Many people are drawn to Burlington for its Vermont environment and the charm of UVM, but often find themselves confused between renting and buying.

Given the limited inventory in the area, it's important to be cautious, so today we will look at the actual numbers.

The median rent for 2-bedroom to 3-bedroom apartments in Burlington is estimated to be between $1,900 and $2,200 per month, which is quite high even for Vermont as a whole.

The unique supply shortage in college towns is believed to be a factor driving up rental prices.

The median home price, based on data from Zillow and Redfin, is confirmed to be around $470,000 to $500,000.

If you divide a home price of $480,000 by the annual rent of $2,050 x 12 = $24,600, the Price-to-Rent Ratio comes out to about 19.5. A ratio between 16 and 20 is classified as neutral, so Burlington is positioned at the upper end of this range, which can be interpreted as slightly leaning towards renting.

Calculating based on a 20% down payment and a 30-year fixed rate of 6.75%, for a $480,000 home, the loan principal would be $384,000, with principal and interest payments around $2,490 per month. Including property taxes and insurance, the total housing cost is expected to be between $2,850 and $3,050 per month. Compared to the rent of $2,050, this suggests a difference of about $800 to $1,000 per month, which may be worth considering for those who are not burdened by this difference in terms of asset building.

Shouldn't we also consider the opportunity cost of investing the $96,000 down payment? Assuming a return of around 7% per year, this could yield a potential income of about $6,700 annually, which may offset the increase in property value when buying, so there is no absolute answer.

Compared to nearby areas, Burlington is among the most expensive in Vermont, and just a little outside to Essex or South Burlington tends to see rental and purchase prices drop by 10% to 15%. Since commuting distances are relatively short, broadening your search to nearby areas could be a good strategy.

Due to the scarcity of listings, many people decide to buy when they find a home they like, but if you have a clear long-term living plan, now may not be a bad time to buy. However, if your budget is tight, it is also a perfectly reasonable choice to continue monitoring the rental market.