By Tony Walton

For months, we've been delving into the far-reaching effects of Vermont's housing crisis—on property taxes, businesses, workforce shortages, and affordability. But what if we continue to sit on our hands? What if we don't seize this moment to take bold action?

👉 The cost of inaction is massive.

  • More local businesses will shut down due to labor shortages.
  • Property taxes will keep rising as housing scarcity drives up home values.
  • Young professionals and working families will leave Vermont, weakening the economy.
  • State spending on emergency housing will skyrocket, draining the budget.

This article will break down:

✅ How failing to build more homes will hurt Vermont's economy

✅ Why inaction will lead to an aging, shrinking population

✅ What Vermont must do now to avoid long-term decline

📝 The True Cost of Not Building More Homes in Vermont

1. The Biggest Housing Problem Vermont Faces? Doing Nothing.

Vermont's housing crisis won't fix itself. If we don't start building more homes now, the costs will only rise—and Vermonters will pay the price.

📌 The contradiction:

  • Everyone agrees that Vermont needs more housing.
  • Every year, leaders talk about solutions—but little gets built.
  • Meanwhile, home prices, property taxes, and workforce shortages keep worsening.

📌 The reality check:

  • If Vermont doesn't act fast, the damage will be long-lasting and difficult to reverse.

💡 Here's what's at stake if we keep delaying new housing.

2. The High Cost of Doing Nothing

  • 📍 1. Vermont's Economy Will Suffer as Businesses Struggle to Find Workers Vermont's economy is already feeling the strain of the housing crisis. Employers are unable to fill jobs due to the lack of local housing. If we don't build more homes, businesses will shrink or close, exacerbating the problem.Employers already can't fill jobs due to the lack of local housing.
  • If we don't build more homes, businesses will shrink or close.

📍 Example: Local Businesses Struggling in Stowe

  • A Stowe hotel had to turn away bookings because they couldn't staff their front desk.
  • A popular local restaurant reduced its hours due to insufficient workers.

💡 The Reality:

  • Vermont's tourism, retail, and healthcare industries depend on workforce housing.

✅ Smart Fix:

  • Build more homes near job centers so businesses can survive and grow.

📍 2. Home Prices & Property Taxes Will Keep Rising

  • Without more housing supply, demand will keep outpacing availability.
  • This means higher property taxes, making Vermont even more expensive.

📍 Example: Burlington Home Prices Have Jumped 50% in 5 Years

  • The median home price in Chittenden County is now over $500K—pricing out middle-income families.
  • If we don't build more housing, prices will keep climbing, forcing out long-time residents.

💡 The Reality:

  • Without more homes, only the wealthy can afford to stay.

✅ Smart Fix:

  • Encourage mid-priced housing developments to stabilize home values and taxes.

📍 3. Vermont's Population Will Keep Aging & Shrinking

  • Young professionals are leaving because they can't afford to buy or rent.
  • Without housing, Vermont will struggle to attract new workers and families.

📍 Example: Vermont's Population Growth Is One of the Slowest in the U.S.

  • The median age in Vermont is now over 42—the second oldest in the nation.
  • If young families leave, schools will close, local economies will shrink, and Vermont will struggle to remain competitive.

💡 The Reality:

  • Housing shortages are directly tied to population decline.

✅ Smart Fix:

  • Make Vermont a place where families can afford to stay and build their lives.

📍 4. State Spending on Emergency Housing Will Spiral Out of Control

  • Vermont already spends $90M+ a year on hotel vouchers and emergency shelters.
  • If housing shortages continue, this cost will rise—draining state funds that could go toward long-term solutions.

📍 Example: Vermont's Motel Housing Program Is Unsustainable

  • Vermont has spent tens of millions keeping people in motels because affordable rentals don't exist.
  • Without new housing, this spending will keep increasing—without solving the problem.

💡 The Reality:

  • Investing in permanent housing is cheaper than endlessly funding temporary solutions.

✅ Smart Fix:

  • Shift state funds from emergency housing to workforce and affordable housing development.

3. The Path Forward: Vermont Must Build or Fall Behind

📌 The cost of doing nothing is too high. Here's what Vermont must do now:

✅ 1. Reform Zoning Laws to Allow More Housing

  • Make it easier to build duplexes, triplexes, and townhomes in growing areas.

✅ 2. Speed Up Permitting & Development Timelines

  • Fast-track workforce housing approvals to prevent years-long delays.

✅ 3. Offer Tax Incentives for Mid-Priced & Workforce Housing

  • Encourage developers to build homes that Vermonters can actually afford.

✅ 4. Prioritize Housing Near Job Centers & Schools

  • People should be able to live where they work—without commuting an hour each way.

💡 If Vermont invests in wise housing policy now, we can control costs, keep businesses open, and sustain local communities.

4. 🚀 Take Action: What Vermonters Can Do to Push for More Housing

📢 1. Demand Housing Action from State & Local Leaders

  • Politicians need to hear from voters that housing is a priority.

📝 2. Support Local Zoning Reforms That Allow More Housing

  • Towns should make it easier—not harder—to build needed homes.

📬 3. Push for Smarter State Housing Investments

  • State funds should go toward long-term housing solutions, not just emergency shelters.

📣 4. Share This Article & Start the Conversation

  • Vermont leaders need public pressure to act.

5. 🖊 About the Author

Tony Walton is a Vermont-based real estate professional with over 20 years of experience in the industry. He has deep roots in the community and a passion for keeping the state livable for future generations. Whether you're buying, selling, or want to talk about Vermont's housing future, reach out at tonywalton@nelandmark.com.

🚨 If Vermont doesn't act now, the cost of inaction will be staggering. If we prioritize housing, rising taxes, workforce shortages, and economic decline aren't inevitable.

Next Week: How Vermont's Housing Crisis Is Reshaping Small Towns & Rural Communities.