Housing Market Woes Fail to Ignite Building Boom

Connecticut is experiencing a severe shortage of houses for sale, with a decline in the construction of single-family homes. Builders attribute this to rising construction costs and financing costs tied to higher interest rates. The pandemic initially caused inventory to dwindle and prices to rise, and now rising interest rates have further discouraged homeowners from selling. The scarcity of homes has led to increased demand for apartments and higher sale prices for the few houses available. Builders are cautious about future construction due to uncertainty around interest rates, and the shortage of skilled workers and available land also pose challenges.