Why Vermont Needs to Work WITH Builders—Not Against Them—to Solve the Housing Shortage
1. Vermont Needs More Housing—And We Can't Do It Without Developers
📌 Hook:
Vermont's housing crisis is growing worse, and we can't solve it without the people who actually build homes.
📌 The contradiction:
- Developers are often blamed for rising home prices, but without them, Vermont wouldn't have any new housing at all.
- The state wants more workforce housing, but its own policies make it difficult and expensive to build.
- Some fear that developers only care about profits, but many want to create housing that benefits Vermont's economy and local families.
📌 The reality check:
- Vermont has some of the country's slowest and most expensive permitting processes—delaying projects and increasing costs.
- Zoning laws prevent builders from constructing the housing we actually need, such as duplexes, townhomes, and mixed-use developments.
- Construction costs are rising, making it nearly impossible for developers to build affordable homes without incentives.
💡 If Vermont wants more housing, it must work with developers—not against them.
2. What's Stopping Developers from Building More Affordable Homes in Vermont?
📍 1. The Cost of Building Is Too High
- Building materials, labor, and land costs have skyrocketed, making it difficult to build homes priced for middle-class Vermonters.
- In many cases, building a home costs more than local buyers can afford to pay.
📍 Example: A Missed Opportunity in Central Vermont
- A developer wanted to build 20 homes in a small Vermont town—but after calculating costs, they realized:
- Cost per unit: $350K
- The market price for an "affordable" home: $275K
- Loss per unit: $75K
- Instead of taking a financial loss, they had to pivot to higher-end housing.
💡 The Reality:
- Developers aren't avoiding affordable homes—they can't afford to build them under current conditions.
✅ Smart Fix:
- Expand Vermont's "Missing Middle" Housing Program to offset costs for builders constructing homes in the $250K-$400K range.
- Offer tax credits and waived fees for developers building starter homes and workforce housing.
📍 2. Slow Permitting & Zoning Laws Make Development Risky
- Vermont's permitting process is one of the slowest in the country, making it hard for developers to move quickly on housing projects.
- Zoning laws restrict multi-family housing, forcing builders to focus on single-family homes on large lots and driving up prices.
📍 Example: Montpelier's Housing Delays After the 2023 Floods
- After devastating floods in Montpelier, developers wanted to rebuild quickly, but zoning and permitting rules slowed down projects.
- Housing that could have been ready in months has been stuck in review for over a year.
💡 The Reality:
- If Vermont wants more affordable housing, it must streamline approvals for well-planned projects.
✅ Smart Fix:
- Fast-track approvals for workforce housing in designated Smart Growth Zones.
- Allow multi-family housing in more areas by reforming outdated zoning laws.
📍 3. Developers Are Willing to Build Workforce Housing—If the State Works With Them
- Many Vermont builders want to create homes for local families, but they need state and town policies that support these projects.
- When zoning boards and planning commissions collaborate with developers, housing is built faster and at a lower cost.
📍 Example: How a Public-Private Partnership in Middlebury Led to More Housing
- Middlebury partnered with a developer to convert an underused property into workforce housing.
- The town helped with zoning flexibility, waived some fees, and provided tax incentives.
- Result? 50 new homes that local workers could actually afford.
💡 The Reality:
- Developers aren't the enemy—bad policies are.
✅ Smart Fix:
- Encourage more public-private partnerships where developers work with towns to meet local housing needs.
- Offer financial incentives for projects that prioritize Vermont residents over investors.
3. The Path Forward: How Vermont Can Work WITH Developers to Solve the Housing Crisis
📌 Not all developers are the same.
- Some focus on luxury homes because that's where they can make a profit.
- Others want to build workforce housing but face regulatory hurdles.
- Vermont should reward the builders who prioritize local housing needs and remove obstacles that discourage them.
✅ 1. Create "Fast-Track" Approval for Workforce Housing
- Developers should be able to break ground on workforce housing projects in under a year and not spend years battling zoning boards.
✅ 2. Expand Incentives for Mid-Priced Housing
- Tax breaks for projects that include starter homes, duplexes, and townhomes.
- Grants for Vermont-based builders who prioritize local buyers.
✅ 3. Modernize Zoning Laws to Allow Smart Growth
- Expand multi-family zoning in town centers so developers can build housing where people need it most.
- Reduce minimum lot sizes to allow for smaller, more affordable homes.
✅ 4. Create Public-Private Partnerships for Workforce Housing
- Developers shouldn't have to go it alone—towns and the state should help make workforce housing financially viable.
4. 🚀 Take Action: How We Can Partner With Developers to Solve Vermont's Housing Crisis
📢 1. Demand Faster Approvals for Workforce Housing
- After endless zoning battles, Vermont needs housing now, not years from now.
📝 2. Support Zoning Reform to Allow More Diverse Housing
- Duplexes, triplexes, and townhouses shouldn't be illegal in high-demand areas.
📬 3. Advocate for More Missing Middle Housing Incentives
- Developers won't build mid-priced homes without financial incentives to offset high costs.
📣 4. Share This Article & Start the Conversation
- If Vermont's leaders don't change policy, developers will keep building luxury homes for second-home buyers instead of affordable housing for locals.
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 want to talk about Vermont's housing future, reach out at tonywalton@nelandmark.com.
🚨 Developers want to build the housing Vermont needs—but they can't do it alone. If Vermont wants real solutions, it's time to partner with builders and prioritize workforce housing.
Next Week: How Vermont's Housing Crisis Impacts Local Businesses & Jobs.
