The Bridgeport metropolitan area — also known as Fairfield County — has the highest home values in Connecticut at $568,000, well above the national average, according to Zillow Research, which estimates the typical value for homes in the 35th to 65th percentile range in an area.
In other Connecticut metropolitan areas, home values ranged from $320,000 to about $350,000, and values increased more than 7% from 2022 to 2023, compared with an increase of about 2.4% nationwide.
The Bridgeport-Stamford-Norwalk Metropolitan area consistently has had the highest home prices among Connecticut metros, starting at $268,000 in 2000 and increasing over time. Hartford, New Haven and Norwich have followed similar patterns, increasing gradually each year, and, starting in 2016, aligned with U.S. home prices.
Connecticut ranks fourth among states with the biggest percentage increases in home values over the past year, behind Hawaii, Delaware and Rhode Island.
From 1975 to 2023, Connecticut’s home prices were usually higher than the U.S. average, but in recent years, national prices have grown faster and passed Connecticut, according to the U.S. Federal House Finance Agency.
Between 2014 and 2018, U.S. home prices increased by about 5% per year, while Connecticut’s growth was much slower, around 0.5% to 1.6% per year, which made Connecticut fall behind the national average.
In 2023, Connecticut’s home prices rose 9.2%, higher than the U.S. increase of 5.7%. But since national prices had grown faster for many years, the U.S. housing index is still higher than Connecticut’s overall.
In the first quarter of 2024, Connecticut's house prices increased by nearly 10% year-over-year, ranking seventh in the nation. By the third quarter, Connecticut ranked 4th nationally for home price increases, with an 8.15% rise over the past year and a 67.28% increase over the last five years.
The market heat index measures supply and demand. The drop in U.S. numbers means selling has become harder, according to Zillow Economic Research. The U.S. market heat index peaked in 2021 at 77.42 but then dropped to 70.00 in 2022.
Connecticut’s metro areas, however, did not see the same decline in 2022, with markets like Hartford and Torrington continuing to rise.
From 2018 to 2023, Connecticut metro areas generally followed the national trend but at different levels. Hartford, Bridgeport and New Haven saw slower increases, with Hartford reaching 98.0 in 2022, making it a strong seller’s market.