Rental Market

The rental market in Northwest Vermont remains tight, although there’s some good news on the horizon for renters: with an influx of newly constructed apartments, rental prices are showing signs of stabilizing, a trend that is expected to continue.

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 Agents. Newer buildings may be slightly more expensive, but also can include some amenities, such as covered parking, 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 percent annually, Allen & Brooks notes.

Plan for a Two-Month Search Before a Move

Renters should plan to begin their search for a new apartment about 45 days to 60 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
237 Pearl Street Apartments in the Old North End and Riverrun in Winooski.

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Chittenden County’s Rental Market Insights

• The county’s vacancy rate is 2.1%, significantly below the national average of 4.5%.
• Rents have increased by more than 2% annually since 2011.

 

While apartment hunting in Northwest Vermont remains competitive, renters are in a better position than a year ago, thanks to a higher vacancy rate and stabilizing rents. The following are some trends that are impacting the rental market:

The Vacancy Rate Is Easing

The vacancy rate stood at 3% in December, almost double the 15-year average of 1.6%, according to real estate consulting firm Allen & Brooks. With 3,500 new apartments being constructed across Chittenden County, that’s providing more options for renters, such as Finney Crossing in Williston and Riverrun in Winooski. Almost 600 new apartments will open in 2016 alone, Allen & Brooks forecasts.

Renters Have More Choices

With developers opening new apartment buildings, renters have more options, such as whether to look for a recently constructed building or housing in the older homes found in the Old North End of Burlington, for instance. Our Agents find that the rents are often comparable, although the newer buildings often include amenities – such as covered parking – that aren’t available with older apartments.

More Wiggle Room with Rents

Because of the higher vacancy rate and new apartments coming to the market, renters are finding some financial breathing room after 15 years of annual average increases of 3.1%. Monthly rents are stabilizing, and our Agents believe that rents may see some softness in coming months.

Prepare to Search Two Months Before a Move

Our Agents advise renters to start searching for a new apartment 45 days to 60 days before they need to move. Landlords typically market their apartments within that time frame, and hunting for a new home can still be competitive.

A Vibrant Local Economy

Large local employers such as the UVM Medical Center continue to hire, while industries such as the technology sector are growing and adding workers. Relocating families and professionals often want to rent before committing to buying, which is adding to demand for rental properties.

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Chittenden County’s Rental Market Insights

• The county’s vacancy rate is 3%, significantly below the national average of 4.4%.
• Rents have increased 3.1% annually since 2001.

New Interest in Old Neighborhoods

Professionals are increasingly drawn to the Old North End of Burlington because it’s within walking distance to downtown and offers more affordable rents than other neighborhoods, Allen & Brooks notes. Likewise, Winooski has earned a reputation as “The Brooklyn of Vermont” because of its excellent new restaurants and cheaper rents, which is drawing more professionals to the city. Developers are responding by constructing higher-end buildings in these areas, such as the Packard Lofts 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 Realty is well positioned to help clients find the most recent properties on the market.

MARKET INSIGHTS
The county’s vacancy rate is 2.8%, significantly below the national average.
Rents have increased 3.1% annually since 2001.

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Apartment hunting in Northwest Vermont is often a competitive endeavor, given an extremely low vacancy rate and increasing demand from a diverse professional workforce. 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 Vacancy Rate Is Easing

The vacancy rate stood at 2.8% in June, compared with a two-decade average of 1.4%, according to real estate consulting fi rm Allen & Brooks. The region’s vacancy rate has eased this year due to a boost of new apartment construction, such as Finney Crossing in Williston and Riverrun Luxury Apartments in Winooski.

The Vacancy Rate’s Impact on Renters

The higher vacancy rate is allowing renters to take more time when assessing and deciding on which property to lease, although all available units are still fi nding tenants, Allen & Brooks noted. The county’s vacancy rate, while not as low as in the past, is still well below the national average of 4.1%.

Local Hiring

Local employers such as the UVM Medical Center are hiring, with many of the professionals opting to rent before buying. As the economy continues to improve, Coldwell Banker Hickok & Boardman Realty believes more renters will decide to buy homes, which could lead to an even higher vacancy rate.

Competitive Rents

In the meantime, rents continue to be competitive in Chittenden County. The average monthly rent has increased 3.1% annually since 2002, Allen & Brooks found. Wages for some workers haven’t matched that pace, which has caused affordability issues. Residents in Burlington are spending about 44% of income on housing, a level that’s considered unaffordable, according to a report published by the city last year.

Shifting Demand Among Neighborhoods

Some less expensive neighborhoods, such as Burlington’s Old North End, are witnessing an increase in demand because they are more affordable than the Hill Section and other Burlington neighborhoods, Allen & Brooks notes. Some renters are looking for apartments in newly constructed buildings, such as South Village in South Burlington and the Packard Lofts in the Old North End, because of the convenience of living in a newly-built home with amenities.

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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.

Contact Our Rental Specialist

Stephanie Aubert
(802) 503-1150
[email protected]

MARKET INSIGHTS
The county’s vacancy rate is 2.8%, significantly below the national average.
Rents have increased 3.1% annually since 2001.

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Apartment hunting in Northwest Vermont is often a competitive endeavor, given an extremely low vacancy rate and increasing demand from a diverse professional workforce.

The Vacancy Rate Is Easing

The vacancy rate stood at 2.8% in June, compared with a two-decade average of 1.4%, according to real estate consulting firm Allen & Brooks. The region’s vacancy rate has eased this year due to a boost of new apartment construction, such as Finney Crossing in Williston and Riverrun Luxury Apartments in Winooski.

The Vacancy Rate’s Impact on Renters

The higher vacancy rate is allowing renters to take more time when assessing and deciding on which property to lease, although all available units are still finding tenants, Allen & Brooks noted. The county’s vacancy rate, while not as low as in the past, is still well below the national average of 4.1%.

Local Hiring

Local employers such as the UVM Medical Center and Keurig Green Mountain are hiring, with many of the professionals opting to rent before buying. As the economy continues to improve, Coldwell Banker Hickok & Boardman believes more renters will decide to buy homes, which could lead to an even higher vacancy rate.

Competitive Rents

In the meantime, rents continue to be competitive in Chittenden County. The average monthly rent has increased 3.1% annually since 2002, Allen & Brooks found. Wages for some workers haven’t matched that pace, which has caused affordability issues. Residents in Burlington are spending about 44% of income on housing, a level that’s considered unaffordable, according to a report published by the city last year.

Shifting Demand Among Neighborhoods

Some less expensive neighborhoods, such as Burlington’s Old North End, are witnessing an increase in demand because they are more affordable than the Hill Section and other Burlington neighborhoods, Allen & Brooks notes. Some renters are looking for apartments in newly constructed buildings, such as the Packard Lofts in the Old North End, because of the convenience of living in a newly built home with amenities.

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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.

Contact Our Rental Specialist

Stephanie Aubert
(802) 503-1150
[email protected]

MARKET INSIGHTS
The county's vacancy rate is 1.7%, less than half of the national average.
Rents have increased 3.1% annually in the past decade.

Because of an extremely low vacancy rate and new hiring from companies including Keurig Green Mountain, renting an apartment or home in Chittenden County is often competitive.

The county’s vacancy rate stood at 1.7% in December, or less than half the national rate of 4.2%. Because of the tight vacancy rate, renters should plan to add extra time in their search for an apartment or home, especially when compared with regions with more available inventory.

The pace of hiring by local employers, ranging from technology companies such as Dealer.com to retailers like Trader Joe’s, has brought an influx of new professionals into Chittenden County. Our rental expert has found that about half of relocating professionals opt to rent before seeking a home purchase.

Rents are also competitive in Chittenden County, with the average price rising 3.1 percent annually since 2002, according to real estate consulting firm Allen & Brooks. The average rent for a two-bedroom apartment was $1,155 last year.

Average wages in Chittenden County haven’t kept pace with the rise in rents, which means that renters are paying a higher share of their income toward housing costs than in many other parts of the country. Almost two-thirds of renters pay more than 30% of their income toward housing expenses.

Some less expensive neighborhoods, such as Burlington’s Old North End, are experiencing an increase in demand because of the affordability issues, Allen & Brooks notes. Other renters are seeking smaller apartments in newly constructed apartment buildings, because those studios and one-bedrooms may be more affordable than larger apartments in older homes.

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