New England Landmark Realty covers the Vermont real estate market 

from the inside — market data, buyer strategy, seller timing, land 

use regulation, and the policy decisions shaping what homes cost and 

who can afford them.

 

Tony Walton has been working Vermont real estate since 1978. 

The analysis here reflects that depth.

 

Browse by topic below, or use the search to find what you need.

Jan. 19, 2025

Green Mountain Gains: Why Vermont’s Housing Market Is Staying Resilient

 

By New England Landmark Realty LTD

For the first time since the pandemic began, housing affordability did not worsen in 2024. Nationally, a slight increase in wages and more inventory helped ease some of the pressure in markets that have seen years of relentless home price growth. Redfin reports that the typical U.S. household spent 41.8% of its income on housing last year, a modest improvement from 42.2% in 2023. While this is still far above the ideal affordability threshold of 30%, it signals a turning point in a market defined by unyielding price hikes.

But how does Vermont compare to this national trend? Vermont’s housing market remains distinct, with affordability challenges that reflect its unique economic and geographic characteristics. Unlike some regions that saw minor relief, Vermont's housing market is a different story. Yet, there's room for optimism for home buyers here in the Green Mountain State.

Vermont’s Unique Challenges in Affordability

National affordability gains are primarily tied to rising inventory in urban hubs and regions like Texas, where markets in Austin and Dallas have cooled from pandemic-driven peaks. Vermont, however, tells a different story:

  1. Tight Inventory: Unlike cities experiencing increased housing supply, Vermont’s inventory remains limited. Popular areas like Burlington, Stowe, and Montpelier see homes snatched up quickly, with demand often outstripping supply.
  2. Income vs. Prices: Vermont’s median income of approximately $75,000 lags behind the national figure of $83,782. With median home prices in Vermont hovering around $392,000, affordability remains a significant challenge.
  3. Tourist and Second-Home Demand: Vermont’s natural beauty and appeal to second-home buyers inflate demand in popular areas, driving up prices even further. This dynamic isn’t as prevalent in other markets, as highlighted in Redfin’s report.

The Ray of Hope for Vermont Homebuyers

Despite these challenges, Vermont buyers have reason to remain hopeful:

  1. Local Wage Growth: Vermont saw a 5.4% increase in median household income in 2023, one of the highest growth rates in the country. This means that while home prices remain high, more Vermonters are seeing their incomes rise, helping to offset some affordability concerns.
  2. Legislative Action: The state has doubled affordable housing efforts, with increased funding for workforce housing and community development projects. These initiatives could bring relief to first-time homebuyers in the coming years.
  3. Expanding Rural Appeal: As remote work persists, less competitive markets in Vermont’s smaller towns and rural areas may provide opportunities for buyers looking beyond traditional hotspots like Burlington or Woodstock.
  4. Stability Over Spikes: While national experts predict home price increases in 2025, Vermont’s market tends to avoid the dramatic price swings in larger urban areas. Slow and steady appreciation could provide some predictability for buyers.

What Vermont Can Learn From National Trends

National markets like Austin, San Antonio, and Dallas saw affordability improve as inventory expanded and demand leveled. Vermont can look to these examples for guidance, prioritizing the development of housing inventory while maintaining its commitment to preserving the state’s natural beauty and character.

For buyers, the national trend reminds them that relief can come with patience and persistence. Vermont’s market may not have mirrored national improvements in 2024, but incremental progress—like rising wages and legislative support—sets the stage for brighter days ahead.

Looking to Navigate Vermont’s Housing Market?

Tony Walton and his team at NELandmark.com can help you turn challenges into opportunities. With local expertise and a deep commitment to finding the right home for every buyer, Tony is ready to guide you through Vermont’s unique real estate market. Contact Tony today at 802-253-4711 and start your journey to owning a slice of the Green Mountain State.

Jan. 17, 2025

Rising Inventory: A National Story with Vermont Implications

 

 

By New England Landmark Realty LTD

Nationally, 2024 marked a pivotal moment in the housing market, as inventory levels climbed closer to pre-pandemic norms. While these gains didn't trigger the widespread price declines some predicted, they signaled a gradual return to healthier market conditions. For Vermont, however, this shift is moving at its characteristic pace—historically slower than national trends but often following the same trajectory. Vermont's unique market conditions, shaped by its size, geography, and demand dynamics, add nuance to these changes.

Vermont: A Slow, Steady Follower of National Trends

Vermont's real estate market has a long history of mirroring national patterns, albeit with a lag. In the aftermath of the 2008 housing crash, Vermont saw fewer foreclosures and slower price declines than national markets, but it recovered more gradually. Similarly, when the pandemic housing boom sent prices skyrocketing across the country, while substantial, Vermont's growth in median home prices was tempered by limited inventory and fewer high-risk buyers.

As national inventory rises toward 2019 levels, Vermont is again catching up, but at its own pace. Nationally, inventory peaked at 739,434 homes this year, compared to a low of 240,497 in 2022. Vermont's inventory has yet to rebound significantly as the state grapples with systemic challenges like restrictive zoning and a small housing stock. However, historical trends suggest that Vermont will follow the broader national trajectory—eventually benefiting from the increased balance between supply and demand.

How National Trends Compare Locally

New Listings

While new listings nationally reached a weekly peak of over 75,000 in 2024—still below pre-pandemic norms—Vermont remains far behind. During the 2008 housing crisis, Vermont's new construction projects slowed dramatically and took longer to recover than in other states. Today, many Vermont communities are still working to offset those deficits, with legislative initiatives like Act 250 reform aiming to spur development. While small towns like Barre and Springfield are starting to see more activity, Burlington and Montpelier remain highly competitive.

Price Cuts and Stabilization

Nationally, price cuts hovered around 36.4% in 2024, reflecting growing inventory and stabilizing prices. In Vermont, price cuts are less frequent due to persistently high demand, especially in desirable areas like Stowe and Woodstock. However, the trend of slower but steady price appreciation, seen after the 2008 crash, suggests that Vermont could see stabilization sooner than expected if inventory continues to grow.

Mortgage Rates and Demand

National mortgage rates, ranging between 5.75% and 7.25% in 2024, affect Vermont buyers just as they do elsewhere. Historically, when national rates dropped in the 2010s, Vermont experienced an uptick in demand, particularly from out-of-state buyers. With rates stabilizing, Vermont may see more balanced conditions, though demand from remote workers and second-home buyers remains a key factor.

The Ray of Hope: Vermont's Slow, Steady Resilience

Vermont's market is defined by its resilience. While national trends take time to reach the state, they often bring long-term benefits. Buyers in 2025 can expect:

  1. Gradual Inventory Growth: Legislative efforts, like increased funding for affordable housing, will slowly expand Vermont's housing stock.
  2. Opportunities in Undervalued Areas: Towns beyond Burlington, such as Randolph and Newport, attract attention as buyers seek affordable options.
  3. Stabilizing Prices: As inventory grows, Vermont's historically moderate price trends may further stabilize, offering more predictability for buyers.
  4. A Stronger Local Economy: Vermont's rising wages and economic diversification—seen in sectors like renewable energy and tech—support buyer purchasing power.

Conclusion

Rising inventory is the national housing story of 2024, and Vermont will likely follow this trend as it has in the past—at its own deliberate pace. While challenges remain, Vermont's history of steady growth and legislative efforts provide a path forward. Buyers who understand the state's unique dynamics and embrace its slower shifts can find opportunities in 2025, particularly in emerging markets and less competitive areas.

Navigating Vermont's Real Estate Market?

Tony Walton and the NELandmark.com team bring unparalleled expertise to Vermont's housing market. Whether you are searching for a home in bustling Burlington or exploring opportunities in smaller towns, Tony's local knowledge will guide you every step of the way. Call 802-253-4711 today!

Jan. 16, 2025

Who Really Saves Money with a FSBO?

Jan. 15, 2025

Unlocking Vermont's Real Estate Secrets: A First-Time Homebuyer's Blueprint for 2025

Jan. 10, 2025

Navigating Vermont’s Rural Real Estate: Tips for Buying Homes with Acreage

Jan. 7, 2025

Historic Homes in Vermont: Charm, Character, and Market Value

Jan. 3, 2025

Investing in Vermont's Vacation Rental Market: Opportunities and Insights

Jan. 1, 2025

Vermont's Eco-Friendly Homes: Sustainable Living in the Green Mountain State

Jan. 1, 2025

Waterfront Properties in Vermont: A Masterpiece of Lakeside Living

Dec. 30, 2024

Exploring Vermont's Luxury Homes: A Guide to High-End Real Estate in the Green Mountain State