Connecticut Housing in 2025: Prices Up, Sales Down, Migration Rising

Connecticut's housing market in 2025 is a study in contrasts. Prices are climbing, inventory remains tight, and the number of sales has dipped—yet the state continues to attract out-of-state buyers while simultaneously seeing a steady flow of residents leaving for other parts of the country. If you're buying, selling, or investing in Connecticut real estate, this year's data provides valuable insight into how to move smartly in a competitive environment.

Market Trends: A Pricing Surge Amid Slower Sales

As of September 2025, the median sale price for single-family homes in Connecticut hit $490,000, an 8.9% increase from the previous year. The average price per square foot rose to $299, also up 8% year-over-year, and the average sale price jumped to $701,787. These metrics reflect strong appreciation, particularly in the mid-priced segments.

However, despite rising prices, the number of total sales dropped by 9.3%, with 2,685 transactions in August alone, suggesting that affordability pressures and economic uncertainty may be sidelining some buyers.

Inventory remains historically tight, with only 1.47 months of supply available, well below the 5-6 months considered balanced. Days on market (DOM) remain low at a median of 17 days, indicating that well-priced homes are still moving quickly.

Most market activity continues to cluster between $200,000 and $599,000, where buyer competition remains fierce. Properties in this range often receive multiple offers and sell over asking price. Meanwhile, homes priced above $1.2 million are seeing more sluggish turnover, longer days on market, and are more likely to undergo price reductions.

The New Geography of Connecticut Buyers and Sellers

Migration is becoming a key force shaping Connecticut's housing market.

Where are sellers going? Many Connecticut homeowners are heading south or seeking states with lower costs of living. In August 2025, the top destinations for sellers included:

• Florida (18%)

• New York (13%)

• Massachusetts (9%)

• North Carolina (7%)

• South Carolina (6%)

This outflow is consistent with national retirement and remote work trends, as people search for warmer climates and tax-friendly environments.

Who's moving in? On the flip side, Connecticut is drawing a significant share of out-of-state buyers. In August, 19% of all buyers were from outside Connecticut, continuing a trend that peaked in 2021 and has since stabilized.

Top buyer sources include:

• New York (39%)

• Massachusetts (17%)

• Florida (6%)

• California (5%)

• Rhode Island (5%)

This inbound migration is largely driven by buyers fleeing higher housing costs in neighboring states, especially the New York metro area. Connecticut offers more space, lower prices, and a quieter lifestyle, while still providing access to major urban centers.

A Competitive Yet Fragmented Market

Despite overall demand, not every listing is flying off the shelf.

A full 33% of active listings have had at least one price drop, with the average reduction around 10%. Homes that drop their prices spend a median of 44 days on market before going pending. This is especially true for homes priced above $800,000, where buyers are slower to engage and more inclined to negotiate.

In contrast, homes between $200,000 and $599,000 continue to experience short DOM (12-16 days) and sell for 3-4% over asking. Listings in this range represent over 60% of all single-family home sales and are the epicenter of competition.

If you’re a seller in a higher bracket, it’s essential to price your home accurately from day one. If you’re a buyer in the mid-range, be ready to act fast and come prepared with strong offers.

What Buyers, Sellers, and Investors Should Know Now

For Buyers:

• Expect bidding wars under $600k

• Work with an agent who can help you move fast and understand local dynamics

• If shopping above $1M, take advantage of softer competition and room to negotiate

For Sellers:

• Homes under $600k can still fetch top dollar if marketed aggressively

• Listings above $800k need competitive pricing and possibly staging to stand out

• Consider the timing of your sale to align with buyer activity (spring and early summer remain strong)

For Investors:

• Rental demand remains robust, especially in commuter-friendly towns

• Price growth and limited supply make appreciation potential strong

• Be strategic about property condition, as turn-key homes are commanding premiums

Final Thoughts

Connecticut's 2025 real estate landscape is complex but full of opportunity. Rising prices and low inventory are challenging for some but rewarding for others. Migration patterns show a growing attraction from out-of-state buyers, especially those looking to escape high-cost metros without sacrificing quality of life.

Understanding these market forces can make the difference between a missed opportunity and a smart move.

Contact us below to talk with a local expert about how we can help you buy, sell, invest, or manage property in today’s Connecticut market.

The Real Reason Realtors Avoid Talking About Schools

One of the most common questions homebuyers ask Realtors is about the quality of schools and school districts. While this is an understandable concern for families, it’s an area where real estate professionals must tread carefully. Discussing the quality of a school can unintentionally cross into Fair Housing issues, since comments about schools may be interpreted as comments about the people or demographics in a community.

Because of this, many Realtors avoid offering personal opinions on schools. Instead, we direct buyers to independent, publicly available resources so they can form their own judgments.

Reliable Resources You Can Use

Here are three of the most widely used and free-to-access platforms that provide detailed school information:

• GreatSchools.org – Offers a simple 1–10 rating system based on test scores, student progress, and equity. It’s an easy way to get a quick snapshot of how a school is performing.

• Niche.com – Provides detailed “report cards” with grades for academics, teachers, clubs, diversity, and college prep. It combines hard data with student and parent reviews, giving you a well-rounded perspective.

• SchoolDigger.com – Useful for side-by-side comparisons of schools. It focuses heavily on state test score data, demographics, and spending per student, making it a good choice if you like to dig into numbers.

These sites are not sponsored by us in any way, and all are free to the public without requiring a subscription.

Additional Sources Worth Exploring

The three sites above are excellent starting points, but they aren’t the only options. Other reputable sources include:

• State Departments of Education (for Connecticut, the Connecticut State Department of Education publishes accountability reports and district data)

• U.S. News & World Report school rankings

• National Center for Education Statistics (NCES)

• Local parent-teacher associations and district websites

Using multiple sources will give you a broader, more accurate picture of a school or district.

Important Disclaimer

We share these resources strictly for informational purposes. Realtors are not permitted to steer clients toward or away from neighborhoods based on school quality, demographics, or similar factors, as doing so could violate Fair Housing laws. Our role is to connect you with the tools you need to make your own informed decision.

When considering a school district, we strongly recommend that buyers:

• Review several sources of information

• Visit schools personally

• Speak directly with school staff and parents

Selling a Home in Connecticut? Make Sure Your Agent Understands This New Property Tax Rule

If you're planning to sell your home in Connecticut, there’s a new update from the Office of Policy and Management (OPM) that could affect your transaction—and not every agent knows about it.

📣 What’s Changed?

Many Connecticut towns are going through property revaluations and using a phase-in approach to gradually introduce new assessed values. This helps ease the financial impact on homeowners, but it also complicates things when it comes to disclosing property taxes to potential buyers.

Here’s the issue: The tax bill for your property may currently reflect a partial phase-in—meaning it’s lower than it will be in the coming years. Buyers often rely on the current tax bill to calculate their monthly costs. If this isn’t explained clearly, it could lead to confusion, renegotiations, or even lost deals.

🧠 Not All Agents Know This

Real estate agents are required to disclose accurate information about a property's taxes, but many agents aren’t aware of how phase-ins work—or how to communicate them correctly in the listing, disclosures, and negotiations.

At Triniyah Real Estate, we stay up to date on guidance from the State of Connecticut to ensure our clients are protected. We proactively explain phase-in tax adjustments to buyers and their agents, so there are no surprises down the road.

🤝 We Educate Sellers—Even if They Don't Work With Us

Whether or not you decide to hire us to sell your home, we believe homeowners deserve to be informed. If you choose to work with a different agent, make sure they are aware of this phase-in policy and how it applies to your property.

You can even forward this article to them if needed.

✅ What Your Agent Should Be Doing:

• Confirming whether your property is in a town using phase-in assessments

• Explaining how future tax increases may affect the buyer

• Including accurate and transparent tax information in the MLS and disclosures

• Preventing potential misunderstandings that could delay or derail your sale

📞 Have Questions?

If you’re unsure whether your home is affected by a phase-in, or you want to understand what your property is really worth in this market, we’re here to help. Our goal is to empower Connecticut homeowners with accurate, up-to-date information so they can make smart decisions—whether or not they choose to list with us.