We've spent weeks breaking down Vermont's housing crisis—from zoning laws to workforce shortages. But Vermont isn't the only state that has faced these challenges.
Other states have overcome housing shortages with smart policies, proving that solutions exist—if we're willing to act.
This article will break down:
✅ How states like Oregon, Montana, and Maine have tackled housing shortages
✅ What Vermont can adopt from their success
✅ The policies that work—and what Vermont should avoid
📝 What Vermont Can Learn from Other States That Fixed Their Housing Problems
1. Opening: Vermont's Housing Crisis Isn't Unique—But Other States Have Found Urgent Solutions:
Vermont's housing crisis is not just a challenge, it's a pressing issue that demands our attention. But we're not alone in this struggle. Other states have faced similar crises and found solutions.
📌 The contradiction:
- Vermont's leaders say fixing housing is complicated, but states like Oregon, Maine, and Montana have already taken bold steps.
- We keep debating the same policies while other states are building more homes and lowering costs.
📌 The reality check:
- Vermont can solve this crisis—but only if we follow the lead of places that have already succeeded.
💡 So what has worked elsewhere—and what can we learn from it?
2. Case Studies: What's Worked in Other States
📍 1. Oregon: Ending Single-Family Zoning to Increase Housing Supply
- Oregon made history in 2019 by passing House Bill 2001, eliminating single-family zoning in most cities.
- This allowed duplexes, triplexes, and townhomes to be built in areas that previously only allowed single-family homes.
📍 Result:
- More housing was built faster.
- Home prices stabilized because supply increased.
💡 What Vermont Can Learn:
✅ Update zoning laws to allow more duplexes, triplexes, and townhomes.
✅ Encourage infill development instead of forcing sprawl.
📍 2. Montana: Reducing Permitting Red Tape to Speed Up Construction
- In 2023, Montana passed a statewide housing reform bill that streamlined permitting and zoning approvals.
- The law limits how long towns can delay projects and prevents unnecessary environmental reviews that slow down housing.
📍 Result:
- Developers can build homes faster and at lower costs.
- New housing is being built in rural and urban areas alike.
💡 What Vermont Can Learn:
✅ Fast-track permitting for workforce housing and multi-family projects.
✅ Prevent unnecessary delays that make housing more expensive.
What Vermont Can Learn from Maine
Maine: Expanding ADU Incentives to Increase Rental Housing
- Maine legalized ADUs (backyard cottages, in-law apartments) statewide, allowing homeowners to build small rental units on their property with fewer restrictions.
- The state offered larger grants and low-interest loans to help cover construction costs—removing a major financial barrier.
- Zoning laws were adjusted to make ADUs “by right,” meaning they can be built without needing special permits, as long as they meet safety standards.
📍 Result:
- More rental housing without large new developments.
- Property owners benefited from extra income while helping solve the housing crisis.
💡 What Vermont Can Learn:
- Vermont already allows ADUs and provides some grants, but awareness and funding remain barriers.
- Maine took ADU incentives further, ensuring that more homeowners could afford to build them.
✅ How Vermont Can Improve Its ADU Strategy:
✔ Expand grant funding for ADUs so more homeowners can access financial assistance.
✔ Streamline permitting even further, making ADUs easier to build in all residential areas.
✔ Help homeowners with septic and utility upgrades by offering additional low-interest loans.
✔ Improve outreach and education so more Vermonters know about the benefits and financial assistance available for ADUs.
3. What Vermont Should Avoid—Mistakes Other States Have Made
📌 Not every policy works. Here's what Vermont should avoid:
❌ Rent Control (California & New York's Failed Experiment)
- While rent control seems like a solution, it actually discourages developers from building rental housing.
- In places like San Francisco and New York, rent control led to fewer rental units and higher housing costs.
✅ Better Solution: Instead of rent control, increase housing supply to lower rents naturally.
❌ Over-Regulating Short-Term Rentals (Hawaii's Mistake)
- Hawaii tried banning short-term rentals (SRTs), which hurt small property owners relying on SRT income.
- The state also lost tourism revenue, and housing prices barely dropped.
✅ Better Solution: Balance SRTs by offering incentives for landlords to provide long-term workforce housing.
4. How Vermont Can Take Action—NOW
📌 Vermont doesn't need to reinvent the wheel. Other states have shown us the path forward.
✅ 1. Reform Zoning Laws Like Oregon
- Allow duplexes, triplexes, and townhomes in more areas.
✅ 2. Streamline Permitting Like Montana
- Fast-track workforce housing approvals so projects aren't delayed for years.
✅ 3. Encourage ADUs Like Maine
- Help homeowners create more rental units by making ADU construction easier.
✅ 4. Balance Short-Term Rentals Without Over-Regulating
- Encourage SRT owners to rent to seasonal workers during peak demand months.
💡 If Vermont follows these proven policies, we can fix our housing crisis—just like other states have.
5. 🚀 Take Action: How Vermonters Can Push for Real Change
📢 1. Demand Zoning Reform to Allow More Housing Types
- Vermont can't solve the crisis if we don't allow more homes to be built.
📝 2. Support Permitting Reform to Speed Up Construction
- The state should cut red tape so housing projects can break ground faster.
📬 3. Encourage Towns to Allow More ADUs
- Small backyard rentals can help solve the housing shortage.
📣 4. Share This Article & Start the Conversation
- Vermont leaders need to hear from residents who want real solutions.
6. 🖊 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.
🚨 Vermont doesn't need to continue struggling with housing—other states have already shown us what works. We can build more homes, lower prices, and strengthen our economy if we follow proven solutions.
Next Week: Why Housing Policy Needs to Be a Bigger Issue in Vermont Elections.
