Connecticut Mortgages, Rent Payments Out of Reach For Many
When Anne French, a native of Haiti, moved from Florida to Norwich, Conn., a couple of months ago, she had no trouble finding an apartment.
But she’s paying $950 a month for a two-bedroom apartment for her and her two children — one smaller than the one she rented in Florida for only $600 per month.
“The prices are high here,” French told the Norwich Bulletin. “But I like (my apartment). It’s clean.”
The U.S. Department of Housing and Urban Development (HUD) released fair market rent figures this month that show rents are still rising steadily in the Norwich-New London area. The fair market rent price of a two-bedroom apartment in the area rose 5.2 percent — from $815 to $857 — during the past year.
At the end of 2005, a Connecticut Housing Coalition study showed a renter would need to earn $15.67 per hour, or $32,600 annually, to afford the fair market rent in the Norwich-New London area.
And you can forget about trying to qualify for a mortgage loan on less than that. Last year, Connecticut ranked 45th of 52 in the National Low Income Housing Coalition’s study of affordable housing in U.S. states, the District of Columbia and Puerto Rico.
Norwich property manager Annette D’Antuono’s experience indicates rents may be stabilizing as the Connecticut housing market softens. She has had vacancies in about six of her 400 rental units recently. It may not seem like much, but that’s double the amount she usually has open.
“You don’t see a big glut of apartments on the market, but I know it takes me a little longer to rent an apartment. And I’m seeing a lot of rents coming down, by about $50 per month. That’s quite a reduction,” she said.
But even if rents plateau, many still remain out of reach for struggling working people. The cost of housing in the Constitution State has gone up so fast that homeownership is becoming a pipe dream for the working class.
“The percentage of people paying 50-70 percent of their monthly income (for housing) is just so significant,” said Norwich Human Services Director Bev Goulet said. “You really shouldn’t be paying more than 30-40 percent of their income on housing. That’s not even close to what’s happening.”
Dot Chinigo of Norwich said she can’t believe how high rents have gotten across the city. She has a three-bedroom apartment she rents, but said she’s always tried to keep it affordable, so that people can actually succeed in qualifying for a mortgage of their own one day.
“My only interest is renting it for enough to cover the taxes. It’s more important to have a good tenant with a lower rent,” she said. “I get furious when I see what (other landlords are) charging. … I would be embarrassed to ask for $950 a month for a three-bedroom.”
Chinigo is using the apartment to house family, but said if and when she puts it back on the market, it won’t be at a high-end rate. She wonders sometimes how young people are making ends meet with the cost of mortgages and other expenses today.
“I understand why many of them have to take roommates. Even back in my day with the rents lower, it was tough,” she said.