Connecticut is set to see more affordable housing after Gov. Ned Lamont officially signed new legislation paving the way for growth.
The governor held a signing ceremony this week for an affordable housing bill he had signed during a special session right before Thanksgiving.
Lamont had previously vetoed the measure during the regular session back in June after it faced local opposition, but had spent months working on a new version of the bill that garnered bipartisan support.
“Over these last several months, I’ve consulted with state lawmakers, municipal leaders, housing advocates, and nonprofit partners to craft policies that will have a real-world impact and implement the tools we need to succeed in building more housing,” Lamont said in a written statement released by his office.
He said this new law takes strong steps toward addressing the state’s housing crisis.
“You’re not serious about affordability unless you’re serious about housing, and housing starts with a diversity of housing where all of our folks can afford to step up, step down, but have a place they can call home,” Lamont said at the signing ceremony, according to Hartford Business.
What’s in the housing bill
House Bill 8002 requires Connecticut towns to set goals for housing growth and how many units they’ll plan and zone for as the state works to address its housing shortage.
The housing legislation does not specify exactly how much housing that towns must provide, but requires all municipalities to have a housing plan in place.
“This bill tells mayors and first selectmen ‘What do you want your town to look like in five or 10 years? Start planning accordingly. Where do you want that housing to go? Are you going to zone accordingly? What else do you need? We want to be your partner,’” Lamont said at a press conference, according to the Connecticut Mirror.
The legislation makes it easier to convert commercial buildings into residential housing by eliminating special hearings before planning and zoning commissions, and it eliminates minimum off-street parking requirements for most new developments with up to 16 housing units.
The law, which will go into effect Jan. 1, 2026, also expands fair rent commissions and incentivizes towns to take steps to allow more housing.
California passed a similar housing bill in October to ease its severe housing crisis.
Opposition to the bill
Many Republican lawmakers and others who oppose HB 8002 claim it will override local zoning.
“Democrats have said this bill will make our state more affordable, jump-start our economy, and even billed it as a solution to homelessness,” House Minority Leader Vincent J. Candelora, R-North Branford, told the Connecticut Mirror. “When you promise everything to everyone, the reality is nobody gets what they’re expecting. The idea that giving private equity developers free rein will solve these problems is wishful thinking.”
Lamont addressed HB 8002’s critics.
“I hear what all the naysayers are saying, but it is important, and it’s key to the future of our state,” Lamont said at the signing ceremony, according to WSHU. “It gives young people the very best opportunity. And their grandparents, if they want to downsize, they can do that as well.”
Affordability crisis
Connecticut’s housing market currently faces steep affordability challenges.
“Housing has become increasingly unaffordable in Connecticut as strong demand has collided with chronically low for-sale inventory, intensifying competition and driving prices higher,” says Hannah Jones, senior economic research analyst at Realtor.com®.
The state earned an F on the Realtor.com State-by-State Housing Report Card, part of the Let America Build campaign that tracks how effectively each state balances affordability and new construction.
Connecticut earned a total score of 28.3, which placed it among the lowest-ranked states nationwide. The state’s median listing price of $499,000, paired with a median household income of $89,717, illustrates the mismatch between wages and housing costs.
The Realtor.com Affordability Score was 0.64, showing that even higher-income households are struggling to find homes within reach in this area.
In terms of construction, Connecticut accounted for just 0.4% of all new-home permits in 2024 while representing about 1.1% of the U.S. population. That yields a weak permit-to-population ratio of 0.36, signaling that the state is building far less than needed.
“Policies that remove barriers to new construction are one of the most effective ways to ease that upward pressure, because expanding the housing stock ultimately gives buyers more options and helps stabilize costs,” says Jones.