Rental Market

The 532 new units projected to open in 2023 is 53% higher than the average Chittenden County growth over the past 3 years, and 82% higher than the long-term average since 2000. Of the 532 expected units, 57% (304) are already completed as of June. For comparison, the total of new units constructed in 2022 was 291, a promising indicator.

AVERAGE APARTMENT RENTS IN CHITTENDEN COUNTY	RANGE
Studio, 1 bath	$1,200 - $1,985
1 Bedroom	$1,400 - $2,100
2 Bedroom, 1 Bath	$1,700 - $2,300
2 Bedroom, 2 Bath	$1,950 - $3,300

Of the 532 units expected to open, 206 (39%) are projected to open in South Burlington. Essex/Essex Junction is expecting 96 (18%) units, followed by Colchester 78 (15%), and Burlington 72 (13%). The rest are opening in Shelburne, Williston, and Milton. Most of the new units are identified as market rate units with a growth in “Affordable, Family” units over the prior year.

The apartment vacancy rate in Chittenden County increased slightly for the first time since the June 2020 report to 1%. For comparison, the national average is just under 5%.

Due to limited inventory, the average monthly rent has continued to increase, with the average cost of a 2-bedroom being reported at just over $1,600 a month as of the latest rent survey* with a more typical cost hovering around $2,000 per month.
As with the residential housing market, the need to act quickly is now more important than ever. Landlords do not hold apartments, the first person to provide the necessary deposit and signed lease are the ones who secure the apartment. Unfortunately, renters often must push their wants to the side and focus on their needs to find a rental option within the timeframe they require.
Source: Allen, Brooks, & Minor Report, June 2023

In 2022, 291 new units were brought to market. In 2023, 501 apartment units are scheduled for completion. As of December 2022, nearly 80% of these were already under construction as they are slated to open in the first half of 2023. While this new product is positive, the increase in available units is not expected to substantially impact the vacancy rate. Demand continues to put pressure on the available supply.

Construction projects planned for Burlington, South Burlington, and Colchester account for almost 64% of total unit growth. Of these units, 80% of them will be rented at the Market Rate. No senior housing was constructed in 2022, but 23 units of market rate senior rentals are expected to be completed in 2023.

Average monthly rent increased 5.5% from 2021 to 2022; up from 2.7% during the prior timeframe.Source: Allen, Brooks, & Minor Report, December 2022

Source: Allen, Brooks, & Minor Report, December 2022

Even with a slight increase in the vacancy rate, the rental market in Chittenden County continues to be tight. The pool of renters has very limited inventory to choose from, which means some units are highly sought after and extremely competitive. Many leasing/property managers have a waiting list for available units.

The 532 new units projected to open in 2023 is 53% higher than the average Chittenden County growth  over the past 3 years, and 82% higher than the long-term average since 2000. Of the 532 expected units, 57% (304) are already completed as of June. For comparison, the total of new units constructed in 2022 was 291, a promising indicator.

Of the 532 units expected to open, 206 (39%) are projected to open in South Burlington. Essex/Essex  Junction is expecting 96 (18%) units, followed by Colchester 78 (15%), and Burlington 72 (13%). The rest are opening in Shelburne, Williston, and Milton. Most of the new units are identified as market rate units with a growth in “Affordable, Family” units over the prior year.

The apartment vacancy rate in Chittenden County increased slightly for the first time since the June 2020
report to 1%. For comparison, the national average is just under 5%.

Due to limited inventory, the average monthly rent has continued to increase, with the average cost of a
2-bedroom being reported at just over $1,600 a month as of the latest rent survey* with a more typical cost hovering around $2,000 per month.

As with the residential housing market, the need to act quickly is now more important than ever.  Landlords do not hold apartments, the first person to provide the necessary deposit and signed lease are the ones who secure the apartment. Unfortunately, renters often must push their wants to the side and focus on their needs to find a rental option within the timeframe they require.

Source: Allen, Brooks, & Minor Report, December 2021

The rental market in Chittenden County is evolving due to the continued construction of new units with higher-end finishes and amenities.

 

Rental Options are Increasing
The Allen, Brooks, and Minor June 2019 Report identified an anticipated 661 apartments to open in 2019. Assuming projects are completed on time, this year will be the second highest on record (behind 2016). The highest concentration of growth is expected to be in Burlington (217 units) and South Burlington (193 units). Together, these two communities account for 62% of the anticipated new apartment growth in 2019. Williston holds the third largest contribution at 96 anticipated units.

Low Vacancy Rates Make for a Tight Rental Market
With the completion of new construction projects, vacancy rates in Chittenden County have gradually decreased to 1.8% over the last 18 months – returning to rates seen in 2015 and 2016. With that said, the vacancy rate in Chittenden County continues to fall behind national averages near 4.8%. It is expected the rate will increase by the end of the year once the remaining anticipated 661 apartments become available to renters.

Adjustments in Current Aging Rental Options
New construction projects have provided tenants with welcomed amenities such as: central air conditioning, covered parking, secure storage, in-unit washers/dryers, fitness rooms, tennis courts, outdoor pools, and clubhouses. These newer units have led competing landlords to consider strategies for attracting and retaining tenants. Some landlords opt to invest in renovations to modernize aging properties in response to changing expectations from tenants.

Chittenden County Apartment Rental Rates
The below chart reflects rental rates in new multi-story buildings which opened in the last three years.

 

 

 

 

 

If you need help navigating the Chittenden County rental market, start the process at www.HickokandBoardman.com/vermont-rentals. Resources such as recommended websites to start your search, as well as up-to-date rental market information can all be invaluable to you during your search.

The rental market in Chittenden County is rapidly changing due to a surge of newly constructed apartment buildings.

The Allen, Brooks, & Minor December 2017 Report identified 2,908 apartment units pending approval and permitting in Chittenden County. Although the timeline for this new inventory is uncertain, and some may not come to fruition, they do represent possible rental unit growth in Chittenden County. The majority of units are in projects such as Cambian Rise, City Place Burlington (the Burlington Town Center redevelopment project), and Bayberry Commons on Grove Street.

The following are some trends that are having an impact on the rental market:

Decline in Vacancy Rate
362 units were completed in 2017 – above the 18-year average of 258 units. In 2018, 448 units are either currently under construction or are projected to be available for occupancy. The increase is finally prompting a trend of increased vacancy rates, reported at 2.62% in December 2017.

Wider range of choices for renters

A surge in new construction and an increase in vacancy rates means renters have more options. While the newly constructed buildings typically have higher rents, some renters prefer them because of the amenities, such as parking, gyms, recreation trails, storage, and pet grooming facilities.

Healthy Growth for Landlords

Landlords report tenant demand still appears to be relatively strong. In 2017, rents increased 2.1% versus previous annual increases of 3% – a sign of healthy, yet sustainable growth in the rental market.

On the higher end, a three-bedroom apartment that cost $1,033 in 2014; now costs $1,855, according to Allen, Brooks & Minor data.
Executive-level apartments in expensive complexes — where exercise and dog washing facilities are included in the monthly rent — are collecting as much as $2,000 a month.

Our Realtors speculate that high rents could actually make the housing market attractive to potential first-time homebuyers who might want to stop paying high rent.

Also, newly constructed apartment buildings in Chittenden County are creating new housing stock that will better meet the needs of relocating professionals.

College students still dominate the rental market in the Burlington area, and student properties are still moving quickly because they are a continuous source of revenue. With new housing options coming online for students, such as a 315-bed dormitory for Champlain College, demand for off-campus rentals may taper.

The rental market in Chittenden County is rapidly changing due to a surge of newly constructed apartment buildings.

With almost 700 newly constructed apartment units coming online in 2016, the rental market is showing more favorable signs for renters. A slight increase in the vacancy rate is giving renters more options in their apartment searches, while also prompting some landlords to offer more flexible terms or incentives to attract new tenants – most often in the “off season”.

New rental buildings include Bartlett Brook, a 63-unit building in South Burlington, and the 67-unit Bayberry Commons in Burlington. South Village, a community of single family homes and townhomes in South Burlington, also offers a limited number of townhomes for lease. Demand has been high for these spacious two level units with private entrances and underground parking.

Our Rental Specialist is forecasting that rent increases will moderate in 2017. Rents may decline on some older apartments that lack the amenities offered by newer competition. It’s likely that the pressure on rents will continue throughout the year, given that another 323 apartment units are projected to come on the market in 2017, according to real estate consulting company Allen & Brooks.

Even though the vacancy rate has eased, our Rental Specialist continues to recommend an apartment search no more than 30 to 45 days before a move.

The following are some trends that are impacting the rental market:

Decline in Vacancy Rate
The vacancy rate declined from 4.4% in December 2016 to 2.5% in June 2017, according to Allen & Brooks. While this is a slightly higher rate than past years, it remains a competitive market for renters.

Wider range of choices

The construction surge means renters have more options than in previous years. The newly constructed buildings typically have higher rents, yet some renters prefer them because of the amenities, such as parking, gyms, recreation trails, storage, pet grooming, and swimming pools.

Because our rental expert has extensive contacts with landlords, Realtors, and associations, Coldwell Banker Hickok & Boardman Realty is well positioned to help clients find the most recent properties on the market.

 

The rental market in Chittenden County is rapidly changing due to a surge of newly constructed apartment buildings.

With almost 700 newly constructed apartment units coming online in 2016, the rental market is showing more favorable signs for renters. A higher vacancy rate is giving renters more options in their apartment searches, while also prompting some landlords to offer more flexible terms or incentives to attract new tenants.

New rental buildings include Bartlett Brook, a 63-unit building in South Burlington, and the 67-unit Bayberry Commons in Burlington. Both buildings are offering one month of free rent for applicants who sign a lease by March 1, a sign of the type of incentives that are now available.

Our Rental Specialist is forecasting that rent increases will moderate in 2017. Rents may decline on some older apartments that lack the amenities offered by newer buildings. It’s likely the pressure on rents will continue throughout the year, given that another 323 apartment units are expected to come on the market in 2017, according to real estate consulting company Allen & Brooks.

Even though the vacancy rate has eased, our Rental Specialist continues to recommend an apartment search no more than 30 to 45 days before a move.

The following are some trends that are impacting the rental market:

A favorable vacancy rate for renters
The vacancy rate jumped to 4.4% in December 2016 from 3% a year earlier, Allen & Brooks found. In the previous decade, the rate rarely rose above 2%.

A wider range of choices
The construction surge means renters have more options than in previous years. The newly constructed buildings typically have higher rents, yet some renters prefer them because of their amenities, such as parking, gyms, recreation trails, storage, pet grooming, and swimming pools.

Minimal rent increases
The new rental inventory and higher vacancy rate will kick off a period of minimal to no rent increases, predicts Allen & Brooks. This comes after average rent increases of almost 3% per year since 2011. A welcomed relief as the rental prices in Chittenden County are high compared to wage levels.

Because our rental expert has extensive contacts with landlords, Realtors, and associations, Coldwell Banker Hickok & Boardman is well-positioned to help clients find the most recent properties on the market.

The rental market in Chittenden County is rapidly changing due to a surge of newly constructed apartment buildings. 

*According to Allen & Brooks Reports

During the past decade, the vacancy rate has hovered between 1-2%, far below the national average. The low vacancy rate and rising expenses such as property taxes, had led to a competitive market for renters, and allowed landlords to increase rents steadily each year.

With almost 700 newly constructed apartment units coming online in 2016, the rental market is showing more favorable signs for renters. A higher vacancy rate is giving renters more options in their apartment searches, while also prompting some landlords to offer more flexible terms or incentives to attract new tenants.

New rental buildings include Bartlett Brook, a 63-unit building in South Burlington, and the 67-unit Bayberry Commons in Burlington. Both buildings are offering one month of free rent for applicants who sign a lease by March 1, a sign of the type of incentives that are now available.

Our Rental Specialist is forecasting that rent increases will moderate in 2017. Rents may decline on some older apartments that lack the amenities offered by newer buildings. It’s likely the pressure on rents will continue throughout the year, given that another 323 apartment units are expected to come on the market in 2017, according to real estate consulting company Allen & Brooks.

Even though the vacancy rate has eased, our Rental Specialist continues to recommend an apartment search no more than 30 to 45 days before a move.

The following are some trends that are impacting the rental market:

A favorable vacancy rate for renters

The vacancy rate jumped to 4.4% in December 2016 from 3% a year earlier, Allen & Brooks found. In the previous decade, the rate rarely rose above 2%.

Wider range of choices

The construction surge means renters have more options than in previous years. The newly constructed buildings typically have higher rents, yet some renters prefer them because of their amenities, such as parking, gyms and swimming pools.

Minimal rent increases

The new rental inventory and higher vacancy rate will kick off a period of minimal to no rent increases, predicts Allen & Brooks. This comes after average rent increases of almost 3% per year since 2011. A welcomed relief as the rental prices in Chittenden County are high as compared to wage levels.

Because our rental expert has extensive contacts with landlords, Realtors and associations, Coldwell Banker Hickok & Boardman Realty is well positioned to help clients find the most recent properties on the market.

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Chittenden County’s Rental Market Insights

• The county’s vacancy rate is 4.4%, easing from historically low rates of 1-2%
• Rent increases may moderate in 2017 because of the higher vacancy rate

The rental market remains competitive despite an increase in newly constructed apartment buildings. Because available apartments are leased quickly due to strong demand, our Rental Specialist recommends starting an apartment hunt no more than 30 to 45 days before a move. 

The Vacancy Rate Is Easing

The vacancy rate stood at 2.1% in June, significantly higher than the rates seen in 2010-2014, when it averaged about 1.4%, according to real estate consulting firm Allen & Brooks. With more than 3,000 new apartments being constructed across Chittenden County, there will be more options for renters, including some new affordable housing and age-restricted rentals. Almost 600 new apartments will open in 2016 alone, Allen & Brooks forecasts.

More Choices for Renters

The burst of new construction is providing more choices to renters, such as whether to opt for a newly constructed apartment or an older home in neighborhoods such as Burlington’s Old North End, according to our Rental Specialist. Newer buildings may be slightly more expensive, but also can include modern amenities and conveniences, such as fitness rooms and pet friendly policies, that older properties do not.

Stabilizing Rents

Monthly rents are stabilizing, thanks to the slightly higher vacancy rates and newly constructed apartment buildings. The rate of increases should moderate in the near future, after several years of rates increasing at more than 2% annually, Allen & Brooks notes.

Plan for a 30-45 Day Search

Renters should plan to begin their search for a new apartment about 30 to 45 days before they move, according to our Agents. Finding a rental can be competitive, even with the higher vacancy rate.

Revitalized Neighborhoods

Revitalization is bringing new residents to older neighborhoods and towns, such as Winooski and the Old North End of Burlington. Winooski has earned a reputation as “The Brooklyn of Vermont” because of its excellent new restaurants and more affordable rents than neighboring Burlington. Both areas are seeing new construction, such as the Silversmith Commons and Maiden Lane Apartments in the Old North End and Riverrun in Winooski.
Because our rental expert has extensive contacts with landlords, Realtors and associations, Coldwell Banker Hickok & Boardman is well-positioned to help clients find the most recent properties on the market.

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Chittenden County’s Rental Market Insights

• The county’s vacancy rate is 2.1%, significantly below the national average of 4.4%.
• Rents have increased by more than 2% annually since 2011.