Vermont grapples with population decline, housing scarcity
Economic headwinds
Vermont's economic outlook ranks 48th nationally, characterized by slow growth and high business costs. Employers in the state consistently identify labor shortages, housing challenges, and regulatory burdens as significant obstacles.
Housing market right now
The median home price in Vermont reached $395,900 in January 2026, marking a 4.2% increase over the past year. Inventory levels are increasing in areas such as Burlington, Montpelier, and Stowe, shifting the market toward a more balanced state. However, the state still faces a substantial housing deficit, with an estimated need for 40,000 new homes by 2030.
Migration patterns
Vermont experienced a net population loss of 0.3% between July 2024 and July 2025, the highest in the U.S. This decline is primarily due to more deaths than births and a decrease in international migration in 2025. Chittenden County, historically a hub for immigrants, saw its net gain of international migrants halve between 2024 and 2025.
Infrastructure and policy
The Vermont Agency of Transportation plans to pave fewer state-owned roads in fiscal year 2026, a nearly 45% reduction from the previous year, due to faltering transportation revenues. Governor Scott's executive order in September 2025 aims to streamline permitting and reduce regulatory barriers for housing construction. Additionally, the Benn High Redevelopment Project in Bennington will create 39 new homes and a childcare facility.
Key facts
- Vermont's median home price was $395,900 in January 2026.
- The state's population declined by 0.3% between July 2024 and July 2025.
- Weidmann Electrical Technology in St. Johnsbury is undertaking a $44 million expansion, projected to add 67 jobs by March 2026.
- Mortgage rates in Vermont declined to approximately 6.0%–6.13% in late 2025.
- The Vermont Agency of Transportation's proposed paving budget for 2026 totals about $103 million, a decrease from roughly $130 million in 2025.