Section Image

Connecticut lawmakers pass housing bill that would supersede local zoning rules

Legislation would allow townhouses and multifamily homes in commercially zoned areas

The median sales price in Bridgeport, Connecticut, grew from $355,000 in April 2024 to $389,900 last month, according to Homes.com data. (Steve Mihalchik/CoStar)
The median sales price in Bridgeport, Connecticut, grew from $355,000 in April 2024 to $389,900 last month, according to Homes.com data. (Steve Mihalchik/CoStar)

Lawmakers in Connecticut have passed a bill allowing developers to build housing in commercially zoned areas.

The House bill adds new statewide rules regarding transit-oriented developments, parking and affordable housing structures. Most notably, the bill allows real estate developers to construct townhouses and apartment buildings on land zoned for business. The measure passed in the House and Senate last week and is on Gov. Ned Lamont's desk for final approval.

Connecticut legislators who voted yes on the bill said the zoning provision will encourage more development, adding housing to a state that needs it.

"If you live in Connecticut, you're spending a significant amount of your income right now on housing," Jason Rojas, an East Hartford Democrat who sponsored the bill, said in a statement. "This bill is but a step in the direction that is needed to adequately address what has long been a running crisis."

And by crisis, Rojas is referring to the shortage of affordable homes for sale in Connecticut — a trend state officials and outside research have quantified.

Connecticut, particularly the western part of the state, is home to many commuters who work in New York City but want a suburban lifestyle. The state population has risen steadily in recent years, but developers have not built enough homes to keep up — thus fueling demand and pushing up prices.

The state's housing shortage stems from "a pattern of chronic underproduction spanning decades," according to a May study from the Connecticut Business & Industry Association. The state is facing a shortage of 100,000 to 150,000 units, the CBIA said.

Home prices in Connecticut climb amid shortage

Home prices in Connecticut's largest cities have jumped in recent years, due in part to the housing shortage.

The median sales price in Bridgeport grew from $355,000 in April 2024 to $389,900 last month, according to Homes.com data. In New Haven, the growth was from $313,750 to $335,000 during the same period. Stamford saw its median price climb from $892,500 to $940,000.

The bill passed the Connecticut House on May 28 after 11 hours of debate with a final tally of 84-67. One of the nay votes came from Rep. Joe Zullo, an East Haven Republican who argued that the bill strips zoning law authority away from the state's towns and cities.

"The cost of this bill isn't just in the dollars; it's in the future of our municipalities," Zullo said in a statement. "If you're one of the towns in this bill that will be substantially affected, your town will change forever. My no vote reflects my commitment to transparency and protecting local control."

Other state Republicans share Zullo's criticism and argue that the bill forces all Connecticut municipalities to follow the same prescription for developing more housing.

"This bill contains provisions that erode local zoning authority, pressures towns into meeting lofty 'fair share' housing quotas, and removes longstanding parking requirements with little regard for traffic, infrastructure, public safety, or disability access," State Sen. Tony Hwang, a Fairfield Republican, said in a statement Thursday. "Let’s be clear: Connecticut must act on housing. But that action must be guided by collaboration, not coercion."

Connecticut is the latest state poised to pass legislation that supersedes local zoning control.

In New Hampshire, a similar measure would, among other things, require municipalities to allow multifamily developments in areas zoned for commercial. The bill passed in the House in March, in the Senate earlier last month, and now sits on Gov. Kelly Ayotte's desk.