When it comes to retirement expenses, be aware of the big three: housing, transportation, and healthcare. Housing can be the single largest expense, accounting for a total of around one-third of all costs in retirement1. This is important if you are planning stay in Connecticut.
Housing costs can consist of rent, utilities, maintenance and other housing-related budget items. You may see a spike in maintenance costs if you need help for services such as lawn mowing and house cleaning. The good news is housing expenses can trend lower over time, as retirees downsize or find ways to lower their housing costs, see Figure 2 below.
Source: Fidelity and Consumer Expenditure Survey 2022
The bad news is housing in Connecticut is not as affordable as other states. Nationally, Connecticut ranks #41 out of all 50 states for affordability according to USA Today . Connecticut does rank higher than neighboring states Massachusetts, New Jersey, New York if that is any consolation. Interesting enough, Florida – a popular retirement destination – comes in at number 44 for housing affordability, meaning less affordable than Connecticut. At least we have that going for us!
As you might have guessed, not all real estate in Connecticut is created equal. It’s all about location. Proximity to a beach, good schools, and a nice downtown can make a house more expensive. Higher housing prices can be generally be found in lower Fairfield County, Connecticut as it is closer to New York City. Towns with a Metro North stop might have higher housing prices than other towns further out.
One nice thing about Connecticut real estate is that the housing market has held up. According to real estate website Redfin, the median sale home price in Connecticut increased 9.6% year-over-year as of May 2025.
What does all this mean? The message I want to make clear for retirees is don’t get blindsided by high housing costs in Connecticut. If you’re weighing whether to retire in Connecticut, housing costs and property taxes are important considerations. That’s where a financial planner can help.
For my Connecticut clients, planning is key. We incorporate housing expenses into retirement forecasts. Income generation is equally important. Having a portfolio that can create meaningful retirement income is crucial when living in a state with a higher cost of living. I know many retirees in Connecticut, so I know firsthand it can be a great place to live and retire, but having a financial plan can help.
To learn more or to schedule your complimentary conversation, please use my Microsoft Bookings Page.
Sources:
1. Bureau of Labor Statistics Survey - 2022