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There's a the age old question everyone thinks about when they decide to move to a city in Connecticut:
Should I buy a place or rent? Well, we aren't here today to solve that problem for you exactly. We are just assuming you'll do the right thing and a buy a place. And while we are happy to tell you the best place to live in Connecticut, this analysis is going to tackle the question of the best place to buy a house as an investor. That is we are going to try and determine the up and coming cities in the Constitution State.
To do that we are going to look at places in Connecticut that are growing faster than average, but where home prices are below average. In every day terms, the "deals". The best deal in Connecticut at the moment? That would be Groton according to our analysis.
Here's a look at the top ten places to buy a home in connecticut for 2020:
- Groton (Photos | Homes For Sale)
- Derby (Photos | Homes For Sale)
- Ansonia (Photos | Homes For Sale)
- New London (Photos | Homes For Sale)
- Naugatuck (Photos | Homes For Sale)
- Torrington (Photos | Homes For Sale)
- Norwich (Photos | Homes For Sale)
- Shelton (Photos | Homes For Sale)
- Middletown (Photos | Homes For Sale)
- Milford (Photos | Homes For Sale)
What's the best place to buy a home in Connecticut for 2020? According to our analysis, would the the ideal place to buy a home looking into the future.
The methodology that wen't into this can be a bit complicated, so we'll break it down for you in as much detail as we can below. If you're not worried about finding a deal on good places to live, check out the most expensive places to live in connecticut and, for those of you on a budget, the cheapest places to live in connecticut.
For more Connecticut reading, check out:
- 10 Best Places To Raise A Family In Connecticut
- These Are The 10 Best Places To Retire In Connecticut
- These Are The 10 Richest Cities In Connecticut
The 10 Best Cities To Buy A House In Connecticut For 2020
Groton was established in 1705 when it separated from New London, Connecticut.
Derby was settled in 1642 as an Indian trading post under the name Paugasset. It was named after Derby, England, in 1675.
The area along the Naugatuck River, comprising the present Elm Street section of Ansonia and Derby Avenue section of Derby, was first settled by English colonists in 1652; it was originally a part of the township of Derby. Early settlers developed subsistence farming, and used the river for sawmills and gristmills.
The area was called Nameaug by the Pequot Indians. John Winthrop, Jr. founded the first English settlement here in 1646, making it about the 13th town settled in Connecticut. Inhabitants informally referred to it as Nameaug or as Pequot after the tribe. In the 1650s, the colonists wanted to give the town the official name of London after London, England, but the Connecticut General Assembly wanted to name it Faire Harbour. The citizens protested, declaring that they would prefer it to be called Nameaug if it couldn't be officially named London. The legislature relented, and the town was officially named New London on March 10, 1658.
Naugatuck was settled in 1701 as a farming community in rural western Connecticut. As the Industrial Revolution commenced, Naugatuck was transformed into a hardscrabble mill town like its neighbors in the Naugatuck Valley.
Torrington was first settled in 1735 by Ebenezer Lyman, Jr., of Durham, Connecticut. Its early settlers resided on the hills west of the Naugatuck River where the first school, church, store, and tavern were constructed. Later, the eastern hill known as Torringford was settled, as it provided the best farmland. Torrington was given permission to organize a government and incorporate as a town in October 1740.
Norwichtown was founded in 1659, by settlers from Old Saybrook led by Major John Mason and Reverend James Fitch. They purchased the land "nine miles square" that would become Norwich from the local Native Mohegan Sachem Uncas. In 1668, a wharf was established at Yantic Cove. Settlement was primarily in the three-mile area around the Norwichtown Green. The 69 founding families soon divided up the land in the Norwichtown vicinity for farms and businesses.
Shelton was settled by the English as part of the town of Stratford, Connecticut, in 1639. On May 15, 1656, the Court of the Colony of Connecticut in Hartford affirmed that the town of Stratford included all of the territory 12 miles inland from Long Island Sound, between the Housatonic River and the Fairfield town line. In 1662, Stratford selectmen Lt. Joseph Judson, Captain Joseph Hawley and John Minor had secured all the written deeds of transfer from the Golden Hill Paugussett Indian Nation for this vast territory that comprises the present-day towns of Trumbull, Shelton and Monroe. Shelton was split off from Stratford in 1789, as Huntington. The current name originated in a manufacturing village started in the 1860s named for the Shelton Company founded by Edward N. Shelton-also founder of Ousatonic Water Power Company. The rapidly growing borough of Shelton incorporated as a city in 1915 and was consolidated with the town of Huntington in 1919 establishing the present city of Shelton.
The land on the western bank of the Connecticut River where Middletown now lies was home to the Mattabesett Native Americans ; the area they inhabited-now Middletown and the surrounding area-was named after them. At the time the first European settlers arrtived in the region, the Mattabesetts were a part of the group of tribes in the Connecticut Valley, under a single chief named Sowheag.
The land which today comprises Milford, Orange and West Haven was purchased on February 1, 1639 from Ansantawae, chief of the local Paugussets by English settlers affiliated with the contemporary New Haven Colony. Originally, the area was known as "Wepawaug", after the small river which runs through the town, and which has given its name to several streets in both Milford and Orange.
How do you determine the best places to buy a home in connecticut for 2020?
We were in real estate for almost five years and have been working on this site for another three. Suffice is to say, we've put a lot of thought into what goes into finding a good place to buy a home.
So all that thinking has come to this moment where we get to spell out how we'd approach finding an up-and-coming place to live in Connecticut. Put differently, the analysis will try to find places in Connecticut with undervalued homes relative to pent up demand.
To do that we looked at the most recent American Community Survey Census data for 2014-2018 and compared it to the previous vintage (2012-2016). Specifically, we used the following criteria:
- Y-o-Y Change In Population (People want to live here)
- Y-o-Y Change In Median Home Prices (People are willing to pay for it)
- Home Prices Relative To The State Average (It's still kinda cheap)
We want places that are growing, have seen home prices increase in recent years, and are still "cheap" for Connecticut with the following caveats:
- Home prices had to be within 20% of the state average (Much lower than that and you get to some of the more dangerous places)
- Home prices increased in the last year, and
- Above 5,000 people (Bigger cities have more data points)
So of the 0 cities and towns in Connecticut, only 21 places made it through our initial filters to even be considered.
We then ranked each place from 1 to 21 for the criteria mentioned above with 1 being the best for that criteria. We averaged the rankings to create a "best place to buy" index with the place having the lowest index being the best. You can download the data here.
Turns out that Groton is the best potential gem in the not-so-rough in the Constitution State.
Read on for more on these places.
There You Have It - The Best Places To Purchase A House In connecticut for 2020
There's our analysis of the best places to buy a house in Connecticut. And, to be clear, we aren't necessarily saying these places are the best places to live, just that it looks like they might be in a couple of years based on the data.
In fact, every place in the following table meets our criteria, so even though it may not look super long, remember we started off with all 0 places in the state.
So if we'd could rent or buy in these cities, we'd definitely buy.
For more connecticut reading, check out:
Detailed List Of The Best Places To Buy A Home In Connecticut