Key Takeaways

Key Takeaways Housing shortage reality: Vermont needs about 24,000 housing units but is only building 1,200 annually, creating ongoing supply pressure and price increases across all regions. Migration driving demand: Steady in-migration from other New England states, led by remote workers and retirees, is increasing housing demand faster than local job growth would suggest. Regional market differences: Burlington area commands highest prices near $450,000 median, while Northeast Kingdom remains most affordable, though options under $200,000 are disappearing. Investment opportunities exist: Properties needing renovation offer potential returns due to strong rental demand, but investors must navigate higher construction costs and Vermont's regulatory environment.

Vermont's Housing Market Reality Check: What Growth Looks Like in the Green Mountain State

Look, I've been watching Vermont's housing market for years, and let me tell you — it's not your typical growth story. While other states are dealing with boom-and-bust cycles, Vermont's got something different going on. It's steady, it's challenging, and if you're thinking about buying, selling, or investing here, you need to understand what you're really looking at.

I had a client call me last month from Burlington who inherited a property from his grandmother. He was shocked to learn that her modest 1960s ranch was worth nearly three times what she paid for it just ten years ago. That's Vermont for you — quiet growth with some serious surprises.

The Population Story: Small Numbers, Big Impact

Here's the deal with Vermont's population growth — we're not talking about Texas or Florida numbers here. Vermont's population has grown by about 2.8% since 2020, reaching approximately 647,000 residents as of 2025. That might not sound like much, but in a state this small, every new resident matters.

What's driving people to Vermont? I'm seeing three main groups moving here:

• Remote workers who discovered during the pandemic they could live anywhere with good internet
• Retirees looking for a quieter pace and lower crime rates
• Young families attracted to Vermont's schools and outdoor lifestyle

The remote work trend has been huge. Vermont's rural internet infrastructure got major upgrades through federal programs, making it possible for tech workers to live in places like Stowe or Manchester while keeping their big-city salaries. That's putting upward pressure on housing prices in ways we've never seen before.

New Construction: The Numbers Don't Add Up

Here's where Vermont's housing situation gets tricky. The state issued permits for about 1,200 new housing units in 2025 — sounds decent until you realize that's barely keeping up with new household formation, let alone addressing the existing shortage.

Vermont's housing shortage is estimated at around 24,000 units statewide. At the current construction pace, we're looking at decades to catch up, assuming demand doesn't keep growing. And here's the kicker — most of that new construction is happening in expensive markets like Chittenden County, not where working families can afford to live.

I've seen this firsthand through HOMESELL USA. We're getting calls from people who can't find anything to buy, even with cash offers. The inventory shortage is real, and it's affecting everyone from first-time buyers to investors looking for their next project.

Construction costs in Vermont are running about 15% higher than the national average, thanks to tough winters, challenging terrain, and limited contractor availability. A basic single-family home that might cost $300,000 to build in neighboring New Hampshire is running $345,000 or more in Vermont.

Job Market: Steady Growth, Wage Challenges

Vermont's unemployment rate sits at a healthy 2.8% as of early 2026, well below the national average. The state added about 3,200 jobs in 2025, with growth concentrated in:

• Healthcare and social services (aging population driving demand)
• Professional services (benefiting from remote work trends)
• Tourism and hospitality (Vermont's outdoor recreation boom)
• Manufacturing (specialized products and food processing)

But here's the reality check — median household income in Vermont is about $68,000, while the median home price has hit $395,000. That math doesn't work for most families without significant down payment help or dual incomes.

I'm seeing more clients at HOMESELL USA who are local working families getting priced out of their own communities. They're selling properties they can't afford to maintain or upgrade, often to out-of-state buyers with deeper pockets.

Migration Patterns: Who's Coming and Going

Vermont's migration story is fascinating. The state is gaining residents overall, but it's losing young people aged 18-34 while gaining people over 50. About 60% of new Vermont residents are coming from other New England states, with Massachusetts, Connecticut, and New York leading the way.

What's driving the in-migration? Quality of life ranks high, but so do practical factors:

• No sales tax (though income and property taxes are high)
• Strong healthcare system
• Low crime rates
• Access to outdoor recreation
• Environmental consciousness

The out-migration is mostly young adults heading to cities with more job opportunities and lower housing costs relative to wages. It's a pattern I've seen in rural areas across New England.

Regional Differences: Not All Vermont Markets Are the Same

When people talk about Vermont real estate, they often lump the whole state together. That's a mistake. Here's what I'm seeing in different regions:

Chittenden County (Burlington area): This is Vermont's economic engine, with the tightest housing market and highest prices. Median home prices are pushing $450,000, and inventory stays low.

Southern Vermont: Areas like Brattleboro and Bennington are seeing steady growth as people look for more affordable alternatives to Massachusetts. Prices are rising but still somewhat reasonable.

Ski Country: Stowe, Killington, and other resort areas have their own dynamics. Second home buyers drive prices up, making it tough for locals.

Northeast Kingdom: Still Vermont's most affordable region, but even here, decent properties are getting harder to find under $200,000.

The Investment Angle: Opportunities and Challenges

For investors, Vermont presents a mixed bag. On one hand, steady population growth and limited inventory suggest continued price appreciation. On the other hand, high purchase prices, tough winters, and regulatory challenges make it a more complex market than some alternatives.

Through HOMESELL USA, I'm seeing investor interest in properties that need work — the kind of places that scare off typical buyers but offer potential for those willing to put in the effort. Vermont's strong rental market, driven by housing shortages, can support renovation projects that pencil out.

But investors need to understand Vermont's regulatory environment. The state takes housing seriously, with strong tenant protections and environmental regulations that can affect development projects.

Looking Ahead: What to Expect

Vermont's housing market growth story isn't going to change overnight. The fundamentals — limited land, tough development environment, steady but modest job growth — point to continued supply constraints and price pressure.

The state is trying to address the housing shortage through zoning reforms and incentive programs, but meaningful change takes time. In the meantime, anyone looking to buy, sell, or invest in Vermont needs to work with professionals who understand the local dynamics.

Whether you're a homeowner thinking about selling or an investor looking for opportunities, Vermont's market rewards those who understand its unique characteristics. It's not about quick flips or easy money — it's about recognizing value in a state where housing is increasingly precious.

If you're dealing with a Vermont property situation — whether it's an inherited house you can't maintain, a property with issues that's hard to sell traditionally, or you just need to move quickly — give Uncle Charles a call. I've worked with folks across all 50 states, and Vermont's got its own personality. No pressure, no judgment, just straight answers about your options. Sometimes the best move is selling fast to someone who understands what they're buying, and that's where HOMESELL USA comes in.

Frequently Asked Questions

Frequently Asked Questions

Q: Is Vermont's housing market overpriced compared to job opportunities?

A: With median home prices at $395,000 and median household income around $68,000, there's definitely a affordability gap. However, many new residents are bringing higher incomes from remote work or retirement savings, which is driving prices up beyond what local wages alone would support.

Q: Where is the best value for homebuyers in Vermont right now?

A: The Northeast Kingdom still offers the most affordable options, with decent properties starting around $200,000. Southern Vermont towns like Brattleboro also provide better value than the Burlington area or ski regions, though prices are rising there too.

Q: How long is Vermont's housing shortage expected to last?

A: With a shortage of about 24,000 units and only 1,200 new permits issued annually, we're looking at decades to catch up at current construction rates. The shortage will likely persist unless there's a major change in development policies or construction capacity.

Q: Are there good investment opportunities in Vermont real estate?

A: Yes, but they require local knowledge. Properties needing renovation can offer good returns due to strong rental demand and limited inventory. However, investors need to understand Vermont's regulations and factor in higher construction costs and challenging winters.

Q: What's driving people to move to Vermont despite high housing costs?

A: Quality of life factors like low crime, good schools, outdoor recreation, and environmental quality are big draws. Remote work flexibility has also allowed people to bring higher salaries to Vermont while enjoying the lifestyle benefits.