April 28, 2022
Throughout 2020 and 2021, the Connecticut Board of Labor reported high numbers of unemployment claims and other worrying statistics about the state’s overall economic situation. However, a recent economic look at Norwalk, CT shows promise of growth and stability.
This Norwalk economic outlook was presented to the Norwalk Common Council earlier this year. Here’s what Norwalk residents and business owners need to know about housing, new businesses, commercial real estate, and urban development in 2022.
Residential Housing
In January of 2022, the median listed home price in Norwalk, Connecticut was $550,000, a 10% increase from the previous year.
As of late February and early March of this year, the average single-family home sold for $750,000 and spent about 86 days on the market.
These price changes signal a robust residential housing market. According to the report, home vacancy rates are at an all-time low in Norwalk, CT. This could drive increased housing development in the form of single-family homes, apartments, and multi-family residences for people of every economic background.
New Businesses
To give an accurate assessment of new business growth in Norwalk, government officials focused their attention on two statistics.
First, they looked at the number of new business formations since July 2021. In that period, there have been 185 new businesses established. The committee projects that by June 2022, that number will reach 370.
Next, the city reviewed how many commercial tenant fit-up permits they’ve granted since the beginning of the fiscal year. There have already been 71, so they anticipate granting a total of 140 by the end of the fiscal year.
2020 only saw 101 commercial tenant fit-up permits granted to businesses while 2021 saw 131. With these promising statistics, it appears as if business development in Norwalk is seeing a rebound from the hardships of the Covid-19 pandemic.
Commercial Real Estate
To get a bigger picture of the Bridgeport-Stamford-Norwalk commercial real estate market, the commercial leasing activity in the area was compared to national averages. Overall, the state of commercial real estate appears to be weaker than national averages, especially in the retail property sector.
However, the following property sectors in Norwalk are stronger than the national averages:
- Apartments
- Offices
- Industrial
- Hotel/lodging
Insecurities about economic recovery in Norwalk were attributed to the rise of the Omicron variant earlier this year.
Class A office availability has increased to 38.3%. This increase in available office space is possibly due to changing attitudes about office workers working from home and sublease supply. The city continues to watch these trends closely.
Urban Development
Despite some weakness in the commercial real estate market, the City of Norwalk anticipates five new urban development projects that may see groundbreaking or applications in 2022:
- Pinnacle, 467 West Avenue—393 residential units and 26,000 square feet of commercial space in South Norwalk
- 10 Monroe Street—150 residential units and 16,000 square feet of commercial space
- A mixed-use commercial/apartment building at Monroe and Chestnut Streets near the South Norwalk train station
- A Wells Fargo site in East Norwalk
- Applications for commercial sites on Route 1
What This Economic Outlook Means for Norwalk’s Future
In general, Norwalk city officials see this economic outlook report as promising. In both residential and commercial sectors, developers are laying building blocks for increased growth in the future. The City of Norwalk will continue to work with developers and seek input from residents and businesses.
Combined with reviews and updates to Norwalk’s industrial zones, industrial waterfront land uses, zoning regulations and affordable housing plans, the City of Norwalk has high hopes for 2022’s economic situation.
Stay tuned with the City of Norwalk. Give your ideas and feedback for the future plans for business development in Norwalk by subscribing to updates, and make your voice heard.
