Vermont Home Selling

The Vermont housing market is shaped by low inventory, rising construction costs, and strong buyer demand, all of which support elevated prices. With stiff buyer competition and just 3 months of supply, affordability remains a problem in some of the state's local property markets.

As of October 2025, the median home sale price in Vermont was $434,200, slightly lower than the national median of $439,917. Vermont also offers investors more affordable real estate than all three of its border states (Massachusetts, New Hampshire, and New York).

Though seasonal trends and local markets dictate how quickly homes sell, the median days on market (DOM) for the typical home in Vermont was around 60 days, considerably slower than busier Northeast markets like Massachusetts and New York.

Despite a slower pace of home sales, demand continues to exceed supply, giving sellers a slight edge in the Green Mountain State. As the number of homes for sale continues to increase, the market is gradually shifting toward more balanced territory. While steady construction activity roughly in line with the national rate has supported some additional supply in the state, labor shortages continue to limit new construction growth.

Property taxes in Vermont are a key cost driver of homeownership, detracting from affordability. With an average effective rate of 1.71%, Vermont is the fifth most expensive state, sitting squarely between New Hampshire (1.77%) and New York (1.60%).

Vermont remains one of the most stable housing markets in the nation, with a low unemployment rate (2.5%) and strong homeowner equity keeping foreclosures to a minimum. According to ATTOM Data, Vermont saw just one foreclosure for every 17,741 housing units. Meanwhile, neighbors like Massachusetts and New York saw significantly more foreclosure activity, with rates of 1 in every 5,101 and 1 in every 4,765, respectively.

With a strong tourism industry and picturesque landscapes, Vermont remains one of the top real estate investment destinations in the United States. Beyond its unique appeal, the state's housing market remains competitive with promising potential for continued growth. For investors seeking long-term appreciation or cash flows, Vermont may be a solid option, particularly in markets with outdoor amenities and rapid job growth.

Each local housing market in Vermont presents real estate investors with unique benefits, from cultural attractions and a vibrant economy to a more flexible regulatory environment or strong year-round rental demand. Some of the top places for residential property development in the state include the following:

• Burlington: With a population of around 45,000, Burlington is Vermont's largest city. Its diverse economy, which spans sectors like tech, education, and healthcare, drives strong rental demand.

• Rutland: Industries like manufacturing, healthcare, and tourism contribute significantly to Rutland's local job market, offering long-term investors the prospect of stable, reliable rental returns. With a median sale price of $244,000, this historic city also boasts one of the most affordable real estate markets in the state.

• Montpelier: Vermont's capital city has a diverse economy that's largely driven by government, education, and healthcare. The city is also known for its vibrant art scene, which includes attractions like the T.W. Wood Art Gallery and the Montpelier City Hall Arts Center. These benefits make Montpelier a promising market for rental investors looking to capitalize on cash flow opportunities.

• Stowe: This town is a sought-after destination for outdoor activities, including hiking, skiing, and mountain biking, creating a favorable market for investors looking to earn short-term or vacation rental income.

• South Burlington: South Burlington's extensive infrastructure investments continue to drive property value growth. In addition, it hosts several major annual events, like the Vermont Balloon and Music Festival and the South Burlington Summer Concert series, drawing thousands of visitors and making the city a hot spot for short-term rental investments.

• Colchester: Colchester's proximity to Burlington offers prospective investors a steady tenant base, including students and professionals, and average rents of around $2,400 per month.

• Jericho: Jericho's limited inventory and consistent housing demand keeps its vacancy rate low. The robust rental market also creates opportunities for real estate investors looking for steady tenant demand.

• Norwich: Located just across the river from Dartmouth College, Norwich capitalizes on university-adjacent opportunities and rental demand from students and faculty.

• Essex Junction: With a robust rental market and proximity to major employment centers in nearby Burlington, Essex Junction continues to generate strong rental demand.

In Vermont, the typical home takes around 60 days to sell. While pricing, location, and the time of year can affect how long a property spends on the market, certain factors or features can help accelerate home sales and generate more interest. In Vermont, homes with the following features tend to sell the fastest:

To maximize property value and avoid potential deal-breakers or legal issues, Vermont home sellers need to stay aware of local zoning laws, permitting processes, and regulatory requirements. Before undertaking a new project or making any additions to an existing structure, investors should establish a basic understanding of these regulations and processes in the jurisdiction of the subject property.

As required by state law, home sellers must disclose detailed information about the condition of a property to potential buyers, typically known as a Seller's Property Information Report. In addition, Vermont homebuyers often request zoning compliance certifications during the due diligence process, which can verify that a property complies with local zoning regulations and is free from open violations. Where a letter states otherwise, a potential buyer is likely to back out of a real estate transaction or renegotiate.

Throughout the state, different areas tend to be more or less development friendly. The breakdown below highlights which areas are typically more strict in their regulation of housing, and which ones offer more flexibility.

• Areas with strict zoning laws: Municipalities with strict zoning laws in Vermont are generally known for tight controls on land use, density, and lot size, which are aimed at preventing overdevelopment and preserving rural character. For instance, in Manchester, residential and commercial zones are carefully regulated, while in Dorset, strict density and land conservation zoning can limit development.

  Woodstock and Shelburne also have some restrictive development codes. Investors in these areas should expect limits on commercial-residential mixes and increased administrative requirements. In addition, detailed site plans and environmental reviews may be required in some neighborhoods with strict zoning laws, especially when located near environmentally protected areas or historic districts.

• Areas with less bureaucratic zoning laws: Development in these areas is usually easier due to more flexible zoning and fewer regulatory hurdles. Permitting is generally faster, and the rules are more flexible for housing conversions and other major projects. In Vermont, less bureaucratic areas include Barre, where lenient zoning encourages revitalization, and Newport, where flexible housing projects are supported to boost affordability.

  Rutland is also known for easier permitting processes that allow for redevelopment of older housing stock, which attracts real estate investors. As an added benefit, investors in these areas often emphasize redevelopment potential and affordability when marketing.

• Areas requiring a special permit: These municipalities in Vermont often require special permits for conditional uses, variances, and certain projects that don't fit by-right zoning. They include Essex Junction, where conditional use permits via zoning board review are required for many building projects; South Burlington, which requires special hearings for several types of commercial or multifamily projects; and Middlebury, where public hearings are usually held for large-scale housing projects.

  Properties in these areas typically appeal to buyers who appreciate historic charm. However, developers must demonstrate strong alignment with the municipality's character to win approval.

• Areas requiring a Certificate of Occupancy (CO) before legal occupation: While a CO may be needed before legal occupation in most parts of Vermont, it's typically enforced more rigidly in urban areas or regional hubs. For example, a CO is required to finalize legal occupancy in South Burlington, while all major remodels and new builds in Burlington require a CO. Similarly, CO requirements are enforced in areas like Winooski and Essex Junction. While a new CO is typically not required for routine sales of existing homes, sellers should verify local rules in these areas before listing a property for sale.

• Areas requiring the approval of a historic commission: The architectural heritage in these areas is preserved by local historic preservation commissions or design review boards. Exterior renovations, material changes, or additions often require sign-off from the commission or board.

In Vermont, such areas include Stowe, where historic appearance is tightly regulated; Woodstock, which requires approval for almost all visible exterior changes; and Bennington, where the Historic Preservation Commission must approve renovations to properties in historic zones. Homes in these areas generally retain higher values, indicating higher potential ROI for investors. However, developers should budget extra costs for traditional materials and expect longer approval timelines.

The legality of real estate development and flipping in Vermont hinges on compliance with certain regulatory provisions. Real estate investment is generally characterized by its potential to maximize property value and generate outsized returns. However, understanding the legal framework of a local real estate market, and complying with its regulations, are key factors to maximizing property value and avoiding potential issues in the state.

The regulatory climate in each area of Vermont can vary widely, requiring investors and sellers to adapt to local laws. These regulatory climates may be more or less friendly to investors, as outlined below.

Development-Friendly Areas

In these areas, zoning laws are generally fewer in number and more flexible. This encourages development and investment, particularly in less-regulated rural zones. In Vermont, such areas include Cambridge, Roxbury, Waterville, and Eden, where zoning is limited. Fewer local restrictions in these municipalities make it easier for investors to initiate projects like tiny homes, new builds, or accessory dwelling units (ADUs) with minimal red tape.

Moderately Regulated Areas

Although these municipalities have some zoning laws and permitting requirements, they're typically reasonable and clear, with manageable oversight. In other words, there's a balance between protecting community character and encouraging housing development. For instance, Burlington recently enacted a new Neighborhood Code to enable more housing diversity, including small multiunit buildings and duplexes, all under relaxed residential zoning.

Similarly, Charlotte, Waterbury, and Shelburne were selected for Bylaw Modernization Grants, enabling them to rework zoning and allow more housing types. Developers in these areas are benefiting from streamlined approvals and fewer barriers to mixed-use projects or infill, while future-density potential is a valuable selling point for existing owners.

Highly Restrictive or Bureaucratic Areas

These areas are known for their detailed bylaws, strict local zoning laws, and heavy oversight, making housing development more complex. Investors should expect public hearings, multistep permitting processes, potential design constraints, and longer timelines, especially for projects that challenge the status quo.

In Vermont, municipalities like Middlebury have some of the most detailed zoning and design controls. Similarly, Chester paused proposed zoning changes in the thick of intense rural development debates in late 2024, signaling strong real estate regulatory control.

Regulatory Climate Factors

The real estate regulatory climate in Vermont can differ by city, town, and metro. It determines how difficult or easy it is to develop new builds, renovate existing properties, or flip houses in each neighborhood.

The table below can help investors understand the impact of major real estate regulatory factors on housing development in Vermont, noting the municipalities where each factor is commonly found:

*NIMBYism - Not in My Backyard

House flipping is the process of buying residential properties, renovating them, and reselling them to make a healthy profit margin. With its unique market conditions and stable rise in home values, Vermont offers investors many opportunities to flip properties using a variety of different strategies.

Before investing in Vermont flips, it's important to understand the local market dynamics. In doing so, you can determine the best flipping and resale strategies for each local housing market, several of which are outlined below:

Before setting home prices, sellers should analyze current market conditions. Hiring a local real estate agent or certified appraiser to review active listings and recent sales can help sellers set a competitive price that typically reflects current demand.

The following pricing strategies are some of the most effective options for sellers, with each including the areas in Vermont where they may work especially well.

The table below can help Vermont home sellers determine the best pricing method to adopt based on current local market conditions:

Several factors contribute to the current state of Vermont's local property markets. The most significant factors influencing real estate supply, demand, and price include:

Economic Factors

Anchored by sectors like agriculture, tech, and tourism, Vermont's modest but steady economy continues to drive demand in the state's local property markets. Areas with stronger job markets, like Burlington, Montpelier, and South Burlington, generally attract more buyers, contributing to elevated prices. On the other hand, areas with slower economies in the state may witness lower housing demand and sluggish prices.

Demographic and Social Factors

Lifestyle shifts, population trends, migration trends, age distribution, and remote work are all shaping housing demand in Vermont. For instance, many remote workers and young families are driving housing demand in municipalities with good schools and broadband access, such as Bennington, Middlebury, and Essex Junction. On the other hand, retirees are generally supporting demand in smaller, peaceful towns with healthcare access, like Woodstock and Stowe.

Regulatory and Legal Framework

Vermont has strict land use controls under Act 250, which is largely responsible for supply shortages in many high-demand areas. Permitting, zoning, and land use laws typically determine where and how development happens in the state. For example, tight zoning keeps housing supply constrained in Burlington, while zoning rules in Norwich limit density.

Taxation and Fiscal Policy

Vermont is known for relatively high property taxes, which generally affect housing affordability across most municipalities. While high property taxes often discourage homebuyers, strong schools, which are funded by such taxes, can appeal to families. For instance, in Essex Junction, balanced tax rates and good schools continue to attract family buyers, while tax rates and proximity to job markets sustain housing demand in St. Albans.

Housing Policy and Government Programs

Affordable housing is being boosted in the state through programs like Vermont Housing and Conservation Board initiatives. Such programs can help make rental homes more available, support workforce housing supply, and encourage green building (via energy efficiency incentives). For instance, while Barre receives state-backed housing grants to promote affordable housing, Winooski and Brattleboro continue to benefit from major affordable housing projects.

Infrastructure and Development Trends

Infrastructure developments like transportation, renewable energy, and broadband access continue to drive housing demand and shape where people want to live in Vermont. Areas with better and more modern infrastructure in the state generally attract commuters, families, and remote workers. For example, broadband projects and interstate access are major factors that continue to draw families to Randolph and Williston, while transportation access keeps housing demand steady in Middlebury. Similarly, the tourism infrastructure in Stowe is boosting second-home demand in the town.

Vermont continues to witness steady demand for housing, as well as home price increases. Despite active homebuilding and an increase in the number of existing homes for sale, Vermont struggles to keep up with supply, sustaining a seller's market in 2025.

Housing market trends in the state are generally influenced by economic factors, like its low unemployment rate, along with demographic factors, social trends, tax policies, government programs, local real estate regulations, and infrastructural developments.

Before buying or selling, investors and developers in Vermont must understand the regulatory and legal framework in each local housing market. Since Act 250 and other laws make Vermont municipalities among the more difficult to navigate, working with an experienced local real estate agent or attorney is highly recommended.