By Tony Walton

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.

By Tony Walton

How Vermont's Housing Crisis Could Shape the State's Future—and What We Can Do About It

1. The Tipping Point—Is Vermont Becoming a Place Only the Wealthy Can Afford?

Vermont is at a crossroads. If housing prices keep climbing and policies don’t change, Vermont won’t be a home—it’ll be a luxury destination.

The contradiction:

• Vermont talks about affordability, but housing policy favors high-end development.
• Politicians debate solutions, but working-class Vermonters are already being priced out.
• Labor shortages hurt businesses, but zoning laws and NIMBY opposition kill every proposed workforce housing project.

The reality check:

• Vermont's median home price has jumped over 50% in just five years.
• Out-of-state buyers, investors, and short-term rentals are reducing supply.
• Zoning laws and construction costs make building mid-priced homes nearly impossible.

💡 If we don't act now, Vermont's most desirable towns will be filled with empty homes in the off-season—while the people who keep the state running won't be able to live here.

2. The Warning Signs: Vermont's Affordability Crisis Is Accelerating

  1. Vermont Home Prices Are Rising Too Fast for Locals to Keep Up

• The median home price in Vermont is now over $400,000—pricing out entire generations.
• The state isn't building enough homes at a mid-range price, forcing middle-income families into a brutal rental market.

  Example: Middlebury's "Starter Homes" Now Cost $450K+

• A young teacher and a nurse—both earning above the Vermont median income—searched for a home in Middlebury.
• Every "starter home" they found was over $450,000, far exceeding their budget.
• They finally gave up and moved to New Hampshire, where similar homes cost $100K less.

  The Reality:

• Who's building mid-priced homes for middle-class families? Almost no one.
• Builders are either focused on luxury homes (for profit) or subsidized housing (for tax credits), leaving the middle class with nothing.

  Smart Fix:

• Expand Vermont's "Missing Middle" Home Program, which incentivizes builders to construct modest, well-designed homes.
• Reduce regulatory and permitting barriers for small and mid-sized developers to enter the market.

  2. Out-of-State Buyers & Investors Are Driving Up Prices

• Vermont already taxes second homes at a higher rate, but this hasn't slowed investor interest.
• With a low housing supply, cash-rich Boston and New York buyers quickly outbid locals.

  Example: Stowe's Housing Takeover by Second-Home Buyers

• Over 25% of homes in Stowe are now second homes—meaning they sit empty for most of the year.
• The median home price in Stowe is now over $750,000, making it nearly impossible for local workers to live there.
• Employers in town can't find workers because the workforce can't afford to stay.

  The Reality:

• Vermont's existing second-home tax isn't enough to curb speculation.
• Investors and second-home buyers still see Vermont real estate as a safe bet.

  Smart Fix:

• Increase taxes on vacant second homes that sit unused for most of the year.
• Require short-term rental owners to offer long-term rentals for a portion of the year before listing properties on Airbnb.

  3. Short-Term Rentals Are Crushing Vermont's Housing Market

• Vermont has thousands of homes converted into Airbnbs, further reducing the long-term rental supply.
• Right now, Vermont has no consistent, statewide Airbnb regulations—allowing investors to buy up homes purely for short-term profits.

  Example: Killington's Airbnb Takeover

• Killington is one of Vermont's top tourist destinations, but the explosion of short-term rentals has made long-term rentals almost impossible to find.
• Seasonal workers and locals are forced to live in motels or commute long distances because Airbnb dominate the market.

  The Reality:

• Some Vermont towns have implemented Airbnb restrictions, but many haven't addressed the scale of the problem.
• Vermont needs a statewide policy instead of letting each town make its own rules.

  Smart Fix:

• Define "long-term rental" as at least six months per year—not just 60 or 90 days.
• Limit Airbnb licenses per town to prevent full neighborhoods from turning into short-term rentals.

3. What Vermont Could Look Like in 2035 If We Don't Act Now

  Without intervention, Vermont will become:

  A retirement destination—but too expensive for Vermonters to retire here.

  A second-home state—with empty houses in the off-season.

  An employer's nightmare—where jobs go unfilled because workers can't afford to live nearby.   

 But if we invest in the right solutions, Vermont can be:

  A place where locals can afford to live, work, and raise families.

  A state that balances growth with smart planning.

  A destination that thrives year-round—not just for second-home owners.

4.  Take Action: How We Keep Vermont Livable for Future Generations

 1. Support "Missing Middle" Housing Incentives

• Vermont needs duplexes, triplexes, and townhouses built for working families.

 2. Demand Stronger Airbnb & Second-Home Regulations

• Vermont's current tax policies aren't slowing speculation. We need caps on short-term rentals and stricter second-home rules.

 3. Push for More Mid-Range Housing Construction

• The state should incentivize builders to focus on $250K-$400K homes, not just luxury builds or subsidized housing.

 4. Share This Article & Start the Conversation

• If Vermont's leaders don't hear from residents, they'll keep catering to wealthy outsiders instead of working Vermonters.

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.

  Vermont's future isn't set in stone. If we fail to fix our housing and infrastructure policies, Vermont will become a playground for the rich. If we act now, we can keep Vermont livable for everyone.

Next Week: The Role of Private Developers in Solving Vermont's Housing Crisis—Friend or Foe?

 By Tony Walton

More Homes, Smarter Growth: Why Vermont Needs to Build Infrastructure Before Expanding Housing

1. Vermont Has Plenty of Land—So Why Aren't We Using It Smartly?

📌 Hook:

Vermont, with its vast expanse of over 4.5 million acres of land, holds immense potential for smart development.

📌 The contradiction:

• There's plenty of open space, but restrictive zoning and a lack of infrastructure make development nearly impossible.
• Meanwhile, we keep cramming new housing into congested areas while rural towns with room to grow get ignored.
• Opportunity Zones (OZs) could be perfect for housing expansion, but Vermont isn't investing in the roads, internet, and transit needed to make them work.

📌 The reality check:

If we fix infrastructure first, we could develop innovative, well-connected rural housing—keeping Vermont affordable without sacrificing its charm.

So, what needs to happen before we start building?

2. Vermont's Rural Development Problem—And How to Fix It

Vermont has plenty of space for housing, but those developments will fail without basic infrastructure.

📍 1. Rural Housing Needs High-Speed Internet Before Anything Else

• You can't build modern housing if residents can't work from home, stream, or run a business.
• Many Vermont towns still lack fiber-optic broadband, making them unattractive for development.

📍 Example: The Southern Vermont Internet Gap

• Towns like Readsboro and Searsburg have land available for housing, but no one will move there without broadband.
• Local schools and businesses struggle because remote work and e-commerce aren't possible.

💡 The Fix:

✅ Fast-track broadband expansion in Opportunity Zones (OZs)

✅ Use state grants to fund rural fiber-optic projects, prioritizing areas where housing is planned.

📍 2. Opportunity Zones Should Be Prepped With Roads, Water, and Sewer—Before Housing is Built

• Many Opportunity Zones are rural, meaning basic infrastructure needs to be in place first.
• Right now, Vermont expects developers to build infrastructure themselves, making projects too expensive to be viable.

📍 Example: The Unused OZs in the Northeast Kingdom

• Vermont designated OZs in the Northeast Kingdom to attract development, but it didn't invest in roads, water, or sewer systems first.
• Developers aren't building there because infrastructure costs are too high.

💡 The Fix:

✅ Pre-build roads, water, and sewer systems in key OZs so developers can start construction faster.

✅ Offer tax incentives to developers in pre-zoned, infrastructure-ready rural areas.

📍 3. Vermont Needs More Public Transit to Make Rural Housing Feasible

• If we spread housing into rural areas, we need better ways for people to get to jobs and services.
• Right now, Vermont has no reliable transit options for most rural workers.

📍 Example: The Public Transit Void in Washington & Lamoille Counties

• Housing could expand outside larger Vermont urban centers, but there's no reliable bus or rail service for commuters.
• People must drive everywhere, making housing only feasible for those who can afford a car.

💡 The Fix:

✅ Expand bus routes and shuttle services between rural OZs and economic hubs.

✅ Invest in rural park-and-ride hubs connected to transit options.

3. Why Infrastructure-First Development in OZs Is the Smartest Path Forward

📌 Vermont is sitting on unused land that could solve the housing crisis.

📌 But if we don't build infrastructure first, these projects will fail.

Here's how Vermont should develop Opportunity Zones the right way:

✅ 1. Invest in Roads, Internet, and Utilities Before Approving Housing

• If a town isn't connected, it shouldn't be a priority for new housing—yet.
• State funding should go toward prepping infrastructure first so that when homes are built, they're already connected to the economy.

✅ 2. Fast-Track Permits for Infrastructure-Ready Developments

• If a developer wants to build in an OZ with existing infrastructure, their project should be approved faster than urban projects.
• This incentivizes growth in areas that are already prepared for expansion.

✅ 3. Use Tax Breaks to Encourage Smart Growth in Rural Areas

• Offer property tax incentives for Vermonters who buy in Opportunity Zones—helping locals, not just investors.
• Encourage mixed-use zoning so small businesses can grow alongside housing.

✅ 4. Strengthen the Link Between Housing & Local Business Investment

• Rural towns should attract housing AND economic development—not just one or the other.
• Every OZ project should include housing, retail, and workspace options.

💡 The Reality:

• Focusing on infrastructure-first development in OZs will create more affordable housing, protect Vermont's landscape, and fuel smart rural growth.

4. 🚀 Take Action: How You Can Push for Infrastructure-First Development in Vermont

📢 1. Demand More Infrastructure Investment from State Leaders

• Tell your representatives that Vermont needs to develop OZs properly—starting with roads, internet, and transit.

📝 2. Support OZ Housing That Includes Infrastructure Upgrades

• New rural developments should be required to include key infrastructure improvements.

📬 3. Push for Broadband Expansion in Growth Zones

• More internet = more business, more jobs, and more housing.

📣 4. Share This Article & Start the Conversation

• If more Vermonters understood the importance of infrastructure-first development, we'd get better housing faster.

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.

🚨 Vermont's housing crisis isn't about a lack of land—it's about a lack of infrastructure. If we fix the foundation first, we can develop housing where it makes sense—without ruining Vermont's character.

Next Week: Will Vermont Become a Playground for the Rich? The Next 10 Years Will Decide.