Arkansas vs Connecticut: Cost of Living, Home Prices & Sub Base New London (2026)

Quick Answer: Connecticut is one of the most expensive states in the country — median home prices in the Groton/New London area (home of Sub Base New London) run $330,000–$420,000, and Connecticut’s overall cost of living is approximately 20–25% above the national average. Connecticut has a 5% income tax and partially exempts military retirement pay only for lower-income retirees. Central Arkansas offers median home prices of $199K, 100% military retirement pay tax exemption, and a cost of living 11–13% below the national average — making it one of the most compelling post-submarine-base retirement destinations for Navy families. Contact Ashley Watters at (501) 951-9200.

Arkansas vs Connecticut: Overview

Connecticut and Arkansas represent two very different versions of American life. Connecticut is the wealthiest state in the country by median household income, home to Wall Street commuters, defense industry executives, and the world’s largest submarine base. Arkansas is one of the most affordable states in the country, with low home prices, a declining income tax rate, and a genuine quality of life built around outdoor recreation, Southern hospitality, and a cost structure that lets military retirement pay go further than almost anywhere else in the nation.

For Navy submariners and their families who have served at Naval Submarine Base New London — or completed Nuclear Power School — the Arkansas vs Connecticut comparison is fundamentally about what life looks like after the uniform comes off. Connecticut’s economic gravity is real, but its cost of living makes it extremely difficult to sustain on fixed military retirement income.

Naval Submarine Base New London: The Hub of Submarine Force Atlantic

Naval Submarine Base New London in Groton, Connecticut is the largest submarine base in the world and the home of the U.S. Navy’s Submarine Force Atlantic. The base hosts numerous fast-attack submarines (Virginia-class, Los Angeles-class) and is home to the Naval Submarine School — the training pipeline for all submarine-qualified enlisted and officer personnel in the Atlantic Fleet. The Navy’s Nuclear Power School operates at Naval Station Charleston (formerly co-located at SUBASE NLON), drawing thousands of students annually to the nuclear propulsion qualification pipeline.

The Coast Guard Academy is located in New London, Connecticut — across the Thames River from SUBASE NLON — adding another military and law enforcement educational dimension to the southeastern Connecticut military community.

For submariners, Groton is career-defining territory. But the Groton/New London housing market reflects Connecticut’s overall expensiveness: median home prices in New London County run $330,000–$420,000, with coastal areas considerably higher. The broader Connecticut market — particularly Fairfield County (Greenwich, Westport, Stamford) — reflects NYC commuter pricing at $600,000–$2,000,000+ and essentially prices out any military family on fixed retirement income.

Connecticut Home Prices vs Central Arkansas

New London County (home of SUBASE NLON) runs $330,000–$420,000 at median for single-family homes — nearly double Central Arkansas’s $190,000–$215,000. Hartford County (state capital area) runs $280,000–$380,000. Even the more affordable Eastern Connecticut communities closest to the submarine base run $280,000–$360,000 for decent family homes.

For a Navy veteran using their VA loan entitlement at retirement, the math is stark: a $215,000 Central Arkansas home with zero down produces a monthly payment under $1,400 at current rates. A $370,000 Groton-area home produces monthly payments over $2,200 — a gap of $800–$900/month that directly impacts retirement budget sustainability.

Connecticut Income Tax and Military Retirement

Connecticut has a graduated income tax with rates ranging from 2% to 6.99% (top rate on income over $500,000 for joint filers, with 5% applying to most middle-income brackets). For a military retiree household, the effective Connecticut income tax rate typically lands in the 5% range on most income.

Connecticut provides a limited military retirement pay exemption: retirement pay from military service is exempt from Connecticut income tax for taxpayers with federal AGI under $75,000 (single) or $100,000 (married). Above those thresholds, military retirement pay is fully taxable. For retired O-4/O-5 and above, or for households where both spouses work, the AGI thresholds are easily exceeded — meaning significant portions of military retirement pay face Connecticut’s 5%+ income tax. Arkansas fully exempts all military retirement pay with no income thresholds and no caps.

Cost of Living: Connecticut’s Full Premium

Connecticut’s overall cost of living runs approximately 20–25% above the national average — one of the highest in the continental United States. Property taxes in Connecticut are among the highest in the country (effective rate approximately 1.79% vs the national average of 1.07% and Arkansas’s 0.61%). Groceries, utilities, childcare, and services all carry Connecticut’s high-wage economy premium. Heating costs in Connecticut winters are significant — natural gas and heating oil bills run $300–$600/month in cold weather months. Arkansas’s cost of living at 87–89 (national average = 100) is roughly 30–35 percentage points below Connecticut’s — among the largest cost-of-living gaps of any two states in the country.

Connecticut Winters vs Central Arkansas

Connecticut has genuine New England winters — January average highs of 35°F in New London, with snow, ice, and occasional nor’easters bringing significant accumulations. The climate is manageable and the state has the infrastructure to handle it, but for military families from warmer states (or returning from overseas assignments in warm climates), Connecticut winter is an adjustment. Central Arkansas averages January highs of 50°F in Little Rock — mild by national standards, with occasional ice storms but no persistent winter cold.

VA Healthcare: Connecticut vs Arkansas

The VA Connecticut Healthcare System operates facilities in West Haven and Newington — full-service facilities serving Connecticut’s veteran population. SUBASE NLON veterans have access to the on-base Branch Medical Clinic for active-duty care, with VA care available in West Haven (approximately 40 miles from Groton). Little Rock’s VA Medical Center is a full-service facility within 20 minutes of most Central Arkansas communities — better proximity for most veterans than Connecticut’s distributed system.

Why Navy Families Choose Arkansas After Connecticut

The pattern is consistent among retiring submariners: Connecticut’s cost of living is sustainable on active-duty pay with BAH — it is not sustainable for most households on fixed military retirement income alone. Veterans who own homes in the Groton/New London area (purchased with VA loans during their submarine tours) often have significant equity that translates into a Central Arkansas home with no mortgage or a very small one. The financial reset from Connecticut pricing to Central Arkansas pricing is among the most dramatic available to any retiring veteran.

Work With a Central Arkansas REALTOR®

Ashley Watters | eXp Realty | Central Arkansas specialist | VA loans & relocations
📞 (501) 951-9200 | ✉️ [email protected] | arkansashousesearch.com

More State Comparisons: Arkansas vs Virginia | Arkansas vs New York | Arkansas vs Maryland | Arkansas vs New Jersey | Arkansas vs Massachusetts | Full Relocation Guide
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Your Agent: Ashley Watters — Central Arkansas REALTOR®, military spouse, VA loan specialist, and PCS relocation expert. Call (501) 951-9200.
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