Increasing home values – The median home value in Connecticut is well above the national average. Also, home values have risen by 4.5% over the past year and are anticipated to increase by another 4.1% in 2019. Median rent prices in Connecticut are way above the national average. A robust rental market with steady appreciation is the perfect recipe for real estate investors looking for maximum ROI.
High taxes – Property taxes in Connecticut are quite higher than the national average. The ‘state’s average effective property tax rate is 2.02%, which is the 4th highest across the country. Connecticut’s sales and income taxes are also above the national average, which can make affording houses an issue.
High mortgage delinquency rate – Connecticut currently has a 2.2% mortgage delinquency rate, which is higher than the national average of 1.6%. Many homeowners are still under on their mortgages, which is increasing rental demand.