A Hard Look at Why Housing Costs Keep Rising—And Why We're Our Own Worst Enemy
The Contradiction No One Wants to Talk About
Vermonters are fed up with the cost of housing. Home prices are at all-time highs, rents are crushing, and younger Vermonters are packing up and leaving because they can't afford to stay.
Ask about anyone, and they'll tell you the same thing: We need more affordable housing.
Then, something strange happens.
The moment a new housing project is proposed—whether it's apartments in Burlington, workforce housing in Montpelier, or a duplex in Stowe—the opposition floods in. Homeowners show up at town meetings, armed with concerns about "preserving Vermont's character" and "protecting property values." Permitting boards stall projects with endless reviews, and zoning restrictions quietly kill the rest.
The result? We block the very solutions we say we want.
This is the Vermont Paradox: We demand affordability but fight every effort to make it happen.
So what's really going on? And, more importantly—how do we break the cycle?
The Reality: Vermont's Housing Market is Rigged for Scarcity
Housing isn't expensive here by accident. Vermont's zoning laws, permitting process, and land-use policies artificially limit the housing supply.
1. Local Zoning Keeps Housing Scarce & Expensive
- Single-family zoning dominates most towns. That means builders can't put up duplexes, triplexes, or apartments—even in places where demand is highest.
- Minimum lot sizes are huge. A home in rural Vermont often requires an acre or more per lot. That's great if you want open land—but terrible if you need more housing.
- Affordable housing gets blocked. Even when developers propose "workforce housing," the response is usually: Not in my backyard.
📍 Real-World Example: Stowe's Workforce Housing Problem
- Stowe's economy depends on service workers, but most can't afford to live there.
- In 2023, a 34-unit housing project for local workers was proposed—but wealthy homeowners pushed back, citing "preserving the town's character." The project stalled.
- Meanwhile, resorts, restaurants, and shops struggle to find employees.
2. Act 250 & The Permitting Nightmare
- Vermont's Act 250 was created in the 1970s to protect the environment and prevent reckless development. It is a good idea in theory, but in practice, it makes housing almost impossible to build.
- Developers spend years in court and hundreds of thousands of dollars on legal fees to get approval. Many give up before breaking ground.
- Small builders—the ones who might actually build affordable homes—get squeezed out entirely.
📍 Real-World Example: Barre & Montpelier’s Post-Flood Rebuilding Struggles
- After the devastating 2023 floods, many homes and rental properties were damaged.
- Instead of fast-tracking new affordable housing, local zoning laws and Act 250 have slowed down reconstruction—leaving displaced residents stuck in limbo.
3. Vermonters Say They Hate Gentrification—But Also Want Property Values to Rise
- The same homeowners who complain about rising home prices also don't want more housing built near them.
- Why? Because more housing means more competition, and competition keeps prices from rising as fast.
- The contradiction: We want Vermont to stay affordable—but we also want our home values to keep climbing.
📍 Real-World Example: Middlebury's $400,000 "Starter Homes"
- A young couple looking to buy in Middlebury recently told Vermont Public that every "starter home" they found was over $400,000—a price completely out of reach for most first-time buyers.
- Their solution? They're leaving Vermont and buying in New Hampshire, where the market is more reasonable.
The Consequences: Who Really Pays the Price?
While Vermont homeowners benefit from rising property values, the next generation of Vermonters is getting priced out of their own state.
📌 Young Vermonters Can't Afford to Stay.
- The median home price in Vermont is now over $400,000—a 50% increase in just five years.
- If you're making $50,000 a year, a mortgage on a house like that isn't even an option.
- No housing = young families leave. Period.
📌 Local Businesses Can't Find Workers.
- Vermont's labor shortage isn't just about wages—it's about housing. If workers can't afford to live here, they won't stay.
- Small businesses are already struggling. Without housing, expect even more "Help Wanted" signs.
📌 Towns Are Becoming Wealthy Retirement Communities.
- Without workforce housing, Vermont towns are filling up with second-home owners, retirees, and remote workers from Boston and NYC.
- If we keep blocking new housing, Vermont won't be Vermont—it'll be a boutique destination for the rich.
How We Fix It: A Vermont Solution for a Vermont Problem
This isn't about turning Vermont into a city. It's about fixing the rules that make housing unaffordable while preserving what makes Vermont special.
✅ Legalize More Housing Types
- End single-family zoning in high-demand areas. Allow duplexes, triplexes, and small apartments in village centers.
- Reduce minimum lot sizes in rural towns to allow smaller, more affordable homes.
✅ Reform Act 250 for Smart Growth
- Streamline permitting for housing projects under 20 units so small builders can compete.
- Create fast-track approvals for town-approved workforce housing.
✅ Build Where We Already Have Infrastructure
- Stop pushing sprawl—build in and around existing town centers where water, sewer, and roads already exist.
✅ Incentivize Housing for Vermonters, Not Investors
- Tax second homes at a higher rate and use the revenue to fund workforce housing.
- Offer property tax breaks to local homebuyers who commit to staying in Vermont.
🚀 Take Action: How You Can Help Fix Vermont's Housing Crisis
Getting frustrated is easy—but real change starts with local action. Here's what you can do right now:
📢 1. Speak Up at Town Meetings
- Housing projects get blocked at the local level. Attend your town's next zoning or planning meeting and speak in support of smart, well-planned housing projects.
📝 2. Contact Your State Representatives
- Vermont lawmakers need to hear from regular Vermonters—not just wealthy homeowners—about the need for zoning reform.
📬 3. Support Pro-Housing Organizations
- Groups like Capstone Community Action, Vermont Housing Finance Agency (VHFA), and Champlain Housing Trust are working to build more affordable housing.
🏠 4. Push for Smarter Zoning in Your Town
- Find out your town's zoning rules and push for updates that allow more housing.
📣 5. Share This Article
- The more Vermonters talk about this, the harder it becomes for local officials to ignore.
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. As a longtime advocate for smart growth and sustainable housing solutions, Tony brings firsthand experience navigating Vermont's real estate market—helping buyers, sellers, and investors make informed decisions in an increasingly challenging landscape.
🏡 Want to continue the conversation? Reach Tony at tonywalton@nelandmark.com.
🚨 The Vermont we love won't survive if no one can afford to live here. 🚨
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