Rental Housing Summary

The Meriden market rate rental market is well established and generally stable, if not dynamic in terms of rent levels.  Market rate rental housing in the area in well-maintained buildings in good locations is perennially leased out to capacity.  Excellent access to central Connecticut employers, many located in Meriden and Middletown, supports demand for renter housing that maintain good levels of occupancy.

Like the office market, demand for rental housing is stimulated by the expansion of employment, which has been slow in Connecticut and the nation, but shows some signs of picking up going forward.  In addition, demographic trends favor rental housing starts to accommodate the emerging Echo Boom generation and to a more limited extent, their downsizing Baby Boom parents.  The rapidly growing number of one person households, a regional and statewide trend across age groups also will continue to drive demand for rental housing. 

The demographic trends point to rising demand for rental housing that represents a marketable opportunity for the subject location.  In view of the likelihood that most rental demand will be young or single individuals and couples, a mix of one and two bedroom units is the likely target mix.  The new luxury complex being built in eastern Meriden should provide guidance in terms of market rents achieved from the target market - the young professional commuter.  Absorption of units should be watched carefully for insight into developing such a market in downtown.  Additional guidance can be gathered from the successes with rental housing in other urban areas of the state, most notably New Haven.