed Schools into Housing
To help address this pressing shortage, several Connecticut towns are getting creative—by transforming vacant school buildings into much-needed residential units.
In Groton, for example, the town has successfully converted multiple former schools into apartment complexes, breathing new life into unused municipal properties. These conversions are adding hundreds of units to the housing stock without the need to clear new land or build from scratch. Bridgeport, located in Fairfield County, has also explored similar redevelopment projects, which align with the city’s broader urban revitalization goals.
These adaptive reuse projects are not only helping to ease housing demand, but they’re also preserving neighborhood character and generating local tax revenue. It’s a win-win for municipalities and residents alike.
Growing Interest in Mixed-Use and Senior Living Developments
Another notable trend in Connecticut real estate is the rise of mixed-use developments, particularly in urban centers like Hartford and Middletown. These projects combine residential, commercial, and sometimes office spaces in walkable environments. They appeal to both young professionals and downsizing seniors who prefer convenience and accessibility.
Speaking of seniors, demand for age-friendly housing is also on the rise. In counties like Middlesex and Tolland, developers are responding by building more senior living communities and assisted living facilities. These new builds often include energy-efficient features, on-site health services, and community amenities—all tailored to meet the needs of Connecticut’s aging population.
Focus on Sustainable and Affordable Housing
With affordability at the forefront of the conversation, state and local governments are pushing for more inclusive zoning laws and affordable housing incentives. Several towns across New London and Windham Counties have started to support “missing middle” housing options—such as duplexes, townhouses, and accessory dwelling units—that provide alternatives to traditional single-family homes.
Sustainable construction practices are also gaining momentum. Builders are embracing energy-efficient materials, green roofing, and solar installations to meet growing consumer demand and lower long-term housing costs.
What This Means for Connecticut Buyers
If you’re considering purchasing a home in Connecticut, whether it’s in bustling Fairfield County or the more rural areas of Litchfield or Windham, it’s important to stay informed about these real estate trends. Housing shortages may limit options, but new developments and repurposed buildings are expanding the market in innovative ways.
At Burke Mortgage, we help buyers navigate today’s competitive landscape with expert guidance and flexible financing solutions. Whether you’re looking to buy your first home, refinance, or invest in one of Connecticut’s emerging communities, we’re here to help every step of the way.