Economic Impacts of Land Use Regulations in Connecticut

The State of Connecticut is facing structural headwinds that threaten the ability for its residents, taxpayers, and businesses to thrive. One of these structural challenges is Connecticut’s land use regulations, which have restricted housing supply, increased housing prices, and limited economic growth.

As local zoning codes have resulted in a lack of affordable housing for Black, Indigenous, People of Color (BIPOC) and widespread segregation by race and income, Connecticut has the opportunity to reform land use regulations, not only to right these historical inequities, but to also improve the state’s economic outlook and place it on more solid fiscal footing in the aftermath of the COVID-19 pandemic.

The State of Connecticut should use this moment as an opportunity to enact land use reforms that will increase housing supply, decrease housing prices, and lead to a more economically just and stable Connecticut. As an initial next step, this report describes how including the dimension of economic impact and growth in the analysis of land use regulations and development processes can help further this goal.