Southeastern Connecticut Real Estate Market
The real estate market in the six-town region of Waterford, New London, Groton, Stonington, Ledyard, and North Stonington exhibits a unique and compelling resilience that sets it apart from broader statewide and national trends. While national forecasts predict a modest decline in home values and a sluggish sales environment for the remainder of 2025 , this local market is fundamentally driven by a stable and powerful economic bedrock. The consistent demand from major employers, particularly in the defense and maritime sectors, creates a strong, counter-cyclical force that continues to favor sellers, even in the face of persistent affordability challenges and elevated mortgage rates.
The Defense and Maritime Anchor
The most significant factor shaping the long-term health of the southeastern Connecticut real estate market is the presence of General Dynamics Electric Boat (EB) and the Naval Submarine Base in Groton. The sustained, multi-decade demand for new submarines from the U.S. Navy has created a massive, ongoing hiring initiative that is unique in the national economic landscape. Electric Boat is in the midst of a “hiring frenzy” with the goal of expanding its workforce from over 15,000 to 18,000 employees by 2030. To achieve this goal and account for attrition, the company will need to hire between 14,000 and 20,000 workers over the next decade. This is not a temporary boom but a strategic, long-term wave of employment growth driven by multi-billion-dollar government contracts that provide an exceptional degree of economic certainty for the region for years to come.
Connecticut Doubles Down on Naval Defense with $7.7 Million Investment
The ocean winds that sweep across New London carry more than salt air these days—they carry the promise of economic stability and national security, thanks to Connecticut’s latest commitment to our naval infrastructure.
Governor Ned Lamont recently signed off on $7.7 million in state funding for critical upgrades at the U.S. Submarine Base in New London, a move that speaks volumes about Connecticut’s strategic thinking when it comes to protecting both our military assets and our economic future.
More Than Just Infrastructure
This isn’t simply about replacing some aging boat ramps and floating piers, though that’s exactly what the money will fund. It’s about Connecticut’s recognition that the submarine base represents something much larger: 6,000 direct jobs and countless contractor positions that ripple through the local economy.
The investment becomes even more significant when you consider the synergy with Electric Boat, the submarine manufacturing giant that calls Connecticut home. Together, these operations form the backbone of a defense corridor that has defined southeastern Connecticut for generations.
The Bigger Picture
Since 2009, Connecticut has invested nearly $23 million in submarine base infrastructure projects. That’s not charity—it’s smart economics. Every dollar invested helps secure thousands of jobs and maintains Connecticut’s position as a leader in naval defense technology.
Looking Forward
Connecticut’s continued investment in naval infrastructure sends a clear message to Washington: we’re committed partners, not just convenient hosts. In an era when military spending faces constant scrutiny, states that demonstrate genuine partnership in maintaining critical infrastructure are more likely to retain and expand military operations.
For thesoutheastern Connecticut reall estate market, this investment represents job security and economic stability. For the nation, it represents a state that understands the connection between local investment and national security.
The $7.7 million investment may seem modest in the context of state budgets, but its impact will be felt far beyond the Thames River waterfront. It’s an investment in Connecticut’s future—one that recognizes our naval heritage while building toward tomorrow’s challenges.