Data Shows Large Rent Increases in New Britain

Staff Reports

Data from the federal Department of Housing and Urban Development (HUD) points to hefty increases in rental housing in New Britain. HUD data appears to show rent levels in New Britain growing dramatically in the past few years, confirming anecdotal accounts of rent increases that people are experiencing. According to one New Britain landlord, affordable units even for individuals qualifying for federal Section 8 vouchers are extremely scarce.

HUD notes that its data on Fair Market Rent (FMR) levels, “published annually, are an estimate of the amount of money that would cover gross rents (rent and utility expenses) on 40 percent of the rental housing units in an area.” So, the rent levels would be less than the average.

Efficiency apartments in the fortieth percentile of the HUD data went from $664 per month in 2013 to $920 in 2023, while one-bedroom apartments increased from $832 in 2013 to $1,107 in 2023. Between 2013 and 2023, the fortieth percentile rent for two-bedroom apartments went from $1,037 in to $1,373. A three bedroom went from $1,292 in 2013 to $1,670 in 2023 and a four-bedroom apartment went from $1,501 per month to $2,040.

The data shows rent levels relatively stable between 2013 and 2019. Since then, however, the data shows a substantial spike upward in rent levels.

HUD says that the purpose of its Fair Market Rent data is for programs that help households with HUD funded, “housing vouchers to access affordable, stable housing,” and that the data is revised to keep up with rent increases.

The data appears consistent with increases in rents paid by tenants in other places, and HUD Secretary Marcia L. Fudge noted in September that, “One of the reasons that housing voucher holders are unable to use those vouchers is because the value of their vouchers has not kept up with rapid rent increases. These new FMRs will make it easier for voucher holders facing this challenge to access affordable housing in most housing markets, while expanding the range of housing opportunities available to households.”

Federal rental assistance provided through the state offered substantial help to New Britain residents during the pandemic. The state Department of Housing had said that the program distributed $11,295,305 in assistance to New Britain residents, assisting in 2,666 cases in the city in a program designed to provide, “up to $15,000 rental and electricity payment assistance on behalf of Connecticut households financially impacted by the COVID-19 pandemic.” But that program was ended in 2022.

There has been a statewide push for limits on rent increases. Legislation being pressed by a statewide “Cap The Rent” coalition is pressing for a law to limit annual rent increases to 3%. The effort is being supported by Connecticut Democratic Socialists of America (CTDSA), tenant unions, Service Employees International Union locals (SEIU) including the Congress of CT Community Colleges (4Cs) and District 1199 Health Care Workers. The Legislature’s Housing Committee has held hearings and is considering bills to address the affordable housing crisis and how to balance the rights of landlords and tenants.

Local organizing on the issue of housing, rent levels and other issues in New Britain has been occurring, and Alderman Aram Ayalon (D-3) has been raising questions about why the New Britain Fair Rent Commission, part of the administration of Mayor Erin Stewart (R), has not met in years and appears to handles administratively without using the powers of the fair rent ordinance.