Why Fixing Workforce Housing Is the Key to Keeping Vermont's Economy Strong

By Tony Walton

1. Why Can't Vermont Businesses Find Workers? The Answer Is Housing.

Walk down the main street of any Vermont town, and you'll see it: "Help Wanted" signs in many shop windows.

📌 The contradiction:

  • Vermont's unemployment rate is low, yet businesses can't find enough workers.
  • Job openings aren't the issue—the problem is that workers can't find housing they can afford.
  • Many homeowners have turned to short-term rentals (SRTs) to generate income, but this shift has shrunk the long-term rental supply, especially in tourism-heavy towns.

📌 The reality check:

  • This isn't a battle between SRT owners and local businesses. It's about finding a balance that allows Vermont's economy to thrive.
  • If Vermont doesn't expand workforce housing, more businesses will struggle, reduce hours, or close.

💡 The housing crisis is an economic crisis—and we need solutions that work for everyone.

2. How Vermont's Housing Shortage is Hurting Local Businesses

📍 1. Small Businesses Can't Hire Because Workers Can't Live Nearby

  • Local businesses want to hire, but workers can't afford to live where they're needed.
  • Without enough employees, businesses are reducing hours—or closing altogether.

📍 Example: Restaurants in Stowe Cutting Hours Due to Staff Shortages

  • A popular Stowe café had to shut down breakfast service because staff were commuting over an hour each way—and quitting.
  • Nearby, another restaurant reduced dinner service to three nights a week because they couldn't hire enough cooks and servers.

💡 The Reality:

  • Local businesses depend on a stable workforce.
  • If workers can't find affordable housing, businesses can't stay open.

✅ Smart Fix:

  • Fast-track development of workforce housing near job centers.
  • Provide property tax incentives for landlords who offer year-round rentals instead of shifting entirely to short-term stays.

📍 2. Vermont's Tourism Industry is at Risk

  • Ski resorts, hotels, and seasonal businesses need workers, but those workers cannot find housing for the season.
  • Many towns rely on tourism dollars, but without enough workers, visitor experiences suffer.

📍 Example: Killington's Struggle to House Seasonal Workers

  • Killington's resorts need hundreds of workers each winter, but seasonal employees struggle to find rentals within a reasonable distance.
  • Some workers end up sleeping in their cars because they can't find affordable housing nearby.

💡 The Reality:

  • Vermont's tourism economy needs seasonal workers who need reliable, short-term housing options.

✅ Smart Fix:

  • Encourage landlords to participate in seasonal workforce rental programs.
  • Offer tax breaks for property owners who provide mid-term housing for workers.

📍 3. Vermont's Healthcare and Education Sectors Are Struggling to Retain Staff

  • Housing costs aren't just affecting hospitality and retail. Even healthcare workers and teachers are struggling to live near their jobs.
  • When professionals leave Vermont due to housing costs, it affects everyone.

📍 Example: Hospitals in Central Vermont Losing Staff

  • Doctors, nurses, and support staff are turning down jobs because they can't find rentals near hospitals.
  • One nurse had to commute 90 minutes each way because there were no available long-term rentals nearby.

💡 The Reality:

  • Vermont needs to retain skilled professionals, making housing more accessible.

✅ Smart Fix:

  • Develop employer-sponsored housing partnerships for hospitals, schools, and essential service providers.
  • Offer zoning flexibility for multi-family housing near major employers.

3. How Vermont Can Solve This Crisis Before More Businesses Close

📌 The housing crisis isn't just about where people live—it's about keeping Vermont's economy strong.

Here's how Vermont can find a balanced solution:

✅ 1. Expand Workforce Housing Near Job Centers

  • Vermont should prioritize new housing development in areas where businesses need workers.

✅ 2. Support Property Owners Who Provide Long-Term Rentals

  • Instead of restricting short-term rentals, Vermont should encourage balance by offering tax benefits for landlords who commit to long-term leasing.

✅ 3. Incentivize Seasonal & Mid-Term Rentals for Workers

  • Resorts and hospitality businesses should partner with landlords to create a structured seasonal rental market.

✅ 4. Increase Employer-Backed Housing Solutions

  • Major employers should be encouraged to invest in workforce housing projects near hospitals, schools, and industrial hubs.

💡 The Reality:

  • If Vermont doesn't prioritize workforce housing, businesses will keep closing—and workers will keep leaving.

4. 🚀 Take Action: How We Can Save Vermont's Businesses & Economy

📢 1. Demand Workforce Housing Development in High-Need Areas

  • Businesses can't survive if employees can't live nearby.

📝 2. Support Policies That Balance Short-Term & Long-Term Rentals

  • SRTs are essential to Vermont's tourism economy but shouldn't replace all long-term rental options.

📬 3. Encourage Business & Property Owner Partnerships

  • Vermont should reward property owners who offer rentals for workers and professionals.

📣 4. Share This Article & Start the Conversation

  • If Vermont's leaders don't hear from business owners and property owners, nothing will change.

5. 🖊 About the Author

Tony Walton is a Vermont-based real estate professional with deep roots in the community and a passion for keeping the state livable for future generations. Whether you're buying, selling, or just want to talk about Vermont's housing future, reach out at tonywalton@nelandmark.com.

🚨 Vermont's housing crisis isn't just about real estate—it's about keeping businesses open and local economies strong. If we don't invest in workforce housing now, we risk losing the businesses that make Vermont unique.

Next Week: What Vermont Can Learn from Other States That Fixed Their Housing Problems.