One Of The Best States To Live In 2025 Also Has One Of The Highest Homeownership Rates

Vermont landed at No. 7 on U.S. News & World Report's list of best states to live in for 2025. The state stands out for its strong public safety, clean environment, and active communities. Life here feels a bit quieter, with that small-town vibe drawing in families, working adults, and retirees alike. Homeownership is a big part of what makes Vermont appealing. As of 2024, Vermont had a homeownership rate of 74.3%, according to the Federal Reserve Bank of St. Louis – well above the QI 2025 national average of 65.1%. That puts Vermont near the top in the country. The typical Vermont home was valued at $398,892, as of April 2025, per Zillow – significantly less than what you'd pay in nearby Massachusetts ($658,231) or New York ($497,621).

Although Vermont is not consistently ranked among America's cheapest states to retire in, its strong sense of community, and overall quality of life, keep drawing new residents of all ages. The U.S. Census Bureau counted 649,493 residents in July 2024, up from 647,464 in 2023, as more people move to Vermont for its walkable downtowns and beautiful scenery.

Vermont's homeownership numbers stay high partly because the state has programs that help potential buyers. The Vermont Housing Finance Agency (VHFA), a government agency that helps homebuyers in the state, currently offers various programs aimed at couples and individuals who are first-time buyers, and those with moderate incomes. The MOVE and ADVANTAGE programs offer the ability to obtain 30-year fixed-rate mortgages at rates starting from 6.25%, though final rates vary by lender. Buyers should consider even minor differences in rates carefully as even a 1% difference in mortgage rates can have a huge effect on monthly payments.

Also, you can borrow up to $10,000 through the ASSIST program to cover down payment and closing costs. It's a zero-interest loan that only comes due when you sell or refinance your home. Apart from this, first-generation homebuyers might also qualify for grants up to $15,000. VHFA's approved lending partners handle the funds, letting buyers cover initial costs without dipping into their savings. Factors for eligibility are credit score, income, and county limits for purchase price based on family size. The idea behind these programs is to lower financial barriers and increase homeownership in underrepresented groups throughout the state.

Vermont often tops quality-of-life rankings. Forbes declared it the safest state in America, with South Burlington taking the safest-city crown. The Vermont Department of Health reported that life expectancy for those born in Vermont to be 80.5 years — above the national 78.7 — thanks to strong public health and environmental standards. Couple this with the state's Green Mountains, pedestrian-friendly downtowns, and vibrant population and Vermont's way of life is easily one of the state's greatest attractions.

However, these perks come at a cost. Vermont's cost-of-living index was 114.9 in 2024 and it ranked No. 10 for most costly states to live in the United States, per Consumer Affairs. The Vermont 2025 Housing Needs Assessment estimated that the number of new homes that would be needed by the state to satisfy demand, and stabilize vacancy rates, is between 24,000 and 36,000. This has pushed home prices and rents up in the last few years. The needs assessment also showed that half of all Vermont renters paid over 30% of their income on housing, with one in four spending more than 50% of their income on rent. Those figures underline a deepening affordability crunch. Plus, according to America's Health Rankings' 2025 Senior Report, Vermont's senior poverty rate rose from 6.1% in 2019 to 9.6% in 2023, making retirement savings crucial for those looking to tackle the state's high living costs.