Vermont’s postcard-perfect charm — rolling green mountains, maple-lined streets and quaint downtowns — has long attracted buyers seeking a slower pace of life. But new housing data suggests that dream is slipping out of reach: every city in the state is now considered unaffordable for the average homebuyer.

A Statewide Affordability Crisis

Analysts say median home prices across Vermont have surged far beyond what a typical household earning the state’s median income can reasonably afford. In many communities, monthly mortgage payments now consume well above the recommended 30% of gross income threshold.

Even in smaller cities and traditionally lower-cost markets, home prices have climbed sharply since the pandemic, fueled by:

• An influx of out-of-state buyers

• Limited housing inventory

• Rising construction costs

• Persistently tight supply in rural areas

The result? A statewide affordability crunch with no clear “budget-friendly” alternative.

Burlington and Beyond

The state’s largest city, Burlington, has seen especially steep price growth as remote workers and second-home buyers compete for limited listings. But the problem isn’t confined to urban hubs.

In the capital, Montpelier, and across smaller towns, price-to-income ratios now exceed sustainable levels for middle-class buyers. Local realtors report bidding wars even for modest single-family homes.

Who Gets Priced Out?

First-time buyers are bearing the brunt of the crisis. Younger Vermonters — particularly those without generational wealth or large down payments — are increasingly unable to compete.

Meanwhile, long-time residents face rising property taxes tied to higher assessments, adding further strain.

Housing advocates warn that if affordability continues to erode, Vermont risks:

• Workforce shortages

• Slower economic growth

• Aging population trends

• Increased displacement

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A Rural Paradox

Vermont’s appeal lies in its rural beauty and tight-knit communities. But limited land development, zoning restrictions and environmental protections — while preserving the state’s character — also constrain housing expansion.

Economists say the supply shortage is structural. Without meaningful increases in housing stock, prices are unlikely to stabilize.

Is Relief Coming?

Lawmakers have proposed incentives for new construction and zoning reforms aimed at boosting supply. Yet building in Vermont’s terrain and regulatory environment is neither quick nor inexpensive.

For now, the message to average-income buyers is sobering: the entire state has effectively crossed into unaffordable territory.

In a place famous for its peaceful landscapes and small-town charm, the real estate market has become anything but quiet.