Hartford Business Journal

HARTFORDBUSINESS.COM | FEBRUARY 9, 2026 13 "Connecticut makes it harder to build than other states do," Horowitz said. "There's a reason Connecticut ranks 49th out of 50 states in permit- ting new homes. And the reason is Connecticut has more regulatory barriers. These are mostly enacted at the local level." State reforms and local impacts In response, state lawmakers have begun trying to address those housing barriers. Horowitz said Connecticut adopted a "strong" housing reform package in November, but cautioned that further changes to allow higher-density housing are still needed. The law requires communities to develop housing growth plans and includes a mix of mandates and incentives. It drew strong support from Democratic lawmakers and Gov. Ned Lamont, but faced oppo- sition from some Republicans and other groups that argued it weakens local control and adds new burdens for municipalities. While many provisions focus on multifamily housing, the law also includes incentives for single-family construction, including expanded homebuyer assistance, requirements that manufactured housing be treated the same as similar resi- dential developments under zoning, and an expansion of the Healthy Homes grants program to cover contamination issues such as radon and asbestos. Builders, however, say more direct action is needed to jump-start starter-home construction. The Home Builders & Remodelers Association of Connecticut (HBRA) is urging lawmakers to adopt a bill this session promoting smaller, lower-cost homes through higher allowable density and tax incentives, said Jim Perras, CEO of the association. HBRA is proposing that towns allow, as of right, development of eight houses or 10 town houses per acre in areas served by public sewer and water. The projects would not require public hearings but would still undergo municipal staff review. In return, at least 20% of homes in these developments would be sold at prices capped at four times 120% of the area median household income. Under the proposal, resale price limits would begin easing in year six of ownership and expire after 10 years, allowing buyers to gradually build equity. The association also wants to offer builders a 25% state income tax credit to help cover the cost of extending sewer and water infrastruc- ture to development sites. Perras said current zoning restric- tions and cost pressures have pushed many builders away from single- family projects and toward small- and midsize multifamily rentals. "You talk to any builder, and they'll tell you we don't want to build McMansions, we don't want to build 2,000- or 3,000- or 4,000-square- foot houses on 3-acre lots," he said. "But that's the model they have to work with because municipalities aren't allowing them to build smaller houses on smaller lots." 'Important social issue' Natuzza Dimasi, a sales associate with William Raveis' Middletown office who is set to market Haubrich's planned Eastwood Crossing subdi- vision, said statewide demand for reasonably priced homes among first-time buyers is strong. But between January and October of last year, only 30% of the 5,944 housing permits issued statewide were for single-family homes, Dimasi said. "That tells us they are saturating the market with rentals and these first-time homebuyers are having such a hard time getting a home for their family," Dimasi said. "Matt's concept will build quite a few houses and make them affordable for a first-time homebuyer." Guido Volpati, owner of Volpati Homes, said most of his business has centered on custom houses. He is working with Haubrich on a 3,000-square-foot custom farmhouse in Meriden that drew a buyer willing to pay about $700,000 just two days after it hit the market, he said. Additional upgrades requested by the buyer will raise the final price further. Volpati said he expects rising demand for more modest, attainable homes, noting there are only so many buyers who can afford the $600,000 to $1 million price range that domi- nates today's new-home market. "There are plenty of people out there with money, but there are more people who need more affordable houses," Volpati said. He said building multiple homes in a subdivision like the one proposed in East Hartford allows for bulk purchasing of lumber, roofing and other materials, lowering costs. Additional savings can come from using less expensive — but durable — fixtures, such as fiberglass tubs. Factory-built roof trusses, rather than hand-cut supports, also speed construction and reduce expenses, he said. Haubrich said he estimates his subdivision will take three to four years to fully build out. He is also considering another start- er-home development on a nearby site, featuring smaller homes of 1,000 to 1,500 square feet with rear-facing garages. The concept would appeal to empty-nesters, older buyers and others seeking a close-knit commu- nity, Dimasi said, adding that she receives frequent inquiries from buyers looking for smaller homes. Although Haubrich's previous proj- ects focused on higher-end homes, he said he hopes to make a practice of building at lower price points. "I see this as becoming a more and more important social issue of our time," Haubrich said. "We need to have people who can live and work in the same community and not be pushed further and further out from job centers. The challenge is keeping the cost within the reach of first-time homebuyers." " Together, we are United to End Poverty. " Eric Harrison - President and CEO, United Way of Central and Northeastern Connecticut United to End Poverty Closing gaps. Creating opportunities. Scaling impact. Scan to make a difference Jim Perras NUMBER OF ANNUAL SINGLE-FAMILY HOME PERMITS ISSUED IN CT 1995 1998 2001 2004 2007 2010 2013 2016 2020 2022 2024 NEW HOUSING PERMITS ISSUED IN CT IN 2025 65.5% 30.3% 1.9% 2.3% Note: The data include new housing permits issued from January through October 2025. Source: U.S. Census Bureau SINGLE FAMILY 5 UNITS OR MORE 2 UNITS 1,802 110 136 3 AND 4 UNITS 3,896 2K 4K 6K 8K 10K 0

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