Angel Garcia, a single father approved for a $ 300,000 mortgage, had high hopes in early 2020 to find a home he could afford in his hometown of Stamford, Connecticut.
Then the COVID-19 pandemic struck. Within months, New Yorkers began fleeing the city and its surroundings, building houses. Home prices, which were already out of reach for many, have risen. Garcia, who oversees security at Stamford’s government building, ended the year still living with his 3-year-old daughter on a rental in Stamford.
“It’s so hard with all the competition here and the prices, as they are now. They were already expensive, “said Garcia, who has a second job as a security guard.
An influx of people who have moved into the state, and especially into Fairfield County on the New York State Line, has been celebrated by many, including Governor Ned Lamont, who said last week in his State of the Union address. state that it showed a desire for more spacious living facilities and an appreciation of “Connecticut values.”
But it has also made it more difficult for many to find affordable housing in an area that ranks among the most unequal places in the country in terms of income levels.
A shortage of affordable housing is exacerbated by newcomers who often buy homes quickly and in cash, said Joan Carty, president and CEO of the Stamford Housing Development Fund, a nonprofit that funds housing development in Stamford. affordable and offers loans to home buyers for the first time.
“It simply came to our notice then. And it makes, I think, the level of inequity more obvious, “she said.
One day at the end of last month, there were only five single-family homes for sale under $ 400,000, with the lowest price at $ 325,000 in Stamford, which is 134 square miles and is considered more affordable than other communities in Fairfield County. said Tammy Felenstein, executive vice president and chief sales officer at Brown Harris Stevens Connecticut LLC in Stamford.
“Hear stories: ‘Oh, this couple lost three houses. They were overbidding every time. And that is definitely happening, “said Felenstein. She said her brokers are “dying for inventory” in Stamford, a place that may seem like a business to many in New York.
In metropolitan areas across the country, big city residents have moved to smaller cities this year, according to Updater, a relocation technology company that has tracked national trends moving during the pandemic. Connecticut has seen more people move into it than from it for the first time in three years, according to Updater, which said Stamford is the top destination for relocating New York.
Thomas Madden, director of economic development for Stamford, said that in the usual month before the pandemic, there were home sales of between $ 80 million and $ 110 million. It reached $ 146 million in August, $ 152 million in September and $ 157 million in November.
“It’s crazy,” he said. “Prices have gone up and sales have gone up.”
Lamont, a Democrat, noted in his speech the benefits of the influx.
“There are many reasons why young families and new businesses give us a second look and choose Connecticut,” Lamont said, suggesting that people might be drawn to state schools, city centers and cities that offer “some of the best and most safe outdoor dining experiences. in the country ”or the ability to be quarantined in a small yard, rather than in a small apartment.
“Whatever the reason,” Lamont said, “tens of thousands of young families have moved into the state for the first time in a generation because they recognize and appreciate our Connecticut values.”
In the same address, he undertook to extend “his administration’s commitment to affordable housing”.
Max Reiss, the governor’s spokesman, said that while Lamont believes a competitive housing market is good for the state’s general economy, he does not believe access to property should be out of reach due to a housing boom. and therefore supports adequate funding for state housing assistance programs.
Stamford Mayor David Martin, a Democrat, said more rental options would be available soon and noted pressure to complete the construction of apartment complexes that were approved before the pandemic hit. City zoning rules require at least 10% of all new complexes with 10 or more units to be accessible.
“I am looking forward to building those buildings, because now it is an attractive market. And when they are online, it will offer some more affordable units, “he said. “In fact, we’ve built more affordable units in the last five to 10 years in Stamford than any other municipality in the state.”
Prior to the pandemic, 38 percent of Fairfield County residents spent more than half of their monthly income on housing, said Mendi Blue-Pace, chief community impact officer at the Fairfield County Community Foundation. While the current trend is likely to decrease more potential buyers, Blue-Pace has expressed optimism for new residents who will have a positive impact.
“There is hope that there is a new set of people who can be involved in philanthropy, potentially,” she said. “We would definitely like to connect with many of these new residents who are moving to the county and who might have an interest in addressing social issues and taking some of their disposable income and directing it to all the needs that exist in the county. . ”