Rising Rents in Waterbury: Could This Housing Project Help?

Rising housing costs: Will new affordable developments help stabilize the market?

Developers have proposed an affordable housing project in Waterbury, Connecticut, comprising 63 single-family homes on approximately 30 acres near the city's border with Prospect.

Addressing the Need for Affordable Housing

The initiative aims to address the pressing need for affordable housing in the area, offering residents access to quality homes at more attainable prices. The development is expected to enhance the local community by providing modern housing options and potentially stimulating economic growth through increased residential presence.

A Growing Trend in Connecticut

This proposal is part of a broader trend in Connecticut, where developers and city officials are increasingly focusing on affordable housing projects to meet growing demand and support community development.

Planning and Community Involvement

As the project progresses, it will undergo various planning and approval stages to ensure it aligns with local regulations and community needs. Stakeholders and residents will likely have opportunities to engage in discussions and provide input to shape the development's outcome.

Will This Development Impact Rental Prices?

One major question is whether this new development will help bring down or stabilize rental prices in Waterbury. Between March 6, 2024, and March 6, 2025, the median rent for a one-bedroom apartment in the city was $1,100, while a two-bedroom cost $1,500, and a three-bedroom averaged $1,700. These prices reflect a dramatic increase compared to five years ago, when, between March 6, 2019, and March 6, 2020, rents were significantly lower—$750 for a one-bedroom, $950 for a two-bedroom, and $1,150 for a three-bedroom.

Over that five-year period, Waterbury rental prices surged by 46.7% for a one-bedroom, 57.9% for a two-bedroom, and 47.8% for a three-bedroom. With such steep increases, the addition of 63 affordable homes could provide some relief, but will it be enough to curb the rising cost of renting in the city?

What do you think—will this development help stabilize or reduce rental prices in Waterbury, or will demand continue to drive costs higher?

A Path to Homeownership: House Hacking and Multi-Family Homes

For renters who are tired of paying high rent, now might be the time to consider homeownership. There are currently 29 multi-family homes for sale in Waterbury, presenting an opportunity for buyers to start building equity while offsetting their mortgage costs with rental income. House hacking—purchasing a multi-family property and renting out one or more units—can be a great way to lower your own living expenses and transition from renting to owning.

Regardless of whether rent prices come down, stay the same, or continue to rise, it’s always better to be on the receiving end of high rents rather than the paying end. If you’re interested in seeing if you qualify to purchase a home, contact us today to explore your options!