Connecticut's Cost of Living Squeeze: Higher Bills, Less Room to Breathe

For Connecticut families, affordability reaches beyond the price of buying a home. Property taxes, insurance, groceries, and energy bills all compete for the same paycheck.

A survey conducted by the University of New Hampshire Survey Center offers a recent snapshot: 87% of Connecticut respondents said their cost of living had increased over the previous 12 months, and half said they were financially worse off than a year earlier.

The survey, published in September 2026 by the CBIA Foundation, included 917 Connecticut residents interviewed August 20–24. Its reported margin of sampling error was plus or minus 3.2 percentage points. It measures residents' experiences and opinions, rather than a statewide price index.

"87% of Connecticut respondents said their cost of living had increased over the previous 12 months."

Where Municipal Property-Tax Levies Increased Most

An analysis of Connecticut Office of Policy and Management data compared the adjusted annual property-tax levy for fiscal years ending in 2020 and 2023 across the state's 169 towns, excluding the separate City of Groton record. The five largest percentage increases were:

These figures measure total adjusted taxes levied, not the increase on an individual home. Tax-base growth, reassessments, and changes among property types can affect the totals. They are nominal figures, without an inflation adjustment. The statewide series ends in 2023.

Insurance Adds Another Layer

Connecticut Insurance Department reports document additional pressure. The statewide overall auto-insurance rate change was 11.2% in 2023, 8.9% in 2024, and 4.1% in 2025. For homeowners insurance, the department reported average allowed rate increases of 9.6%, 13.5%, and 8.7% in those respective years.

Those figures describe insurance rate activity. They do not mean every policyholder received the same increase, and the two insurance measures should not be treated as identical. A household's premium also depends on its insurer, coverage, deductible, and circumstances.

Higher Costs Do Not Mean Every Tax Increased

Insurance premiums are household expenses, not taxes. Connecticut also reduced its motor-vehicle property-tax rate ceiling from 45 mills to 32.46 mills beginning with the October 2021 assessment year. That ceiling alone does not determine a vehicle owner's bill, which also depends on the taxable assessment and local rate.

The evidence supports a story about pressure from multiple bills, rather than a claim that every Connecticut tax rose. For families deciding whether they can afford to stay, those bills must be weighed together with income, housing needs, and employment opportunities.

Six-Year Historical Check: FY2017–FY2023

The latest comparable six-year interval in the OPM individual-town series is FY2017–FY2023, rather than FY2020–FY2026. The largest adjusted levy increases over that historical interval were:

These are independently calculated from the same official OPM dataset, excluding GROTON (CITY). These figures cover the six-year historical interval FY2017–FY2023 and should not be labeled as increases of the last six years.

Six Complete Years of Insurance Rate Reporting

The Connecticut Insurance Department's annual reviews provide a six-year picture of rate activity for both auto and homeowners insurance:

Source: CID annual reviews, linked below. Do not add these percentages or present a compounded figure as the increase in an average household's actual premium.