UVM research to House committee: investor cash and large down payments, not lack of supply, explain Burlington price gains

A University of Vermont researcher told the House Committee on General & Housing on May 7 that investor activity and big down payments, not a simple shortage of housing units, explain much of Burlington’s rise in single‑family home prices.

Joe Amant, a UVM professor, summarized a 20‑year review of Burlington single‑ and two‑family sales and closing documents. He said purchases by buyers listed as LLCs or corporations rose from about 1 percent of sales in 2003 to roughly 20–23 percent in 2023 and that many buyers—investor and non‑investor alike—are making substantially larger down payments than in earlier years. "As investors increase in the market... prices are rising," Amant said, adding that investors can bid higher because large cash or down‑payment positions reduce mortgage‑related risks.

The study’s key finding, Amant said, is how investor presence interacts with down‑payment behavior. By bringing more cash to bids, investors and well‑funded individual buyers can win sales quickly, making listings less effective at moderating price. Amant told the…