Priced Out of the Green Mountain State: Why Some Vermonters Are Eyeing Homes Overseas
While a recent Wall Street Journal report highlights that Americans are leaving the country in record numbers, many Vermonters are beginning to view the international border as a financial lifeline.
For a growing number of people in the Green Mountain State, the math of staying put simply no longer adds up.
Vermont currently faces a stark demographic reality. As of early 2026, the state has recorded the largest population decline by percentage in the United States, losing more than 1,800 residents in the 12-month period ending in July 2025. While many move to neighboring states, a specialized trend of “geo-arbitrage”—moving to a country where the cost of living is significantly lower while maintaining U.S. savings or remote income—is gaining traction among those “priced out” of their own towns.
The Vermont Math: A Crisis of Basic Needs
The financial pressure on Vermonters is not merely a matter of perception. According to the Legislative Joint Fiscal Office, a majority of single-adult households and half of one-earner families with children in Vermont now fall below the “basic needs” income threshold.
In Vermont, a single person may spend an average of $58,958 annually just to cover essentials. This struggle is compounded by a crippling housing shortage of an estimated 30,000 units, which has pushed the median rent to $1,826—well above the national average.
Comparing the Value: Vermont vs. Global Destinations
When Vermonters look abroad, they often find that their monthly budget for a modest apartment in Burlington could fund an entire lifestyle in an expat hub.
Portugal: Widely considered the most affordable country in Western Europe, the overall cost of living is roughly one-third lower than in the U.S. A couple can live comfortably on $2,500 to $3,000 per month.
Mexico: Monthly expenses for a single person typically range from $1,200 to $2,000, including rent. Food prices are notably lower; for example, a liter of milk averages $1.00, and a kilogram of chicken breast is roughly $5.00.
Panama: Known for its territorial tax system, Panama allows expats to avoid local taxes on foreign-earned income, a major draw for remote workers and retirees.
The Property Tax Pincer
For Vermont seniors, the motivation to leave is often driven by property taxes. Vermont is currently ranked as the least tax-friendly state for retirees. While Social Security payments are projected to increase by only 2.8% in 2026, many Vermont towns are facing double-digit property tax increases driven by education spending.
In contrast, many countries abroad offer “Golden Visas” or retiree programs that provide significant tax exemptions on foreign-source income and reduced or non-existent property taxes, allowing fixed incomes to stretch twice as far.
The Logistics of Leaving
The transition, however, is not without hurdles. U.S. citizens are taxed on their worldwide income regardless of where they live. To manage this, expats use tools like the Foreign Earned Income Exclusion (FEIE), which in 2026 allows individuals to exclude up to $132,900 of foreign salary from U.S. federal taxes.
Furthermore, healthcare remains the “biggest gap” for those moving abroad. Since Medicare is not available overseas, private coverage is essential. However, many find that the out-of-pocket costs for world-class care in countries like Spain or Colombia are still a fraction of the premiums and deductibles found in the Vermont health exchange.
What Happens Next
The outflow of residents is forcing a “reality check” in Montpelier. State leaders are currently debating several structural changes aimed at making Vermont more competitive:
Regulatory Modernization: Efforts to reform Act 250 and eliminate subjective zoning standards to lower the cost of new housing.
Tax Stabilization: Proposed legislation (H. 775) to stabilize taxes in some communities and leverage credit facilities for mobile home infrastructure.
Workforce Retention: New initiatives to attract the 25–44 age demographic, a cohort where Vermont currently ranks last in the nation.
As 2026 progresses, the choice for many Vermonters remains a difficult one: wait for legislative relief that may take years to manifest, or seek immediate financial stability in a country where their dollar commands more respect.