East Hartford is home to the best residential real estate investment market in Connecticut.
The 06118 zip code in East Hartford presents the greatest opportunity for the best real estate investments among the 720 individual real estate markets in Connecticut we evaluated. We looked at property values, population trends, and six other metrics for each market. We used that data to calculate each market's InvestScore.
5 best places to invest in Connecticut
| Rank | City | InvestScore | Affordability | Property value appreciation |
|---|---|---|---|---|
| 1 | East Hartford | 100 | 3.7 | 66.27% |
| 2 | South Windsor | 99.5 | 3.0 | 58.20% |
| 3 | Watertown | 99 | 3.6 | 61.04% |
| 4 | Torrington | 98.8 | 3.8 | 87.75% |
| 5 | Bloomfield | 98.5 | 3.4 | 60.17% |
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1. East Hartford
We've identified the 06118 zip code in East Hartford as Connecticut's best real estate investment market. Here's why.
🔎 Key data about East Hartford
| Data point | Value | Rank in state (of 720 markets) |
|---|---|---|
| Zip code | 06118 | N/A |
| InvestScore | 100 | Highest |
| Typical property value | $276,962[1] | 24th lowest |
| Five-year appreciation | 66.27%[2] | 23rd highest |
| Household income | $74,495[3] | 141st highest |
| Affordability ratio | 3.7 | 61st most affordable |
| Five-year population growth | 4.7%[4] | 28th highest |
| Unemployment rate | 5.4%[5] | 94th lowest |
| Property taxes | $5,562[6] | 56th lowest |
| Educational attainment | 21.3%[7] | 156th highest |
East Hartford (zip code 06118) is the best residential real estate investment market in Connecticut. It has the 23rd highest property value appreciation among markets we evaluated, with a 66.27% appreciation of the typical property over the last five years.
East Hartford is the 61st most affordable market among the 720 Connecticut markets we evaluated, with an affordability ratio of 3.7.
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2. South Windsor
The 06074 zip code in South Windsor is the runner-up spot for the best real estate investments in Connecticut.
🔎 Key data about South Windsor
| Data point | Value | Rank in state (of 720 markets) |
|---|---|---|
| Zip code | 06074 | N/A |
| InvestScore | 99.5 | 2nd highest |
| Typical property value | $398,757[8] | 98th lowest |
| Five-year appreciation | 58.20%[9] | 70th highest |
| Household income | $134,080[10] | 33rd highest |
| Affordability ratio | 3.0 | 3rd most affordable |
| Five-year population growth | 3.9%[11] | 34th highest |
| Unemployment rate | 3.4%[12] | 33rd lowest |
| Property taxes | $7,352[13] | 131st lowest |
| Educational attainment | 56%[14] | 35th highest |
The 06074 zip code in South Windsor features a typical property value of $398,757, the 98th lowest in the state.
Property values have appreciated 58.20% over the past five years, the 70th highest increase among evaluated markets in the state. South Windsor homes have an affordability ratio of 3.0, the 3rd most affordable in the state.
3. Watertown
The 06779 zip code in Watertown comes in at No. 3 in our ranking of the best residential real estate investment markets in Connecticut.
🔎 Key data about Watertown
| Data point | Value | Rank in state (of 720 markets) |
|---|---|---|
| Zip code | 06779 | N/A |
| InvestScore | 99 | 3rd highest |
| Typical property value | $295,033[15] | 33rd lowest |
| Five-year appreciation | 61.04%[16] | 51st highest |
| Household income | $81,686[17] | 125th highest |
| Affordability ratio | 3.6 | 51st most affordable |
| Five-year population growth | -2.7%[18] | 125th highest |
| Unemployment rate | 2.1%[19] | 7th lowest |
| Property taxes | $4,843[20] | 29th lowest |
| Educational attainment | 31.3%[21] | 129th highest |
With a typical property value of $295,033, Watertown's 06779 zip code features the 33rd lowest property values in the state.
Watertown homes have an affordability ratio of 3.6, the 51st most affordable among the markets we evaluated.
4. Torrington
The 06790 zip code in Torrington ranks No. 4 among Connecticut's residential real estate investment markets.
🔎 Key data about Torrington
| Data point | Value | Rank in state (of 720 markets) |
|---|---|---|
| Zip code | 06790 | N/A |
| InvestScore | 98.8 | 4th highest |
| Typical property value | $254,610[22] | 15th lowest |
| Five-year appreciation | 87.75%[23] | 8th highest |
| Household income | $66,762[24] | 8th highest |
| Affordability ratio | 3.8 | 77th most affordable |
| Five-year population growth | 1.5%[25] | 62nd highest |
| Unemployment rate | 5.8%[26] | 111st lowest |
| Property taxes | $5,091[27] | 38th lowest |
| Educational attainment | 24.6%[28] | 148th highest |
Property values in Torrington's 06790 zip code have seen the 8th highest increase among evaluated markets in the state, with an appreciation of 87.75% over the past five years.
Torrington's affordability ratio of 3.8 makes it the 77th most affordable among the 720 markets we evaluated.
5. Bloomfield
The 06002 zip code in Bloomfield rounds out our top five residential real estate investment markets in Connecticut.
🔎 Key data about Bloomfield
| Data point | Value | Rank in state (of 720 markets) |
|---|---|---|
| Zip code | 06002 | N/A |
| InvestScore | 98.5 | 5th highest |
| Typical property value | $308,966[29] | 46th lowest |
| Five-year appreciation | 60.17%[30] | 59th highest |
| Household income | $90,061[31] | 59th highest |
| Affordability ratio | 3.4 | 39th most affordable |
| Five-year population growth | 2.9%[32] | 45th highest |
| Unemployment rate | 4%[33] | 47th lowest |
| Property taxes | $5,991[34] | 72nd lowest |
| Educational attainment | 38.2%[35] | 107th highest |
Property values in Bloomfield's 06002 zip code rose 60.17% over the last five years, ranking the city 59th highest among evaluated markets in Connecticut.
Bloomfield homes have an affordability ratio of 3.4, the 39th most affordable among the markets we evaluated.
Investing in residential real estate can be one of the best passive real estate investments in Connecticut.
Residential real estate offers accessible passive income and the potential to compound your original investment.
Renting out residential units is the top way to invest in real estate. House hacking also offers a great opportunity for passive real estate investment income.
How we rank residential real estate markets in Connecticut
To determine the best real estate investments in Connecticut we evaluated 720 markets on eight metrics, and then assigned an InvestScore based on their weighted and combined rankings. Each market corresponds to a specific zip code in Connecticut.
What is InvestScore?
InvestScore is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the residential real estate investment potential of a given market. It takes into account a suite of key data points for each city.
- Typical property value: This measures the typical home value in this zip code, according to the Zillow Home Value Index. It reflects the typical value for homes in the 35th to 65th percentile range, including all homes, with the numbers smoothed and seasonally adjusted. We prefer lower property values, which indicate both more room for growth and a greater ease of purchase. We assign a weight of 20% to typical property values.
- Property value appreciation: This measures how much property values have increased in the area over the past five years, according to the Zillow Home Value Index. We prefer a higher appreciation, as it indicates better returns on housing. However, past performance isn't indicative of future results. We assign a weight of 20% to property value appreciation.
- Median household income: This is the inflation-adjusted median household income in the zip code, according to U.S. Census American Community Survey data. We prefer a higher household income, as it indicates local residents have more income to spend on housing. We assign a weight of 10% to median household income.
- Affordability ratio: This is the ratio of the typical home value to the median household income in the area. A lower ratio is better because it means more households can afford a home, which indicates higher demand. We assign a weight of 15% to the affordability ratio.
- Population growth: This is how much the area's population has grown over the past five years, according to U.S. Census estimates. Higher is better, as it indicates residents are moving into the area at a rapid clip. We assign a weight of 10% to population growth.
- Unemployment rate: This is the unemployment rate in the area, according to U.S. Census data. We prefer a lower rate, as it indicates the availability of steady employment in the area, meaning residents will find it much easier to afford homes. We assign a weight of 15% to unemployment rate.
- Property tax: This is the median real estate property tax paid in the area, according to U.S. Census estimates. We assign a weight of 10% to property tax.
- Educational attainment: This is the percentage of residents in the area that have obtained a bachelor's degree or better, according to U.S. Census estimates. We prefer a higher rate because it indicates local residents who have higher earning potential and thus should be able to afford homes. We assign a weight of 15% to educational attainment.
🚨 Disclaimer: The information contained in this article isn't intended as, and shall not be understood or constituted as, financial advice. The information in this article isn't a substitute for financial advice from an investment professional or real estate agent who is aware of the facts and circumstances of your financial situation or the specifics of any individual property.
