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Home » Segregation and Pricing Challenges Affecting Connecticut’s Affordable Housing Projects

Segregation and Pricing Challenges Affecting Connecticut’s Affordable Housing Projects

Connecticut residents are constantly complaining about the state of affordable housing in their area. With growing families and inadequate incomes, the residential housing sector is lagging in numerous ways. At the same time, regional housing plans for urban centers and wealthy communities are bound to enhance segregation within the state. It is a growing cause for concern as the demand for affordable housing is constantly on the rise.

According to Connecticut’s National Low Income Housing Coalition, a significant percentage of the state’s renters are under severe burden. With minimum wages being $624 a month against $1,152 fair market rent for a single bedroom apartment, almost half the income goes towards rent leaving little for other expenses like healthcare, education and various basic necessities. Minimum wage workers need to devote at least 74 hours a week to their job in order to afford a modest 1-room rental in the state.

These statistics depict just a tip of the iceberg. Here are some other problems that are plaguing the state’s affordable housing industry at present.

The Housing Crisis Is Not a New Problem

The Connecticut affordable housing crisis has been building for some years. The COVID-19 pandemic created a number of difficult circumstances in many parts of the world, affecting a variety of sectors. Similar concerns arose in the building industry in Connecticut, but the issues began to emerge some years before the epidemic struck. For a long time, demand for affordable housing has outpaced supply.

The cost of renting and owning a home in Connecticut has been among the highest in the country. Individuals who work two jobs are still having difficulty locating housing that fits their finances. Due to the state’s rapid growth from the 1960s to the 1980s, legislators put a stop to new developments. Since lot sizes were increased, fewer dwelling units could be erected in a given area. This has trickled down to now and with the state still expanding, there is less land available for future construction.

Connecticut’s Housing Shortage

The State has a severe shortage of affordable rental units with the current gap standing at 86,717 units. These are in demand mostly for extremely low income individuals who have a lot of problems with their current places of residence. With cramped spaces in the accommodation at present, it is hard for them to find other options that fit their budgets. For years, Connecticut has failed to construct multi-family homes which has elevated the problem.

Richer Towns can pay to Meet Affordable Housing Goals

Under a new plan that falls under Section 8-30g of Connecticut’s state law, the wealthiest communities in the area will be able to pay a fee and count housing units in adjacent towns to satisfy their affordable housing goals ascertained by the state. This move is not only bound to increase segregation but also further the crisis at present.


Maxwell Drever of drever capital management is of the opinion that unless drastic measures are taken, Connecticut’s current challenge can worsen, making life harder for residents, especially low-income individuals.

Ignorance of Arizona Housing Crisis Can Be Costly

The widening demand-and-supply gap is a prevalent issue that is plaguing not just US states but countries globally as well. The state of Arizona is no different. As population numbers rise, the demand for affordable housing grows as well. However, the supply rates continue to remain at a point where they are not enough to fulfill the needs of the people. With evictions and displacements a constant part of the news coming from Arizona, Maxwell Drever asserts the need for immediate action.

With constant discussions among people across the state, it is evident that the affordable housing crisis is significant. Maricopa County for instance, saw 86,280 new residents enter during 2021 which is the highest number for any US state. Despite this, the number of affordable housing units remain low, escalating the problem for current as well as new residents. These problems are giving rise to a variety of other issues as well.

In order to understand the current affordable housing crisis better, Maxwell Drever of drever capital management notes that the present situation needs to be analyzed comprehensively.

Demand and Supply Gaps Widening

This is a nationwide issue in the United States. In Arizona, it is more prominent than numerous other places. It is a difficulty that affordable housing initiatives encounter all throughout the world. While more individuals are looking for low-cost lodging, there isn’t enough of it available. Contractors are unable to build homes at “cheap” pricing due to disruption of global supply networks and increased material and labor expenses.

The state of Arizona built 486,000 units in the 2000s. In the next decade, this number was cut to almost half with only 240,000 units built. With roughly 90,000 people entering the state of Arizona each year, these numbers are significantly low. At present, the state’s rental vacancy rates are at the lowest during this century with the current ratio standing at just 4.7%. Renters are therefore competing vehemently for affordable housing options.

Significant Delays

Aside from pricing, supply chain issues have created a major slowdown in production. Construction deadlines have increased significantly due to a variety of factors, including late arrival of raw materials and processing and other procedures taking longer than typical. As a result, project completion and handover have been delayed. Each day the renovation is delayed, additional rent and labor costs are incurred, ultimately raising the property’s price.

Government-Funded Projects Confronted with Difficulties

Affordable housing projects funded by the government have failed to adapt to changing market conditions. The US government’s Low-Income Housing Tax Credit program, which was established in 1986, is the single largest source of affordable housing financing. However, many receivers of credit from the institution have indicated that their projects are no longer financially viable due to the agency’s strict conditions.


The rising cost of construction materials and labor has had a substantial influence on affordable housing initiatives. The effect, among other things, is that these initiatives are no longer as affordable as they were once thought to be. This has created major complications for potential buyers wishing to construct a home of their dreams.