Growing challenges to find and afford starter homes in Connecticut

It can be especially daunting for those considering buying their first home and to see the costs surging.

Karess Cannon is ready to stop renting and is searching for her first home somewhere in central Connecticut.

“I realize there's no perfect time, but as rents keep going up, it just makes sense to actually be putting money into something that I own,” Cannon said.

For many buyers, it’s becoming harder to find and afford a starter home – those in the bottom quarter of sales.

Starter prices here in Connecticut have skyrocketed about 50% from 2019 to 2024, according to Realtor.com.

The average starter home going from about $263,000 to then hitting $390,000.

Cannon has been saving and while she hasn’t been priced out of the current market yet, it still has its surprises.

 “Like the listings, the reality of what's out there right now, how does that contrast with your expectations going into the process?” NBC Connecticut’s Matt Austin asked.

“Yeah, I mean, I think it's just kind of knowing that X amount of dollars isn't going to get you X amount house. Like that's been the biggest management and being like, what things do I really need versus wants,” Cannon said.

When it comes to the costs, experts recommend buyers keep their mortgage payments to less than 30% of their income.

That means to afford the average starter home in the state, someone needs an income of about $93,000.

That’s gone up a lot recently amid a rise in prices and mortgage rates.

“You put those two things together and affordability starts to feel less and less attainable,” said Rachael Cisz, of Berkshire Hathaway Home Services New England Properties.

Cisz says with lower supply these past few years starter homes are in high demand.

It’s all adding up and last year only 24% of successful homebuyers were first-timers – the lowest on record.

Cisz tries to prepare her clients for searching in this market.

“I think it is all about setting the expectations both for what the process is going to look like and also kind of showing them firsthand. Here's what your money can buy you, you know, in different towns, different types of properties,” Cisz said. “I'm always stressing to them, 'you know, you might want this in a house, but you need to remember this isn't your forever home. It's just getting you into the market.'”

Cisz also reminds hopeful homeowners there is help for first-time buyers, including state assistance with a down payment.