What Is The Cost of Living in Vermont

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The Cost of Living in Vermont: An In-Depth Exploration

Nestled in the picturesque landscapes of New England, Vermont offers a unique blend of rural charm and cultural vibrancy. Whether you’re considering a move or just curious about the Green Mountain State, understanding the cost of living in Vermont is crucial. From housing to groceries and healthcare, let’s explore the financial realities of life in this charming state.

Housing: A Significant Factor

Housing typically represents the largest expense for residents, and Vermont is no exception. According to the U.S. Census Bureau, the median home value in Vermont is around $267,000. This figure is slightly above the national average, reflecting the state’s desirability and limited housing inventory. Cities like Burlington, known for its vibrant arts scene and University of Vermont, see even higher prices, pushing the median above $300,000.



Rental prices are also on the rise. For a two-bedroom apartment, expect to pay approximately $1,200 per month. While this is lower than the national average for similar metropolitan areas, it can be challenging for those with lower incomes or students. The Vermont Housing Finance Agency offers programs to assist first-time homebuyers, but competition remains fierce.

Utilities and Transportation: Essential Costs

Utilities in Vermont can be a mixed bag. The state is a leader in renewable energy adoption, which has helped stabilize electricity costs to some extent. However, the cold winters lead to higher heating expenses. On average, residents might spend about $150 per month on electricity and heating combined, depending on the season and energy efficiency of their homes.

Transportation is another critical factor. Vermont’s rural nature means that public transportation options are limited outside of larger cities like Burlington and Montpelier. This often necessitates owning a vehicle, with costs including gas, insurance, and maintenance. The average cost of gasoline hovers around $3.00 per gallon, and annual vehicle maintenance can add up significantly.

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Groceries and Dining: Balancing Costs

When it comes to groceries, Vermont is known for its local and organic offerings. This focus on quality can sometimes lead to higher costs compared to the national average. The Bureau of Labor Statistics suggests that a typical family might spend around $350-$400 per month on groceries. However, this can vary widely based on dietary preferences and shopping habits.



Dining out in Vermont offers a range of options from farm-to-table restaurants to quaint diners. A meal at a mid-range restaurant might cost about $15-$25 per person. While not exorbitant, it can add up quickly for those who frequently dine out. Local farmers’ markets provide an affordable alternative, offering fresh produce and goods directly from the source.

Healthcare: A Critical Consideration

Healthcare is a significant consideration for anyone evaluating the cost of living. Vermont boasts a robust healthcare system and is known for its progressive policies. The state government, along with the Vermont Department of Health, strives to provide accessible and affordable care. Yet, healthcare costs remain a concern for many residents.

The average health insurance premium for a family can be over $1,000 per month, though this varies based on plans and providers. Out-of-pocket expenses can also be significant, particularly for those with chronic conditions or specialized healthcare needs. Programs like Medicaid and Vermont Health Connect aim to alleviate some of these burdens, but understanding the full scope of healthcare costs is essential for prospective residents.



Education and Childcare: Investing in the Future

For families, education and childcare are key components of the cost of living. Vermont is renowned for its high-quality education system, with public schools often ranking among the best in the nation. This quality comes with a price; property taxes, which fund schools, can be relatively high, averaging around 1.76% of a home’s assessed value.

Childcare costs can also be significant. The average cost for infant daycare is about $1,000 per month. To offset these expenses, Vermont offers programs such as the Child Care Financial Assistance Program to support low and moderate-income families.

Entertainment and Lifestyle: Enjoying Vermont

Despite its rural reputation, Vermont offers a variety of entertainment and lifestyle options. Outdoor enthusiasts will find plenty to enjoy, from skiing in the Green Mountains to hiking the Appalachian Trail. These activities often come with minimal costs, particularly if you already own the necessary gear.

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Cultural events, art galleries, and music festivals add to the lifestyle appeal. While tickets and entry fees can vary, many local events are affordable, allowing residents to enjoy the state’s rich cultural tapestry without breaking the bank.

Taxes: Understanding the Impact

Taxes are an unavoidable aspect of living anywhere, and Vermont is no different. The state has a progressive income tax system, with rates ranging from 3.35% to 8.75%. Sales tax is relatively low at 6%, but additional local taxes in some areas can increase this slightly. Property taxes, as mentioned, are significant, reflecting the state’s investment in community services and education.

Final Thoughts: Is Vermont Right for You?

Deciding whether Vermont is the right place for you involves weighing these costs against the lifestyle benefits the state offers. With its stunning landscapes, focus on sustainability, and community-oriented living, Vermont attracts those who value quality of life over urban hustle and bustle.

However, potential residents should carefully consider their financial situation, given the higher-than-average costs in areas like housing and healthcare. For those who can balance these expenses, Vermont provides a rewarding and enriching living experience.

In conclusion, the cost of living in Vermont is shaped by its unique blend of rural charm and communal values. While certain expenses are higher than the national average, the state’s commitment to quality of life, education, and sustainability makes it an attractive choice for many. Whether you’re drawn by the allure of its natural beauty or the promise of a close-knit community, Vermont offers a distinctive way of life that, for many, is well worth the cost.

Dave Pennells

By Dave Pennells

Dave Pennells, MS, has contributed his expertise as a career consultant and training specialist across various fields for over 15 years. At City University of Seattle, he offers personal career counseling and conducts workshops focused on practical job search techniques, resume creation, and interview skills. With a Master of Science in Counseling, Pennells specializes in career consulting, conducting career assessments, guiding career transitions, and providing outplacement services. Her professional experience spans multiple sectors, including banking, retail, airlines, non-profit organizations, and the aerospace industry. Additionally, since 2001, he has been actively involved with the Career Development Association of Australia.