Danbury, CT Real Estate Market Update
The real estate market in Danbury, Connecticut, has experienced notable shifts over the past year, characterized by rising home values, increased buyer competition, and ongoing development projects. As of February 2025, the median sale price for homes in Danbury reached $492,000, marking a 10.1% increase compared to the previous year. Homes are selling faster, with an average of 41 days on the market, down from 43 days last year. Despite these positive trends, the number of homes sold slightly decreased from 36 to 35 during the same period.
The demand for housing in Danbury continues to outpace supply, leading to competitive market conditions. In 2024, listings grew by 16% and sales increased by 7%, yet buyer interest remains high. The inventory of single-family homes rose by 27%, while condominium inventory saw a modest 12% increase. This imbalance has resulted in multiple offers on well-priced properties, underscoring the need for more housing options to meet demand.
Several development projects are underway to address the housing shortage and accommodate the growing population. On Danbury’s west side, the city approved the construction of 177 new homes within the Reserve area, including 113 single-family homes and a 64-unit townhouse project, both designed for residents aged 55 and older. These developments are part of a master plan for 2,180 homes, with prices starting at $850,000. Additionally, 360 new apartments are being created at the Summit, with the first phase completed this year and the second phase planned for next year.
In the neighboring town of Bethel, a proposal for six two-bedroom duplex apartments near the Danbury border aims to revitalize the area and provide affordable housing options. This plan utilizes a state law that allows increased housing density in exchange for designating 30% of the units as affordable, reflecting efforts to address affordability concerns in the region.
Despite these developments, challenges persist. High mortgage rates and cautious buyer behavior have influenced the market, with some potential buyers holding off on purchases. Additionally, the median home price in Danbury has escalated by over 23% since before the pandemic, reaching $456,456 as of November 2024.
In summary, Danbury’s real estate market is dynamic, with rising home values and active development projects shaping its landscape. While demand continues to exceed supply, ongoing construction and proposed developments aim to provide more housing options for residents. As the market evolves, prospective buyers and investors should stay informed about trends and opportunities within this vibrant Connecticut community.
