Is Danbury's Economy Slowing Down?

Danbury's economy has been the envy of Connecticut over the last several years. We have actually grown in population when many communities lost population, we have attracted economic development (think Boehringer Ingleheim, Mannkind, Biodel, PennWest in the pharmaceutical industry, and think Best Buy, Lowe's, renovations to the Danbury Fair Mall in the retail industry.) while other communities have lost jobs and economic growth. Our personal income has jumped over the last two years and the percentage of people living below the poverty level has dropped to historic lows.

So are we seeing a slow down? Like any community we are struggling with the cooling housing market. Prices have stabilized or even dropped in many areas of the City. New home construction is off, while the secondary housing market has slowed. What is the cause? The sub prime mortgage crisis has been a real problem for us. Unfortunately, it has hit Danbury in two ways. First, people received mortgages for homes when they were not prepared for the challenge of home ownership. Second, people with risky credit or no credit took on loans that had large balloon payments, or adjustable rates that shot up after 4 or 5 years to make the payments financially impossible.

These issues present challenges for the economy of Danbury and for the entire nation. The good news is that here in Danbury we are well positioned to see our way through these times. There are a number of "tire kickers" looking to move their business to Danbury. Hopefully, we will be able to make some announcements soon.

Stay tuned...

All the Best,
Mayor Mark