Hartford among U.S. cities that could see housing prices increase next year, report shows

Photo of Nicole Funaro
Downtown Hartford from across Connecticut River

Downtown Hartford from across Connecticut River

Through the Lens/Getty Images

It’s no secret that Connecticut’s housing market has seen prices increase over the past several years. Whether for apartment leases or home purchases, low inventory and high demand have created ripe conditions for prices to skyrocket. And one Connecticut city is expected to see this trend continue into 2023, according to a new report.

Using data from financial intelligence firm Moody’s Analytics, Fortune examined how house prices might shift in 414 regional housing markets between the fourth quarter of 2022 and the fourth quarter of 2023. Fortune's report also tries to forecast home price shifts between the fourth quarter of 2023 and the same quarter of 2024. While the report found that nationally, U.S. home prices are predicted to rise 0% next year — a “dramatic deceleration from the 19.7% home price uptick we saw over the past 12 months” — there will be 183 markets that will see a year-over-year home price increase in 2023. 

Among the markets with the biggest home price increase next year is Hartford, which is predicted to have a 3.73% jump in home prices in 2023. The capital city joins Albany, Ga. (4.12%); New Bern, N.C. (4.12%); Augusta, Ga. (3.84%); and Casper, Wyo. (3.29%) in the report’s top five cities predicted to have home price jumps next year. Elsewhere in Connecticut, the New Haven to Milford area is predicted to have an 1.88% increase in 2023, while the Bridgeport-Stamford-Norwalk area will likely have a 2.25% home price increase next year. The Norwich-New London area is predicted to have a 1.36% jump in home prices in 2023.

Only one location in Connecticut is predicted to experience a decrease in home prices by the end of 2023’s fourth quarter. Fortune’s report groups the northeast corner of the state with Worcester, Mass. and predicts a 3.21% decrease in the region’s home values by the end of next year.

The current high cost of housing in Connecticut has been noted before. Earlier this month, real estate tracking company HouseCanary reported that the Bridgeport-Stamford-Norwalk corridor has the third-most expensive median monthly rent among other metro statistical areas nationwide. Rent prices have been increasing at such a rate that state lawmakers are proposing a cap on rental hikes to help curb excessive rent increases.

The cost of purchasing a home in Connecticut isn’t much better. Recent data from national real estate brokerage Redfin showed that New Haven and Bridgeport were among the top 10 slowest-cooling housing markets in the country. The report examined year-to-year changes in prices, supply, pending sales, sale-to-list ratio and homes that went off-market in two weeks from February to May.