Vermont, aka the Green Mountain State, is a state in the New England region of the US, renowned for being a popular retreat destination with many New Yorkers. Having a lot to offer year-round, the Green Mountain State boasts phenomenal occupancy rates no matter the season. Although relatively small in area (ranking 45th among the US states), Vermont welcomes around 13 million visitors yearly.
Many tourists and a low crime rate have made Vermont a popular state with investors. However, Vermont has over 230 towns and nine cities, making it tricky to choose a place that can secure high income. In this guide, we’re exploring six real estate markets recognized by Vermont real estate agents as the best in Vermont to help you make a more considered decision.
Burlington is a scenic little town on the eastern shore of Lake Champlain. Although relatively small (with a population of 42,645 as of 2020), it’s the most populous city in Vermont. Burlington boasts a thriving art scene, four colleges, and a vibrant community with many activities for its residents. Interesting fact: Burlington became the first city in the US to run entirely on renewable energy in 2015. Home to the University of Vermont (founded in 1791) and Champlain College (1878), the city is teeming with students needing rentals. According to realtors in Burlington VT, rent here averages $1584, while the median sale price is $325,000. As a landlord, you can expect around seven leads per property and no more than 22 days on the rental market.
Located just a 30-minute drive from Burlington, the small town of Jericho (5,104 residents as of 2020) ranks as the top place to live with the Green Mountain State locals. The town takes pride in many family-friendly amenities, such as one of the state’s oldest Boy Scout troops and highly-rated schools. Foreclosure activity in Jericho is low, meaning that most homeowners succeed in meeting their mortgage obligations. The current median home listing price in Jericho is $569,000, with forecasts predicting that it will grow in the future.
Stowe is a town in Lamoille County with a population of 5,223 as of 2020, nicknamed “The Ski Capital of the East.” Home to Stowe Mountain Resort with 40 miles of skiable terrain, Stowe is one of the best places in the US for investing in winter homes. While the town is popular with Alpine skiing enthusiasts in winter, it drives thousands of tourists in the summer through fall with its spectacular mountain views and breathtaking hiking trails, which translates into attractive rental incomes. The median home value in Stowe is $429,000, with a 4% annual change.
Even with the highest number of foreclosures in the state, Vermont’s third-largest city of Rutland (15,807 as of the 2020 census) has a comparatively stable housing market. Median home prices haven’t risen in recent years like across other areas, but the median days on the market have significantly decreased. The demand is staying in line with the increased inventory, even with foreclosed homes available, and might surpass it since more and more people are getting priced out of the neighboring states and moving to Vermont. Satisfying the current demand and seeing high ROIs is quite possible, especially if you can buy houses at the pre-foreclosure stage. The median home price in Rutland is $244,500.
The population of Charlotte, a town in Chittenden County, was 3,912 at the 2020 census. Charlotte is just a 25-minute drive from Burlington, making it a perfect location for people who want to combine excellent job opportunities offered by a major city with the virtues of peaceful provincial life. Charlotte is home to many artists and boasts some of the highest-rated schools in Vermont. The median home value in Charlotte is $605,000. This town is also a good choice for a rental unit investment: the median rent here is $1,692, which is higher than the national average.
With a population of over 17.5 thousand residents, Colchester is the second-most populous town in Vermont. It is directly to Burlington’s north on the eastern shore of Lake Champlain, to the west of the Green Mountains. There are three apparent reasons why Colchester is an attractive real estate investment destination:
- Job market. Two of Vermont’s biggest cities near each other offer excellent job opportunities, welcoming more people to settle here. Colchester has an unemployment rate of6%, while the US average equals 6.0%.
- Saint Michael’s College. Colchester is home to Saint Michael’s College. As of spring 2018, there were nearly 1,600 undergraduate students, 80% out-of-state, meaning that rentals are always in demand.
- Popular hiking destination. Plenty of tourists come to the area for its excellent hiking trails and the outstanding beauty of Lake Champlain.
The median listing home price in Colchester is $449,000, while the median monthly rent is $1,950.
It’s always a wise solution to partner with a professional real estate agent when considering investment properties. Real estate agents can assist you in developing a viable strategy to create your portfolio. In addition, real estate pros can give you a hand in contacting the best contractors that you will need when going through the process of purchasing real estate in Vermont.