The Housing Divide: Addressing Connecticut’s Affordable Housing Crisis

Introduction

Why Housing Justice Is Central to Economic, Climate, and Community Well-being

Across the country and in Connecticut, the cost of housing has soared beyond the reach of many individuals and families. What was once a pathway to security and upward mobility is now an escalating barrier for low- and middle-income residents. The affordable housing crisis is not simply an economic challenge—it is a justice issue that cuts across race, class, geography, and generation.

The Affordable Housing Crisis in Connecticut: Issues and Solutions, a report by Foundation House, explores this crisis through the lenses of economic equity, racial justice, and climate resilience. It examines systemic causes—like underinvestment, exclusionary zoning, corporate speculation, and gentrification—and outlines bold, actionable solutions. Foundation House is committed to addressing housing insecurity by supporting community-based innovation, advocating for just policies, and investing in long-term structural change.

Housing as a Justice Issue

Access to safe, stable, and affordable housing is a basic human right. Yet millions across the U.S.—and thousands in Connecticut—live with the daily fear of eviction, overcrowding, or homelessness. Historically, discriminatory practices such as redlining, predatory lending, and exclusionary zoning shaped housing landscapes in ways that persist today. Black, Latino, Indigenous, and immigrant families continue to face disproportionate housing instability.

Housing instability is also a root cause of poor mental and physical health, lower educational attainment, and lost economic opportunity. The inability to access secure shelter destabilizes entire communities, widening the racial wealth gap and perpetuating cycles of poverty.

National Drivers of the Crisis

1. Stagnant Wages and Soaring Costs

Housing costs have skyrocketed while wages have remained largely flat. The federal minimum wage has not changed since 2009, yet rents and home prices have more than doubled in many cities. For too many families, housing consumes more than 50% of monthly income.

2. Supply Shortages and Zoning Barriers

Decades of disinvestment in affordable housing and restrictive zoning laws have prevented the creation of new, lower-cost units. In many communities, it is still illegal to build duplexes or apartments, limiting housing choices and keeping prices high.

3. Corporate Ownership and Speculation

Institutional investors and hedge funds have flooded the housing market, purchasing large numbers of homes and converting them into high-rent units or short-term rentals. These speculative practices reduce supply, drive up prices, and displace long-term residents.

4. Pandemic Fallout

COVID-19 devastated low-income renters. Temporary protections like eviction moratoriums and rental assistance programs prevented catastrophe—but their expiration has left many vulnerable again. Housing insecurity surged as incomes dropped and housing prices jumped.

5. Climate Change and Displacement

Climate disasters—from wildfires to floods—are destroying housing stock and forcing internal migration. At the same time, “climate gentrification” is pushing low-income families out of areas deemed more climate-resilient, raising urgent questions about housing equity in the era of environmental disruption.

Connecticut: A State in Crisis

Though Connecticut is one of the wealthiest states in the U.S., it is also home to stark inequalities—and an intensifying housing crisis:

• Housing prices rose 9.6% from Q1 2023 to Q1 2024, outpacing the national average.

• Vacancy rates hover at 3.5%, well below the national average of 6.6%, driving up costs.

• Rent burden affects over 50% of renters earning below 50% of the area median income.

• Waiting lists for affordable units can span years, with many never gaining access.

Marginalized communities—including people of color, immigrants, and low-wage workers—are disproportionately affected. In cities like Stamford, Bridgeport, and New Haven, families are pushed out of neighborhoods they’ve called home for generations.

State-Level Responses and Challenges

Connecticut has taken meaningful, though often incremental, steps toward addressing the crisis:

Policy and Legislative Proposals

Governor Lamont introduced a plan to encourage municipalities to create “priority housing zones,” designating at least 10% of developable land for affordable units. Zoning reform has also been debated in the General Assembly to promote multi-family housing and transit-oriented development.

State Grants and Renovation Funds

The state allocated $12.8 million to upgrade low- and moderate-income housing, focusing on energy efficiency, safety, and ADA compliance.

Federal Support and HUD-Backed Programs

Through the Community Development Block Grant Small Cities Program, municipalities are accessing funds for critical housing infrastructure.

Barriers to Progress

However, these efforts are constrained by deep resistance. Nearly 90% of Connecticut is zoned for single-family housing, and local “Not In My Backyard” (NIMBY) opposition remains strong. Zoning hearings are often battlegrounds between progress and preservation, equity and exclusion.

Solutions: Pathways to Housing Justice

Solving the affordable housing crisis in Connecticut—and beyond—requires more than stopgap measures. It calls for systemic reform, long-term investment, and community-centered innovation.

1. Policy Reform and Zoning Equity

• End exclusionary zoning and legalize multi-family housing in all municipalities.

• Streamline approval processes for affordable developments.

• Expand rent stabilization policies and tenant protections statewide.

2. Public and Philanthropic Investment

• Increase funding for affordable housing construction and renovation.

• Provide long-term rental subsidies and support emergency rental assistance programs.

• Fund community land trusts to de-commodify housing and preserve affordability.

3. Support for Housing Justice Organizations

• Strengthen grassroots groups advocating for tenant rights and racial equity in housing.

• Invest in nonprofits that develop and manage affordable housing.

• Build coalitions across sectors—housing, health, education, and climate—to drive holistic solutions.

4. Innovative and Climate-Resilient Housing Models

• Fund sustainable, energy-efficient housing that lowers utility costs and builds resilience.

• Support modular and community-based construction models that reduce costs and speed development.

• Prioritize developments that integrate green space, transit access, and community services.

5. Engaged Philanthropy and Civic Participation

• Encourage private foundations and corporations to fund housing justice.

• Mobilize voters, particularly renters, to support housing-forward local policies.

• Empower tenants with legal aid, organizing tools, and decision-making power in housing developments.

Foundation House’s Commitment

At Foundation House, we believe that housing is the bedrock of opportunity, health, and community. As a Center for Impact in Greenwich, CT, we integrate housing justice into our work at the intersection of environment, mental health, and community well-being.

Our Approach Includes:

1. Hosting Convenings and Programs We bring together housing advocates, developers, policy experts, and affected community members to explore solutions and co-create change. By holding space for cross-sector dialogue, we help bridge policy gaps and build momentum for action.

2. Supporting Community-Led Housing Initiatives Foundation House funds and collaborates with organizations advancing tenant rights, sustainable development, and affordable housing preservation. We prioritize partnerships with BIPOC-led, grassroots groups that bring deep lived experience and innovative strategies.

3. Investing in Sustainable Housing Solutions We are exploring investments in community land trusts, nonprofit developers, and social enterprises that are reimagining housing as a public good. These approaches align with our mission to advance regenerative and equitable models of community resilience.

4. Elevating Housing as a Justice Imperative Through education, storytelling, and convening, we advocate for a cultural shift that frames housing not as a commodity—but as a cornerstone of justice. This includes integrating housing into our work on youth mental health, climate anxiety, and economic empowerment.

A Call to Action

Addressing Connecticut’s housing crisis requires collective will and coordinated effort. Policymakers must lead with equity. Philanthropy must take risks and fund upstream solutions. Communities must be empowered to shape their own futures. And we must all confront the structural injustices—racial, economic, and environmental—that underlie the current crisis.

Affordable housing is not simply about shelter—it is about dignity, opportunity, and stability. It is the difference between a child succeeding in school or falling behind, a worker accessing a job or being forced into long commutes, a family planting roots or facing displacement.

Conclusion

The affordable housing crisis in Connecticut is both a challenge and a call to conscience. As rents rise, homelessness spreads, and communities fracture, the need for transformative solutions has never been clearer. At Foundation House, we are committed to being part of the solution—not only by supporting innovative responses, but by helping to shift the narrative from scarcity to solidarity, from exclusion to inclusion.

Together, we can ensure that housing is treated not as a luxury for the few—but as a right for all.

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Written by Human and Artificial Intelligence

© Richard Zimmerman/Foundation House 2025