Burlington Area News

Burlington's Tight Rental Market

Photo Credit: ©Eve Event Photography LLC

As Burlington’s housing market tightens, renters are reporting extreme difficulty in finding suitable and affordable housing in the Burlington area.  Over the past decade, Chittenden County’s rental vacancy has hovered around 2%.  The figure rose to 2.6% during the pandemic but has plummeted to 1.1% in a recent survey conducted by Allen, Brooks, and Minor.  Landlords are reporting unusually high demand on their postings with one landlord reporting over 50 inquiries in a two week span on a single vacancy.

Vermont has seen a large increase of out of staters migrating which has squeezed the market even more.  Landlords are also facing pressure as a city wide reassessment on property values has increased property taxes.  These factors have ramped up the demand as well as the cost of living in Chittenden County.  

For more details check out the Vermont Digger Article, “Burlington’s tightening housing market has renters scrambling

** If you are interested in learning more about the Burlington Housing Market please give Steve a call at [802] 846-9575 or email us at Team@LipkinAudette.com

Resolution to Pay Workers Prevailing Wage Pushes Through City Place Settlement

Photo Credit: ©James Buck | Seven Days

 

Last Tuesday night, the Burlington City Council dropped their previous lawsuit and unanimously approved the new development agreement for City Place.  Six years after the plans were first introduced, the project is now scheduled to commence no later than September 2022.  

The vote was previously delayed as it did not guarantee union workers labor for the project.  Earlier this week, Mayor Weinberger negotiated a deal with the developers that promised workers prevailing wage rates that pushed the vote through.  Now that the legal battle is over, the project is set to restart and turn “the pit” into an innovative city center. 

For more details check out the Seven Days Article, “Burlington City Councilors Approve CityPlace Settlement”.

** If you are interested in learning more about the development / housing in Burlington and the surrounding communities please give Steve a call at [802] 846-9575 or email us at Team@LipkinAudette.com

2020 Multi Family Review & 2021 Forecast

The demand for Chittenden County Multi Family remains strong despite the most tumultuous year in any of our lifetimes. The Burlington area rental property market is well-positioned to endure bumps in the road while maintaining a consistent and moderate upward trajectory. A close look at the key metrics offers optimism for both tenants and landlords alike.

The Chittenden County apartment market is experiencing the lowest apartment vacancy rate in the last 6 years according to Allen, Brooks & Minor (December 2020 = 1.1%). Government sponsored rental housing stabilization funding and a decrease in new construction coming on line are key contributing factors to the record-low vacancy rate. Anecdotally, we've also heard that student rental properties reported very few delinquencies even with the challenges that local universities are facing with in-person learning during a pandemic.

The decrease in new apartments was heavily influenced by a six-week shutdown of all non-essential new construction in Spring of 2020 and a limited supply of labor and materials. Growth is projected to rebound in 2021 with Burlington accounting for one-quarter of all new projected units in Chittenden County. New construction at Eric Farrell’s Cambrian Rise is expected to account for the majority of Burlington’s apartment growth in 2021- in the meantime, there is renewed optimism at the long delayed CityPlace Burlington project. The new proposal includes over 400 units of housing- but isn’t expected to contribute to growth figures until phase one is completed in 2023 (hopefully!). Nearly 25% of Chittenden County’s new apartment growth will be within existing buildings like hotels and office buildings that are being redeveloped. In Essex, apartment growth will be concentrated in three separate projects all in the Five Corners neighborhood whereas Winooski is projected to add additional units along the primary gateways, including East Allen and Main Street.

Demand from Multi Family investors fueled an increase in apartment sale prices, which similar to residential sales, was driven in part by historically low interest rates. The average sale price for 2020 was $552,952, up 16.3% from 2019. The average price per bedroom increased by 2.7% and the average price per square foot grew by 7.5%. Meanwhile, the annual rent inflation percentage has trended in the opposite direction from nearly 3% in 2015 to just over 1% in 2020. This data suggests that in 2020, landlords have been more focused on tenant retention and rent loss prevention versus increasing tenant rents to help offset the added operating expenses. Despite the increase in sale prices, Cap Rates remained relatively unchanged in large part due to flat rents and the average operating expense ratio growing from 30% to 33% over the past 6 years. Burlington Multi Family sales in 2020 saw an average sale price of $773,863 and a list to sale ratio of 96.6%. The average cap rate for sales in Burlington in 2020 was 6.77%.

As reported by numerous national publications, Burlington is consistently ranked as one of the top places in the United States to live. The Burlington region is now benefiting from a surge in remote workers migrating from major cities seeking a better quality of life coupled with an emerging hi-tech workforce- most notable at Russ Scully’s redeveloped 143,022 square foot HULA campus on Burlington’s waterfront. Despite the chaos of 2020, the Burlington area Multi Family market fundamentals are solid, and we continue to see strong investor confidence. 

Having helped hundreds of local clients build wealth through real estate investing, the Lipkin Audette Team understands that, as is the case with any investment, a successful investment strategy needs to be designed to fit an individual’s particular set of needs and goals. If you’d like to speak with our team about how to get started or what the current market value of your property / portfolio might be, give us a call anytime at [802] 846-9575 or email Steve@LipkinAudette.com.   

Burlington and South Burlington Rank Among The Top Safest Cities in the U.S.

Vermont is again receiving national recognition. This time for having two of the safest cities in the U.S.  In a study comparing 180 cities across 42 indicators, South Burlington ranked second safest while Burlington ranked the sixth safest. The study considered the fewest assaults per capita, fewest traffic fatalities per capita, lowest unemployment rate, and lowest number of uninsured population. Some indicators have a bigger multiplier and are weighted more heavily than others. For example the average Covid-19 cases over the last seven days per 100,000 people carries a triple weight and accounts for 6.8% of the score, tied for highest out of any category. Vermont has the second fewest cases per 100,000 people at 1,809, only trailing Hawaii by a slim margin.  It goes to show that implementing strict Covid guidelines and having a community devoted to caring about each other can help shape two of the safest cities in the country. Especially during these crazy times, a sense of peace, calm and safety is more important than ever.

To read more about the safest cities in the U.S. and see the full list of rankings click the link below.

Safest Cities in America | WalletHub.com

If you are interested in relocating to Vermont or would like to learn more about single family and multi family homes in Chittenden County, please give Steve Lipkin a call at [802] 846-9575 or email us at Team@LipkinAudette.com

Burlington Welcomes Large Increase in Remote Workers

Over the past few years, Burlington has seen an increase in remote workers, especially from the IT industry. Many of these new Vermonters are moving from larger tech hub spots such as Seattle, San Francisco, and Los Angeles where the cost of housing has risen significantly. Recent reporting by NPR shows that Burlington VT is one of the top 5 cities in the country when it comes to an increase in migration to smaller cities from major metro areas during the COVID-19 pandemic.

Migration to Burlington from large cities was up 103% in the Spring of 2020 compared to that of 2019. This is in large part thanks to the increasing ability of IT workers ability to work remotely.  The number of remote information technology job postings is up 58% compared to the same period last year. 

To read more from NPR about the surge of remote workers moving to Burlington and other smaller cities click the link below:

Small Cities Are A Big Draw For Remote Workers During The Pandemic | NPR.org

* Having helped countless clients relocate to Burlington and the surrounding towns, the Lipkin Audette Team understands the importance of finding the right home.  If you’d like to speak with our team on how to get started in relocating to Chittenden County give us a call anytime at [802] 846-9575 or email Steve@LipkinAudette.com.

 

 

Burlington CityPlace | Local Partnership Steps Up

(Image Courtesy of Freeman French Freeman)

UPDATE:  It has been six years since developer Don Sinex first introduced his plans for the CityPlace Burlington project in the former site of the Burlington Square Mall.  Having overcome many obstacles along the way, the project hit its most serious roadblock this past summer when business partner and multinational company, Brookfield Asset Management, pulled out of the deal and sold their 50% share of the development back to Sinex.

According to Sinex, Brookfield’s decision to withdraw from the project did not come as a big surprise to either him or the city of Burlington.  In fact, it was during this past January when, in anticipation of the moment, Sinex had initiated a conversation with a trio of local businessmen about taking over the project for if / when Brookfield officially pulled out.

The trio turned out to be a natural fit as they are all well respected local Vermonters with years of experience with construction and development in our area.  Stepping up in place of Brookfield came Dave Farrington (President, Farrington Construction), Al Senecal (Owner, Omega Electric Construction) and Scott Ireland (President, S.D. Ireland).  With all three having previously consulted on the project, their familiarity with the development plans enabled the new local partnership to quickly file zoning permits and release their revised proposal to the city and community.

Taking into account feedback from the local community as well as the side effects that the pandemic has had the downtown business landscape, the new plans no longer include the once-proposed 196-room hotel, additional office space and two 14-story towers.  Instead, the plan calls for an increase in the number of housing units to a total of 426, including 84 that fit the criteria of “affordable housing”.  The two towers remain prominent design elements but are downsized to one 10-story tower and one 9-story tower, with the southern tower to also include a rooftop restaurant and observation deck.

While there remain many more hurdles that need to be jumped before construction can begin again, there is growing optimism that the new CityPlace concept could be the jumpstart that downtown Burlington needs after being hit hard by the global pandemic.  For more details check out the Seven Days article “A New Developer Team Wants a Shot at Building CityPlace Burlington”.

** If you are interested in learning more about the development / housing in Burlington and the surrounding communities please give Steve a call at [802] 846-9575 or email us at Team@LipkinAudette.com

Single Family Homes as Rental Properties

Investing in real estate, like every other kind of investment strategy, is most effective when it’s uniquely personalized to an individual’s (or groups) risk tolerance, capacity and goals. 

While a lot of attention is paid to multi family properties that offer several units within the same building and/or property, purchasing a single family home as an investment property can offer certain advantages such as long-term renter stability, non-HOA property maintenance and lower management costs.

In a recent article published by RIS Media, author Meghan Belnap highlights four major qualities to look for when selecting a single family home as an investment property.  Click on the link below to read the entire article…

What to Look for in a Single Family Investment Property | RIS Media Housecall

If you are interested in getting started with investing in real estate or would like more information on the local investment property market, please give Steve Lipkin a call at (802) 846-9575 or email Team@LipkinAudette.com

Managing Food Scraps at Rental Properties

As the final piece of the Universal Recycling Act (Act 148) that was passed by the Vermont State Legislature back in 2012; starting on July 1, 2020, food scraps are banned from being included in traditional residential trash containers. In addition to the obvious issues that the new law creates on homeowners, owners of rental properties are now faced with additional challenges in how to properly manage the three kinds of defined material waste.

In offering guidance on the subject, the State of Vermont has provided landlords with a quick reference guide that outlines best practices that landlords can take to adhere to the new waste policy.  Below are links to the FAQ guide as well as additional resources including signs / posters that can be used to help instruct tenants on where to properly place their waste...

For Landlords - Managing Food Scraps at Rentals | State of Vermont Guide

Download / Print Signs & Symbols - Universal Recycling Law | Department of Environmental Conservation

VTrecycles.com | Solid Waste & Recycling Program Home Page | Vermont Agency of Natural Resources

Food Scrap Ban Resources | LipkinAudette.com

If you are a landlord with additional questions or would like discuss this or anything else related to rental / investment properties please don't hesitate to email us anytime at Team@LipkinAudette.com or call Steve Lipkin at (802) 846-9575...

          

 

Vermont Economic Recovery & Relief Package

Source: State of Vermont 

On May 20th, Governor Phil Scott outlined an economic recovery & relief package using $400 million of $1.25 billion the state received as part of the Federal CARES Act.  The two-phase plan first addresses the businesses and industries that were impacted most, with $310 million designated to sectors that are in need of immediate relief.

Included in phase one is $50 million designated for housing assistance, with the majority of the funds to be used to cover situations where impacted tenants cannot pay rent and as a result, landlords are financially impacted.  The program is open to all rental property owners with a maximum of 20 units assisted per owner.  According to VermontBiz.com, "payments will be disbursed through housing service provider(s) selected through the RFP process with oversight authority through the Department of Housing and Community Development."

The second phase consisting of the remaining $90 million focuses on long-term recovery and investments in broadband internet, job training, permit modernization and additional housing assistance.  It is estimated that over 13,000 Vermont households could be assisted using funds from phase one of this newly enacted bill.

For more details on the package, check out the COVID-19 Recovery Resource Center on the state of Vermont ACCD Website  or view / download this informational 12 page Resource Guide.  

For additional insight or questions on the VT Multi Family real estate market, don't hesitate to email us anytime at Team@LipkinAudette.com or give us a call at (802) 846-9575. 

Working Through the Challenges of COVID-19

 

To Our Valued Clients, Customers & Community,

 

I hope you and your family are well. It’s hard to put into words the many emotions that we are all facing in dealing with this unprecedented health crisis. Like you, we are taking things one day at a time while remaining resilient and steadfast in our goal to continue to provide our clients with the same above & beyond level of service that members of our team have proudly offered for the last 30+ years in our local community.

Most importantly, our thoughts and prayers go out to all those affected by COVID-19 across the globe. As the virus continues to impact our community and everyday way of life, we feel that is it important to communicate with you directly to share more about the steps that we are taking to help do our part in limiting the spread and keeping the health & safety of our trusted clients and team members as our number one priority.

We have asked the dedicated agents and staff of the Lipkin Audette Team to work remotely, with additional technology and support being provided by the amazing leadership team at Coldwell Banker Hickok & Boardman.

Until further notice, all upcoming open houses have been canceled. Fortunately, many of our listings have interactive virtual 3D tours enabling Buyers to tour the entire property from anywhere with an internet connection.  Accordingly, we are substituting personal meetings with Facetime or Microsoft Teams, contracts and all documents are seamlessly being passed & signed electronically using Dotloop. We feel very fortunate that our commitment to advanced technology is allowing us to continue to serve our valued clients and community.

Recognizing the vital importance that Home plays in everyone’s life, we are constantly adapting and will continue to help our community list, sell and buy homes. If there is anything we can do to help, please don’t hesitate to email us at team@LipkinAudette.com or give us a call at [802] 846-8800. We are amazed by the support and love that our community has shown in these difficult times and are fully committed to doing whatever it takes to help and support our neighbors in need!

 

Best, the Lipkin Audette Team