Homeownership in Vermont is a dream for many—but new research shows that dream comes with a steep price tag. According to Bankrate’s Hidden Costs of Homeownership study released in June 2025, Vermont homeowners spend an average of $22,501 annually on “hidden” expenses like property taxes, insurance, utilities, maintenance, and other upkeep costs. That’s over $1,000 more than the national average of $21,400.
While mortgage payments tend to dominate the conversation around affordability, the Bankrate study sheds light on the often-overlooked financial burdens that accompany owning a home—many of which are unavoidable and steadily rising.
What’s Driving the Rising Costs?
Property Taxes on the Rise:One of the biggest culprits behind these increasing costs is property taxes. Vermont’s scenic landscapes and high-quality public services come at a premium. From 2019 to 2024, property taxes on single-family homes rose an average 27%, according to real estate data firm Cotality. And while home prices can fluctuate, property tax assessments are slower to drop, even if market values soften.
Insurance and Utilities Skyrocketing:Another major contributor is homeowners insurance, which has jumped 24% nationally in just three years. Vermont, like many parts of the country, has experienced an increase in severe weather events, which insurers factor into their risk models—and ultimately, their premiums.
Source: Bankrate's Hidden Costs of Homeownership Study, June 2025
Meanwhile, utility bills—especially for electricity and heating—have surged 30% since 2021. The U.S. Energy Administration attributes these increases to higher transmission and distribution costs, often outpacing the general inflation rate. In cold-weather states like Vermont, heating costs alone can represent a substantial portion of annual household expenses.
Maintenance: The Most Expensive Line Item
Despite rising taxes and utility bills, maintenance remains the single largest hidden cost of owning a home. From routine upkeep like painting and plumbing to larger repairs, these expenses quickly add up. The Harvard Joint Center for Housing Studies notes that average maintenance costs for homes built before 1980 jumped 76% in 2023 alone.
With Vermont’s aging housing stock—much of it built in the mid-20th century or earlier—maintenance is both a necessity and an investment. As more homeowners opt to age in place or renovate rather than relocate, repair spending nationwide is expected to reach $526 billion by early 2026, according to Harvard’s forecast.
What It Means for Homeowners and Buyers
For newcomers to Vermont or those considering a move to the Green Mountain State, these findings underscore the importance of planning beyond the purchase price. While Vermont offers exceptional quality of life, strong communities, and natural beauty, prospective buyers should be financially prepared for the true, full cost of homeownership.
Tips for Managing Hidden Costs:
- Budget Wisely: Factor in at least $20,000 annually in non-mortgage costs when planning your home purchase.
- Shop Around for Insurance: Premiums can vary widely—comparing quotes could save you hundreds.
- Invest in Energy Efficiency: Upgrades like insulation, heat pumps, and solar panels may lower long-term utility bills.
- Schedule Preventative Maintenance: Addressing small issues early can prevent more costly repairs down the line.
Homeownership in Vermont remains a worthwhile investment for many—but as Bankrate’s study makes clear, it pays to go in with eyes wide open.