Vermont’s real estate values have increased and surpassed that of the New York region, thanks to an improved transportation scheme as well as competitive airline rates.

The price of houses in Burlington, Vermont rose to 3.6 percent during the last quarter of last year, besting the 3.5 percent increase in the price of houses in the New York region during the same period.

Chris Tagatac, former vice president of Citigroup, Inc., said “It’s about as far as you can get from Wall Street and it’s only an hour away by air.”  Tagatac and his wife Ashley moved to Stowe, Burlington in 1994. 

The rising rate of Vermont’s real estate is deemed to have been influenced by airlines competing for flights between New York and Burlington.  Economist Lawrence Yun of the National Association of Realtors said a price jump is expected when vacation home regions become more accessible due to an improved transportation scheme.

What happened to Vermont is also being experienced in Coeur d’Alene in Idaho. A real estate boom was also evident in the area after the expansion of the Spokane, Washington Airport.

JetBlue Airways Corporation and Delta Air Lines, Inc. are among the two airlines competing for more flights to Vermont. JetBlue Airways increased the frequency of its flights to Burlington last October but Delta Air Lines promised to increase its flights from New York to Burlington this July, to match the number of flights offered by JetBlue Airways. US Airways and Continental Airlines also offer respective flights from New York and from Newark to Burlington.

Despite increasing g real estate values, Vermont properties are considered a bargain compared to the sky rocketing real estate prices in Manhattan which has an average price of $1.3 million.

Long time Vermont dwellers are also cashing in on the real estate hype. Remember the Von Trapp family of “The Sound of Music”?  They are eyeing a $4.5 million expansion for the Trapp Family Lodge in Stowe.  The Stowe Mountain Resort owned by AIG is also in the process of developing a housing community with a price of up to $6 million per unit, at the base of Spruce Mountain.

By Alexa Ancheta

Real Estate Press