Invest In Apartment Buildings In Burlington, VT

Where Burlington's Apartment Demand Comes From

Rental demand in Burlington comes from 10,237 renter households, which is 58.5% of occupied housing (ACS 2020–2024). The number of renter households fell 3.6% over five years, while population was up 5%. That can happen when renters buy homes or rentals are sold to owner-occupants, and it's something we check before assuming rents will keep rising.

Median household income in Burlington, VT is $71,109, up 38.4% over five years. Resident employment rose 5.3% and the unemployment rate was 4.3% in the latest survey. Rent and income have moved at a similar pace (35.9% and 38.4%), so affordability hasn't shifted much.

In a renter-majority market like Burlington, apartments house people across most ages and income levels. That broad tenant base is one reason we follow it.

Rents, Vacancy And Supply In Burlington

Median gross rent in Burlington, VT is $1,649 a month, up 35.9% from $1,213 in the 2015–2019 survey (U.S. Census ACS 2020–2024). That pace was well above long-run norms. We treat it as history, not as a forecast, when we underwrite a building.

The rental vacancy rate is just 2.2%, a tight market by most standards. Census vacancy estimates for smaller places carry wide margins of error, so we check them against current local listings. 55.6% of renters spend 30% or more of their income on housing. That limits how hard rents can be pushed, so renewals and retention matter more than big increases.

About 33.2% of homes in Burlington are in buildings with 5 or more units, roughly 6,006 homes. That count was down 2.2% over five years, so new apartment supply has been limited. The median home was built in 1957. Much of the stock is old enough that roofs, plumbing and electrical systems need a close look, and older buildings are where value-add renovation plans start.

Where Burlington Stands Among Its Peers

We track 7 Vermont cities. Burlington places 2nd for median gross rent, 1st for renter share and 2nd for five-year rent growth. That puts its rents near the top of the group, so tenants here are already paying more than in most nearby markets. In raw numbers, Burlington has about 2,130 more residents, 382 fewer renter households and 135 fewer homes in buildings with 5 or more units than in the 2015–2019 survey. With fewer renter households than before, a building has to win tenants from competitors rather than from new demand.

Burlington Compared With Chittenden County

Burlington's median gross rent of $1,649 is above the Vermont median of $1,234, and its renter share is 58.5% compared with 26.8% statewide.

Rent Versus Income In Burlington

At $1,649 a month, the median Burlington rent adds up to $19,788 a year, or roughly 27.8% of what the median household earns. Under the common 30% guideline, a household needs about $66,000 a year to cover that rent comfortably. That's a heavier load than the Vermont average of 18.2%. Renters usually earn less than the all-household median, so the real burden for tenants is higher than this simple ratio shows.

In dollars, Burlington rent climbed $436 a month over five years and household income climbed $19,730 a year. The two have moved together, so affordability today looks much like it did five years ago.

Quick Facts: Burlington Rental Market

These are the core numbers for Burlington, VT, each from the Census Bureau's American Community Survey.

• Burlington, VT has 44,675 residents, up 5% from the 2015–2019 survey (U.S. Census ACS 2020–2024).
• Median household income in Burlington, VT is $71,109, up 38.4% over five years (U.S. Census ACS 2020–2024).
• Median gross rent in Burlington, VT is $1,649 a month, up 35.9% over five years (U.S. Census ACS 2020–2024).
• 58.5% of households in Burlington, VT rent, about 10,237 renter households (U.S. Census ACS 2020–2024).
• 33.2% of homes in Burlington, VT are in buildings with 5 or more units (U.S. Census ACS 2020–2024).
• The rental vacancy rate in Burlington, VT is 2.2%, and 55.6% of renters spend 30% or more of income on rent (U.S. Census ACS 2020–2024).
• The median home in Burlington, VT was built in 1957 (U.S. Census ACS 2020–2024).

What We Look For In A Burlington Apartment Building

We look at buildings with 5 or more units in Burlington, from small walk-ups to larger garden-style communities, in stabilized or value-add condition. We compare in-place rents with nearby buildings, inspect roofs, plumbing and HVAC, and ask whether better management or targeted renovation can close the gap with the market.

Property taxes are a big line item for any Vermont apartment building. We estimate the tax bill as it will be after the purchase, because a sale can trigger a reassessment in many places. Vermont has no statewide rent control law, though local rules on notices, fees and deposits still apply. Insurance quotes in Vermont reflect winter storm and frozen-pipe claims, so we get a quote before we make an offer.

After a stretch of fast rent growth, we keep rent assumptions modest and leave room for concessions if new supply opens nearby.

Evaluating Apartment Syndications In Burlington

Whoever the sponsor is, these are the questions we would want answered about any apartment syndication in Burlington, based on the local numbers above.

• What vacancy does the plan assume? Rental vacancy in Burlington is 2.2%. A plan that assumes much lower vacancy than the market should explain why.
• What rent growth is underwritten? Rents here rose 35.9% over five years. Ask whether the plan assumes that pace continues, and what happens to the deal if rents stay flat.
• How was the property tax bill estimated? A sale often triggers a reassessment, so the bill after purchase can be well above what the seller pays today.
• What capital work is budgeted? The median home in Burlington was built in 1957, so roofs, plumbing and electrical systems deserve their own line items.
• How will the building hold occupancy? Renter households in Burlington fell 3.6%, so the plan should show how it keeps units full.
• How and when does capital come back? Ask what the plan is for a refinance or sale, and what happens if that takes longer than expected.

How Passive Investing In A Burlington Apartment Syndication Works

Two groups make an apartment syndication work. The sponsor, or general partner, handles the deal: finding the building, financing it and running the business plan. The limited partners are passive investors who contribute capital and share in the property's results under the offering's terms.

It's a long-term commitment. The property has to be refinanced or sold before most capital comes back, and the outcome isn't certain. Eligibility rules vary by offering, and most are limited to accredited investors. See investing with Skyline Capital for how we work with limited partners.

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