Flipper · Lebanon, CT · Member since 2016 · 29 posts · 8 votes
I am just wondering if anyone has thought of the ramifications to the rental market should one, two or possibly 3 of these (Aetna, Cigna, The Hartford) major employers leave the state of CT? I am looking at rental property in the surrounding Hartford area, but am concerned that if these companies leave it could have a profound effect on my success with my rental property. Both Aetna and Cigna are in the process of merging with companies in much more tax friendly states and now I am hearing rumors of the Hartford. What would happen to the vacancy rates, pool of very qualified renters, housing prices, tax rates? It would not only have an effect on the immediate jobs, but the jobs of those businesses that rely on these companies and employees. If Aetna left it could be 6,000 jobs, all three 12,000 jobs. Could it open the door to more companies leaving? Please leave any of your thoughts or comments. Thank you
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
10y
If you are concerned about rumors then you will always be concerned about the other shoe dropping throughout the entirety of your investing career and if that is the case there are safer places to put your money.
I have been investing in Hartford county for 10 years in C+-B+ areas and have never had a renter that worked for any of those companies you mentioned.
Could more companies leave? Maybe, who knows. If someone on an internet forum told you they thought more companies would leave , would that impact you wanting to invest in the Hartford area?
If that answer is yes, again, there are safer places to put your money and no investment is worth constantly worrying about. That's the #1 thing I've learned over the years.
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
10y
If you are concerned about rumors then you will always be concerned about the other shoe dropping throughout the entirety of your investing career and if that is the case there are safer places to put your money.
I have been investing in Hartford county for 10 years in C+-B+ areas and have never had a renter that worked for any of those companies you mentioned.
Could more companies leave? Maybe, who knows. If someone on an internet forum told you they thought more companies would leave , would that impact you wanting to invest in the Hartford area?
If that answer is yes, again, there are safer places to put your money and no investment is worth constantly worrying about. That's the #1 thing I've learned over the years.
There is no doubt if any of the discussed mergers go through it will have ramifications, but to what extent will depend on many variables, including how many employees relocate, can the state attract new major employment, and also what asset class you are invested in.
As an example, while GE is eventually moving to Boston from Fairfield, they are now transferring most of their employees to Norwalk for the next several years, so I don't think the impact will be immediate and if [big IF] CT can get other companies to fill some of their space it may not be a huge detrimental impact. But of course it could be too.
The asset class you're invested in will also matter: If you are invested in Class C properties there is a good chance that you will be less affected (but still impacted) than Class A and B rentals in the Greater Hartford area, yet if employment takes a big hit, it will likely hit all classes of rentals.
As @Michael Noto mentioned, there is going to be a risk everywhere that you invest. That is not to diminish your point, I do think it's a very valid concern - and something that concerns me in the overall Connecticut market due to it's unfriendly business practices - but just know that market risks will be everywhere.
As a side note, Cigna is in the process of being acquired by Anthem unless it is blocked; and Aetna is trying to acquire Humana (not be acquired). However, Aetna still may leave CT (here is a link to an article a few months back about that: http://www.courant.com/business/hc-aetna-annual-meeting-20160520-story.html)
Rental Property Investor · Jacksonville, FL · Member since 2016 · 25 posts · 25 votes
10y
Hartford is having a "apartment boom" I see numerous new and renovated spaces coming on the market. As someone who works in Hartford I'm not sure what the draw is at the price they are trying to rent for. I've looked at the vacant Front Street Luxury condos for almost 2 years now with no build out of the units. I think people may say they want to live in the city but why pay more in rent, taxes and car insurance and not have anything other than some restaurants to dine at? I think Hartford and CT in general is dying. High taxes and high cost of running a business in this state has seen more companies leave than will ever come back.