REGION – According to the Federal Housing Finance Agency (FHFA), Vermont has seen the highest increase in home appreciation of all 50 states over the past year – 12.8%, nearly double the national average.
Per statistics compiled by the Vermont Association of Realtors (VAR), the median sales price for a single-family home in Vermont in August 2024 was $412,450, there was a 27% increase in closings, and active inventory increased by 44.6%, adding approximately 846 new listings. The median sale price per square foot went up by almost 5%, to $234.
This is good news for Vermonters ready to sell their property, but it is advisable to have a solid plan in place for what comes after the sale goes through. Once a seller becomes a buyer, they may need to consider compromising on some of their prerequisites, and potentially putting down a larger down payment to offset high interest rates.
The VAR real estate market dashboard tool shows an infographic with statistics, a market review, and a map that can be navigated by county. You can use the tool at www.vermontrealtors.com/vermont-market-data.
Assistant professor of political science at Middlebury College Gary Winslett has spent the past several years talking to housing advocates, elected officials, and everyday Vermonters about housing. “I’m naturally interested in the intersection of regulation and markets,” Winslett admitted, so he started investigating.
Since moving to Vermont in 2019, Winslett has written extensively about the housing market in the Green Mountain State, both the pros and the cons. He points to the historical effort to “keep Vermont weird,” and how that expression attracts outdoor enthusiasts, naturalists, artists, “hippies,” and other creative thinkers. Vermont has a population density of 68 people per square mile, one of lowest state population densities east of the Mississippi River.
However, the strict regulations set up to protect the environment and preserve rural communities deters new housing development, and Winslett has said Vermonters need to learn how to “embrace economic growth, enthusiasm for new housing, and a future-focused orientation.”
State and local government has started to address the housing shortage, and there are a variety of ideas and proposed solutions being considered. “This is a super rural state, and even if we got slightly less rural…we’d still be quite rural,” Winslett stated. “Even with more housing, Vermont will still have a very rural vibe. That’s not changing. We could be a lively, energetic, thriving, fun place that’s affordable for everybody.”