New Haven, Connecticut is a quintessential elitist Northeastern city. It was founded by Puritans in 1638. The Old Green city center remains the heart of the city. However, this is only of interest to historians and tourists. In this blog, our focus will be on the New Haven real estate market trends and investment outlook for 2020. New Haven sits on Long Island Sound, though it is a fairly long ferry ride to Long Island.
However, this doesn’t matter much to those considering New Haven real estate investment. This does make New Haven part of the New York Tri-State area. The more important facts include the fact that the New Haven housing market is the second largest in the state of Connecticut.
New Haven is home to over a hundred thousand people. The Greater New Haven metro area includes almost a million people. This city’s claim to fame is being home to Yale University. This has a significant effect on the Haven real estate market. First, the university is the largest employer in New Haven. Second, its impact on biotech, healthcare and professional services drives the rest of the New Haven economy and property values in the New Haven area.
Is New Haven a good place to invest in real estate? New Haven is considered as one of the best places to live in Connecticut. In the latest quarter, real estate appreciation rates in New Haven have been around 1.5% to 2%. If they remain steady, the annualized appreciation rate would be around 6% to 8%, which could trigger a massive interest in the real estate investment opportunities in New Haven. Let’s learn more reasons why you may want to consider buying New Haven real estate investment properties in 2020.
Please note that there are many variables that can potentially impact the value of a home in New Haven (or any other market) and some of these variables are impossible to predict in advance.
New Haven Real Estate Market Forecast 2020
What are the New Haven real estate market predictions for 2020? New Haven housing market 2020 is shaping up to continue the trend of the last few years as one of the hottest markets in Connecticut. The latest real estate data from Zillow shows that the current median home value in New Haven is $183,793.
New Haven is currently a seller’s market – which means there are a lot of qualified buyers in the market place and not enough homes for sale in the market. The home prices have risen by 2.8% over the last year. Looking forward into the coming year, the New Haven real estate market forecast is that home prices will continue to increase by 2%. Since 2017, the median home price in New Haven has increased from $163,000 to $184,000.
Here is the New Haven, CT real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 2% till Nov 2020.
The median list price per square foot in New Haven is $138, which is lower than the New Haven-Milford Metro average of $156. The median price of current listings in New Haven is $179,450. The median rent price in New Haven is $1,442, which is lower than the New Haven-Milford Metro median of $1,500.
Zillow reports that 11% of the listings in New Haven had a price cut in Nov 2019, which is a good thing for buyers. It shows sellers were willing to negotiate on prices as they were finding it more and more difficult to sell homes at asking prices. The median price per square foot in New Haven in November was $138.
New Haven Housing Market Forecast 2019 – 2021
Here is a short and crisp New Haven housing market forecast for the 3 years ending with the 3rd Quarter of 2021. The accuracy of this forecast for New Haven is 78% and it is predicting a positive trend. The LittleBigHomes.com estimates that the probability for rising home prices in New Haven is 78% during this period. If this price forecast is correct, the New Haven home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018. Check this page each quarter for updates to the New Haven, CT Real Estate Market Forecast.
New Haven Real Estate Market Trends
We shall now discuss some of the latest real estate market trends in the New Haven such as median home prices, inventory, economy, growth and neighborhoods, which will help you understand the way the local real estate market moves in this region.
Trulia has currently 523 resale and new homes for sale in New Haven, CT including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The median sales price is $235,000 and homes are selling for about $168/sqft.
As per the real estate company called Neigborhoodscout.com, the median house price in New Haven is $212,097, which indicates that home prices in New Haven are above the national average for all cities and towns in the United States. Duplexes and apartments are the single most common housing type in New Haven. Other types of housing that are prevalent in New Haven include single-family detached homes, row houses and homes converted to apartments. New Haven housing market has more renters than house owners. One or two bedroom apartments are the most common housing units in New Haven.
Currently, there are 56 single family homes for sale in New Haven, CT on Zillow. Additionally, there are 61 single family homes for rent in New Haven, CT. Under potential listings, there are about 17 Foreclosed and 209 Pre-Foreclosure homes. These are the delinquent properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
In the past month, 61 homes have been sold in New Haven, CT on Redfin.com. In addition to houses in New Haven, there were also 86 condos, 0 townhouses, and 101 multi-family units for sale in New Haven last month. The median listing price in New Haven is $200K. According their statistics, the New Haven housing market is somewhat competitive. The average sale price of a home in New Haven was $221K last month, up 14.8% since last year. The average sale price per square foot in New Haven is $104, up 28.4% since last year. A hot listing in New Haven can sell for about 1% above list price and go pending in around 32 days.
Here is the latest New Haven housing market data for the month of Dec 2019 from Redfin.com. The sale to list price ratio shows us that it was a trending more like a seller’s market in the past month.
New Haven Housing Market Trends in Dec 2019
|Median List Price||$200,000|
|Avg. Sale / List||96.1%|
|Median List $/Sq Ft||$114|
|Avg. Number of Offers||1|
|Median Sale Price||$221,000|
|Avg. Down Payment||100%|
|Median Sale $/Sq Ft||$104|
|Number of Homes Sold||61|
There are currently 255 homes for sale in New Haven, CT on Realtor.com. The asking price of single family homes can start from $70,000 and can go up to $1.6M for a luxury property located in Momauguin neighborhood in the city of East Haven, CT. The median home price is Momauguin, New Haven is $194,000 and homes are selling for $148/Sq Ft.
There are currently 425 rental properties in New Haven and their rent prices range from $660 to $7000 per month. According to Realtor.com, the median list price of homes in New Haven, CT was $210K in December 2019, flat year-over-year. The median listing price per square foot was $129.
The median list price in New Haven, CT is $179,000 on Movoto.com. The median list price in New Haven went up 6% from December to January. New Haven's home resale inventories is 85, which decreased 5 percent since December 2020. The median list price per square foot in New Haven is $129.
As you can see in the graph, the median price per sq ft rose to its peak value in April 2019, when it was $155. In December 2019 it was $129. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in January.
New Haven is a moderately walkable city in New Haven County. There are 23 neighborhoods in New Haven. Wooster Square has a median listing price of $474.9K, making it the most expensive neighborhood. Quinnipiac Meadows is the most affordable neighborhood, with a median listing price of $155K. Some of the popular neighborhoods in New Haven, Connecticut are Annex, Edgewood, Foxon, Westville, Fair Haven, Beaver Hills, Fair Haven Heights, East Rock, Amity, West Shore, Long Island, East Shore, West New Haven, Prospect Hill and Wooster Square Historic District.
Downtown is an urban neighborhood located in the heart of the city of New Haven, Connecticut. It is one of the best places to live in New Haven. It includes New Haven Green, central business district and a significant portion of the Yale University campus. Downtown, New Haven is one of the most residential downtown areas in the United States and is a highly walkable neighborhood.
- Median Home Value in Downtown: $160,000
- Median Rent in Downtown: $1,200
- Median Household Income in Downtown: $55,000
Westville is another good neighborhood in New Haven, Connecticut. Westville has been consistently ranked as one of the best neighborhoods to live in New Haven due to its high home values, low crime rates, walkable streets, proximity to downtown, and local amenities.
- Median Home Value in Westville: $245,000
- Median Rent in Westville: $1,400
- Median Household Income in Westville: $77,000
East Rock is a diverse neighborhood in New Haven. It is named after nearby East Rock, a prominent trap rock ridge. It offers residents an urban suburban mix feel. The area is home to a large number of students, staff, and faculty from Yale University. It is the most popular and probably the best overall. Heavily populated by students, professors, doctors and other white collar workers, and with most of the residents renting their homes, it is a good place to invest in a residential rental property.
- Median Home Value in East Rock: $350,000
- Median Rent in East Rock: $1,300
- Median Household Income in East Rock: $60,000
The Dwight Street Historic District is located west of the center of Downtown New Haven and is generally bounded by Elm Street on the north, Park Street on the east, North Frontage Road on the south, and Sherman Avenue on the west. Dwight is one of the best places to live in New Haven, Connecticut. It is famous for containing large number of well-preserved residential architecture from 19th and early 20th-century. It is also listed on the National Register of Historic Places.
- Median Home Value in Dwight: $77,000
- Median Rent in Dwight: $950
- Median Household Income in Dwight: $28,700
If you are looking to invest in the New Haven real estate, you should that three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. There should be a natural and upcoming high demand for rental properties. Demand would raise the price of your New Haven investment real estate and you should be able flip it for a lump sum profit. The neighborhoods in New Haven must be safe to live in and should have a low crime rate. The neighborhoods should be close to basic amenities, public services, schools and shopping malls.
New Haven, CT Foreclosures And Bank Owned Homes Statistics
As per the New Haven foreclosure data by Zillow, in New Haven 3.1 homes are foreclosed (per 10,000). This is greater than the New Haven-Milford Metro value of 2.8 and also greater than the national value of 1.2. The percent of delinquent mortgages in New Haven is 3.0%, which is higher than the national value of 1.1%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of New Haven homeowners underwater on their mortgage is 19.7%, which is higher than New Haven-Milford Metro at 13.7%.
|Total No. of Foreclosures in New Haven||71 (RealtyTrac)|
|Homes for Sale in New Haven||111|
|Median List Price||$209,900 (0% drop vs Oct 2018)|
There are currently 71 properties in New Haven, CT that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 111. In November 2019, the number of properties that received a foreclosure filing in New Haven, CT was 41% higher than the previous month and 33% lower than the same time last year.
Is New Haven a Good Place For Real Estate Investment?
Investing in good real estate markets is touted as a great way to become wealthy. Is New Haven a Good Place Real Estate Investment? Many real estate investors have asked themselves if buying a property in New Haven is good investment? If you want to find out whether New Haven real estate is a good investment or not, you need to drill deeper into local trends. The New Haven real estate trends will tell what the market holds for the year 2020. We have already discussed the latest New Haven housing market forecast for 2020.
Purchasing an investment property in New Haven real estate is a little different from shopping for your car or primary residence. While you still want to get the most for your money, if you are looking to make a profit, you don’t want to buy the most expensive property on the New Haven real estate market and expect to make a good profit on rents. Perhaps you are looking for a slightly different hold-over, an investment property in New Haven that you might move into or sell at retirement in the future!
Either way, knowing your profit potential and purpose is the first thing to consider. When looking for the best real estate investments in New Haven you should focus on neighborhoods with relatively high population density, employment growth and strong appreciation potential. Let’s now discuss state of the New Haven real estate market, which can help investors who are keen to buy an investment property in this city.
New Haven Real Estate Prices
The average home in the New Haven real estate market costs a little over 200,000 dollars. That’s roughly in line with the national average, and it is a relative bargain compared to much more expensive real estate markets in the region like New York City and Boston. The New Haven housing market’s prices are in line with the rest of the state despite being on both the waterfront and home to one of the best paying job markets in the state. This gives New Haven an average value for metro areas in the US.
The value of a potential New Haven real estate investment property is almost proportional to its walking distance to Yale. However, a New Haven real estate investment property sitting next to a public transit stop is valuable, as well. Rents are relatively high, since a quarter or more of residents in the New Haven real estate market are renters attending Yale. Median rent is over 1100 a month, and that includes a disproportionate number of efficiencies and one bedroom apartments.
Another slice of the rental market are people who work at Yale or are working at various startups around the college but can’t commit to buying property in the New Haven housing market. Another sixth are retirees, some of whom own homes while others rent in the area. The city of New Haven was ranked 68 out of the top 100 best places to retire, and it is one of the few entries on this list in the Northeast.
Taxes in Connecticut
Connecticut has one of the highest tax burdens in the United States. The state and local tax burden is just under thirteen percent, putting it second in the nation. However, this is second to New York that’s just across the Sound. This actually bolsters property values in the New Haven real estate market, given how many choose to work and live here versus New York. The average resident in the New Haven housing market pays a property tax bill of roughly three thousand dollars.
Yet this is only fifth in the nation as a percentage of property value (1.7 percent). Why? Because the average home in the New Haven housing market is so much cheaper than New York City and several other insanely expensive metro areas. All of this results in a fairly steep tax bill on New Haven real estate market, but it is more manageable than surrounding cities. It also has the side effect of forcing many in the New Haven housing market to rent rather than buy.
Connecticut is definitely renter friendly. If someone doesn’t pay their rent, it can take months to evict them for non-payment. Late fees don’t start until 10 days late. Security deposits can’t exceed two month’s rent unless the tenant is over 62. Then the security deposit is limited to one month’s rent. Fail to pay the deposit or have an evicted tenant argue over damages, and they can sue you in small claims court.
There are strict advanced notice rules for landlords who want to enter a unit unless there is an actual emergency. The law has rules on how to handle abandoned property. Tenants can withhold rent based on repairs they made or claim to have made. Yet all real estate is ultimately local. And we’re back to comparing the New Haven housing market to bigger markets like Boston and New York City. Compared to them, it is much easier to manage a New Haven real estate investment property.
Quality of Life
The quality of life rankings in the New Haven area are a 7 out of 10 according to US News and World Report. The city’s downtown is the most walkable in the region after New York City and Boston. The city has excellent public transportation, so it is right in line with Millennials desire to live a car-free life. The presence of the university creates a rich arts scene and night life at a reasonable price. The job market is better than average, though unemployment hovers around four percent.
This discrepancy is because there are many students competing for entry level and minimum wage jobs, though local professional employers pay better than the national average. Average annual salaries are 55K a year, while the national average is 50K. The New Haven area ranks around average for net migration. This isn’t because there is anything wrong with living in New Haven. Instead, it has a steady stream of students who come to study and then leave for the brighter lights just over the horizon. Yet this bolsters the value of rental properties in the area without putting much pressure on property prices.
Investing in New Haven Real Estate or Not: The Conclusion
Maybe, you have done a bit of real estate investing in New Haven, CT but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. Should you consider New Haven real estate investment? The New Haven housing market is a gem in the rough in the Northeast. It isn’t landlord friendly, nor does it generate incredibly high rental rates.
However, it is a profitable real estate market that offers lower taxes and less red tape than nearby metro areas. A good cash flow from New Haven investment properties means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. Therefore, finding a good New Haven real estate investment opportunity would be a key to your success. If you invest wisely in the New Haven real estate, you could secure your future.
If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate. You must also collaborate and learn from savvy investors who have retired early on in their lives by investing locally in the New Haven real estate market. As with any real estate purchase, act wisely. Evaluate the specifics of the New Haven housing market at the time you intend to purchase.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.
NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in New Haven real estate in 2020. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
Other Good Markets To Invest in Real Estate in 2020
The other real estate market which looks good for investment in 2020 is Trenton, NJ. Should you consider Trenton real estate investment? If you frame it as investing in the affordable end of the Philadelphia and New York real estate markets, then the answer is yes. If you want higher returns and less risk, then the answer is no. However, you can mitigate this by limiting Trenton real estate investment to the better areas in the city. This increases the amount of research required, but it does mean it is possible to buy and profit from real estate in the Trenton housing market.
Another good market to invest in real estate in 2020 is Syracuse, NY. The Syracuse housing market offers cheaper property with a higher return on the investment and less hostile legal climate. It is one of the better choices if you want to invest in New York state. A good cash flow from Syracuse investment properties means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Remember, caveat emptor still applies when buying a property anywhere. Some of the information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
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