These 2 Connecticut towns lead the state in new-home construction

It is a big bet for both new and established homebuilders: construct a speculative, or "spec," house on the assumption that a buyer will emerge willing to pay enough to leave the developer with a healthy profit.

If Zillow listings are any indication, two Connecticut towns stand out for speculative single-family home construction, with several others also posting surprisingly strong numbers during an era when residential development has tilted heavily toward apartments.

Nearly 100 newly built houses in Westport were either sold during the 18 months through June or were actively being marketed entering July, according to a CT Insider analysis of Zillow listings data. The total includes homes that are currently under contract.

The numbers exclude homes built on commission for landowners planning to live in them rather than list them through the SmartMLS or Greenwich MLS multiple listing services. That likely understates construction activity in affluent communities where buyers can afford custom-built homes. Earlier this month, for example, a Greenwich property owner drew attention after filing plans for a mansion with underground parking for 40 vehicles.

Neighboring Fairfield ranked second with 70 newly built homes. Combined, Westport and Fairfield accounted for about 12% of all newly built homes listed on Zillow across Connecticut's 169 municipalities during the past 18 months.

Several factors have made the two towns among Connecticut's strongest markets for new single-family home construction, according to Bob Hebert, a Ridgefield real estate investor and developer who is CEO of Hebert Partners.

The biggest is demand. Both communities continue to attract buyers from New York City and lower Fairfield County, many seeking coastal living, highly rated schools and Metro-North access. With inventories of existing homes remaining near historic lows, builders have stepped in to meet demand that the resale market cannot, Hebert said.

"It's a reflection of a convergence of market forces that make these towns uniquely positioned to absorb - and attract - significant development activity," Hebert told CT Insider. "Buyers are willing to pay premiums for modern layouts, energy-efficient systems and turnkey living. That willingness makes new construction financially viable even when land costs are high or projects involve teardowns rather than vacant parcels."

Westport's zoning policies have also helped fuel redevelopment by allowing older homes to be demolished and replaced with larger ones, expanding the tax base while creating opportunities for builders.

"Older homes on large lots are frequently replaced with modern homes, allowing construction to continue even without large tracts of undeveloped land," Hebert said.

Those forces left Westport and Fairfield with the state's highest concentrations of newly built houses, at nearly five homes per square mile in Westport since January 2025 and more than two per square mile in Fairfield.

The activity stands out because Connecticut otherwise remains mired in a historic slowdown in single-family home construction. Builders pulled permits for fewer than 2,100 detached houses statewide last year, the lowest annual total on record.

Still, other pockets of the state have maintained a steady pace of construction.

Greenwich, Danbury and Southington each recorded more than 50 new-home listings or sales during the 18-month period. Danbury's total was driven largely by Toll Brothers' massive Rivington development,while Southington benefited from Lovley Development's Braemar Estates, whose sales helped propel the town to the biggest increase in home sales in Connecticut last year, ahead of Stamford.

Another 13 municipalities recorded between 20 and 31 new-home listings or sales during the period tracked by Zillow: Newtown, Brooklyn, Shelton, East Lyme, Cheshire, Bristol, Watertown, Middletown, Tolland, East Hampton, New Canaan, Colchester and Manchester.

Stamford was among a handful of cities and towns to just miss that cut, while Norwalk ranked farther down the list despite consistently placing among the state's leaders in overall home sales the past several years.

Hebert said builders gravitate toward communities with enduring appeal, whether because of strong schools, vibrant town centers, cultural amenities, commuter rail service or waterfront access. Developers build where buyers feel confident investing, he said.

Measured by population rather than total homes, Windham County dominated. Hampton ranked first with one newly built home listed or sold for every 290 residents over the past 18 months, followed by Sterling and Brooklyn.

Back in Fairfield County, many of the lots selected for new construction offer inherent appeal, including locations along or near Long Island Sound, according to Conlan Segerson of Fairfield-based Segerson Builders.

"Some of the houses we build are basically nestled into the rocky coast there," Segerson said. "It's the whole package, but I think it's the community. The towns themselves are great, and I think it's a great experience for young families."

Staff writers Rob Ryser and Paul Schott contributed to this report, which includes prior reporting by Robert Marchant.

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