By Tony Walton

We've exposed Vermont's contradictions on housing and broken down the zoning problem. Now, it's time to tackle one of the most emotionally charged topics in real estate—Gentrification.

Let's cut through the noise and reframe the conversation: Gentrification isn't just about outsiders moving in—it's also about Vermont's failure to build enough housing for its own people.

📝 The Truth About Gentrification in Vermont

1.The Two Sides of Gentrification

 

Gentrification is one of the most divisive words in housing. Some see it as revitalization, others as displacement. But here's the truth: it cuts both ways.

📌 The contradiction:

Vermonters complain about rising costs and losing local character, but they also block the very housing projects that would slow Gentrification.

📌 The reality check:

  • Housing shortages fuel gentrification. If we built enough homes, wealthier buyers wouldn't have to outbid locals for the few available properties.
  • Local cashing out is part of the process. Many longtime Vermonters are selling to out-of-state buyers because they can get top dollar.
  • Gentrification isn't just a Burlington or Stowe problem anymore. It's happening in Barre, Montpelier, and even rural towns—because there's nowhere else to go.

So what's really happening—and what can we do about it?

2. Gentrification in Vermont: What's Driving It?

📍 Wealthy Buyers Are Flocking to Vermont—Because We Made It Exclusive

  • Out-of-state buyers from Boston, New York, and California consider Vermont a refuge from high prices elsewhere.
  • With a limited housing supply, these wealthier buyers outbid local Vermonters—driving prices higher.
  • These aren't just second-home buyers anymore—remote workers, investors, and high-income transplants.

📍 Example: The Stowe Effect

  • Stowe home prices have skyrocketed 50%+ in the last five years.
  • Local workers cannot afford homes—and many commute long distances to work there.
  • The town blocked affordable housing projects, ensuring that Gentrification continues.

Locals Are Cashing Out—And That's Part of the Story

  • Longtime Vermonters are selling their homes for record prices and moving to cheaper states.
  • In towns like Middlebury, Montpelier, and Barre, older homeowners are taking advantage of high demand—and who can blame them?
  • The problem is that no housing is being built to replace what's being sold, meaning younger Vermonters are stuck renting or leaving.

📍 Example: The Barre Exodus

  • After the 2023 floods, many Barre homeowners sold their properties instead of rebuilding.
  • Investors snapped up cheap homes, renovated them, and resold them at a premium—pricing out locals.
  • Without new construction, every home that gets flipped just makes the problem worse.

 

Short-Term Rentals & Airbnb Are Squeezing the Market

  • Vermont now has thousands of homes converted into short-term rentals.
  • In places like Burlington, Killington, and Woodstock, investors are turning family homes into Airbnbs, removing them from the housing stock.
  • The result? Fewer homes for locals, higher prices, and deeper Gentrification.

📍 Example: Woodstock's Airbnb Takeover

  • Even with short-term regulation, nearly 1 in 5 homes in Woodstock are now short-term rentals.
  • Year-round rentals are nearly impossible to find, and prices have doubled since 2020.
  • If a town doesn't control short-term rentals, Gentrification happens even faster.

3. How Do We Slow Down Gentrification? (Hint: Build More Housing!)

📌 Gentrification is a symptom of scarcity. If Vermont had enough housing, wealthier buyers wouldn't have to compete with locals for the same limited supply.

Blocking new housing only accelerates Gentrification. Wealthy buyers bid up the few existing homes when a town refuses to allow apartments, duplexes, and smaller homes.

Here's what actually works:

✅ Legalize More Housing in High-Demand Areas

  • Allow multi-family housing in town centers to increase supply.
  • Reduce minimum lot sizes so smaller, more affordable homes can be built.

✅ Limit Short-Term Rentals in Housing-Strained Towns

  • Require local ownership for Airbnb rentals so investors don't dominate the market.
  • Cap the percentage of homes that can be used as short-term rentals in high-demand areas.

✅ Encourage Homeownership for Vermonters

  • Tax second homes at a higher rate to discourage speculation.
  • Offer down payment assistance for local first-time buyers.

✅ Invest in Workforce Housing—Before It's Too Late

  • Fast-track approvals for workforce housing developments in towns like Stowe, Killington, and Montpelier.
  • Expand state incentives for builders who create affordable homes.

4. 🚀 Take Action: How You Can Help Slow Gentrification in Vermont

📢 1. Speak Up for Housing at Town Meetings

  • Most Gentrification is made worse by restrictive zoning laws. If you don't want your town to become a second-home market, support policies that allow more housing.

📝 2. Push for Local Short-Term Rental Rules

  • Towns like Burlington, Stowe, and Woodstock need stronger Airbnb regulations. Push for limits on investor-owned short-term rentals.

📬 3. Support First-Time Homebuyer Programs

  • Vermont needs more programs that help locals buy homes before investors scoop them up.

📣 4. Share This Article & Start the Conversation

  • Gentrification isn't inevitable—but ignoring the problem will make it worse. Share this with someone who cares about Vermont's future.

🖊 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.

🚨 "If we don't build more housing, Gentrification will only accelerate—turning Vermont into a playground exclusively for the rich."

Next Week: The State's "Affordable Housing" Plan Isn't Working—Here's What Would.