Moving to Connecticut? Make sure you have a good idea of what you’re getting into before you’re too far along.
Most families’ biggest expenses are related to housing. Luckily, housing costs are easy to budget for. You can figure out how much you can afford to pay for a monthly mortgage, property tax, and homeowners insurance, and plan accordingly.
For buyers moving to a new area, an experienced, local real estate agent can be an invaluable resource. Your real estate agent can help you set realistic expectations — not only in terms of home purchasing costs, but also other region-specific experiences you’ll need to consider.
Thinking about buying a home in Connecticut? Here’s what you need to know.
Typical Home Prices in Connecticut in 2019
The real estate market in Connecticut is hot, but prices in most of the state are still reasonable. July 2019 data from Zillow places the median home value in Connecticut at $243,600 — around $20,000 higher than the national average. Statewide, home values are up 1.5% over the last 12 months and are expected to increase another 0.4% over the next 12 months.
Of course, where in Connecticut you make your home will impact its price. Like all states, home values fluctuate depending on where you’re located. A median home in Stamford will set you back $460,300, while a median home in Hartford is just $100,000.
The time of year you buy can also have an effect on your home’s ultimate cost. The spring and summer months see the most variety, but they also see the highest sales prices. If you’re looking for a great deal, try looking in the late fall and winter, when there are fewer houses on the market but also fewer people looking to buy.
Learn More: Connecticut Real Estate Market Trends in 2019
How Much Are Connecticut Property Taxes?
Property tax amounts vary widely depending on where in the country you live. But wherever you live, your property taxes will help pay for important things in your area, like roads, schools, and parks.
After your mortgage, your property taxes are among the biggest costs associated with homeownership. The average tax rate in Connecticut is 2.02%, but your exact rate will depend on where in the state you live, as counties and cities charge their own property tax.
The effective property tax rate in Hartford is 2.038%. For a median Connecticut home, worth $243,600, that adds up to $5,798 per year. The effective tax rate in Torrington, on the other hand, is 1.755%, or $4,265 annually.
Average Homeowners Insurance in Connecticut
Buying a house is an investment and one way to protect that investment is to get homeowners insurance. Homeowners insurance is an important part of owning a home. That way, if the unexpected happens, you’ll have something to fall back on.
The average annual cost of homeowners insurance in Connecticut is $902, which $326 below the national average. Of course, your exact premium will depend on the type of coverage you choose and the value of your home.
When choosing your homeowners insurance, you need to decide whether you want a lower monthly premium and a higher deductible or a higher monthly bill and a lower premium in the event of an incident.
Common Home Maintenance and Repair Costs in Connecticut
Home maintenance and repair are other things to budget for. When you’re a homeowner, you have to pay for everything that you would rely on your landlord for as a renter. If you aren’t careful, one leaky faucet can send your finances spiraling.
Luckily, if you plan ahead, you can protect yourself and your home. Many experts suggest setting aside between 1% and 3% of your home’s value each year for repair and maintenance costs. If you have a median Connecticut home worth $243,600, that’s between $2,436 and $7,308 each year, or somewhere in the range of $203 to $609 per month.
Connecticut has cold winters and hot summers, so it’s important to keep your HVAC system in good condition. An annual checkup will cost a couple hundred dollars, but if your heater goes out in January, you’ll have to be ready to shell out a few thousand.
Other Costs of Living in Connecticut to Consider
In addition to your housing costs, think about utilities. As a homeowner, you’ll pay your utilities. Gas, electric, sewer, refuse, and water bills will all be up to you. These can be anywhere from a couple of hundred dollars a month to a few thousand, depending on how big your home is and how you keep the temperature inside.
Of course, housing costs aren’t the only costs of living you’ll have to consider. Make sure to budget for all of your necessities, including food, transportation,
Healthcare is also a major expense for many American families. Know your insurance situation and make sure you’ve saved for all healthcare-related costs you can anticipate.
Find a Top Connecticut Real Estate Agent
If you’re trying to figure out how much it will cost to live in Connecticut, try talking to a local real estate agent. Local agents can help you budget for everything from a mortgage to homeowners insurance to property taxes and more.
Clever Partner Agents are all top-rated and know their local markets. They can help you find a home in your price range and save you money every step of the way. They also offer their clients a Home Buyer Rebate of $1,000 or up to 1% on homes over $500,000.
Contact us today for a free, no-obligation consultation.