Vermont, known for its stunning landscapes and tight-knit communities, is becoming an increasingly difficult place for older adults to afford. A recent report from the Urban Institute highlights a national crisis that is hitting Vermont’s senior population especially hard: a housing market that is both unaffordable and increasingly inaccessible.

The Senior Housing Squeeze in Vermont

Vermont’s population is aging faster than the national average. Nearly 20% of the state’s residents are over 65, and this number is projected to rise significantly in the coming years. The problem? The state’s housing market isn’t keeping up. Fixed incomes and rising housing costs are a dangerous combination.

According to the report, nationally, the number of severely cost-burdened senior households—those spending more than half their income on housing—has doubled in the last 20 years, growing from 5.2 million to nearly 11.7 million. Vermont mirrors this trend, and the state's rural nature makes matters even worse.

What’s Driving the Crisis?

1. Skyrocketing Property Taxes

Vermont already has one of the highest property tax rates in the country. With local budgets increasingly relying on property taxes, many seniors who own their homes are finding it harder to keep up with payments.

2. Limited Housing Supply

Vermont’s tight housing inventory isn’t just a problem for first-time homebuyers—it’s squeezing seniors out, too. Many older residents want to downsize but can’t find smaller, affordable homes in their communities.

3. Rising Maintenance & Utility Costs

Heating bills in Vermont are no joke. With cold winters and rising fuel prices, many older homeowners are struggling to afford necessary home upkeep, leading to deteriorating housing conditions.

4. Lack of Accessible Housing

A large percentage of Vermont’s housing stock was built decades ago, meaning accessibility features like single-floor living, widened doorways, and no-step entries are rare. Retrofitting a home for aging in place can be prohibitively expensive.

5. Senior Rental Market Challenges

For seniors who don’t own, the rental market is even worse. Vermont has one of the lowest rental vacancy rates in the country, driving up costs and making affordable rental options scarce.

What Can Be Done?

Vermont needs targeted solutions to help its older population stay in their communities. The Urban Institute suggests several nationwide strategies that Vermont could apply:

• Property Tax Deferral Programs – Expanding property tax relief programs for seniors could help long-time residents stay in their homes.
• More Subsidized Housing – Vermont already has some affordable housing initiatives, but demand far exceeds supply. Increased state and federal funding could help.
• Medicaid Housing Assistance – Some states use Medicaid waivers to help low-income seniors cover housing costs. Vermont could expand this effort.
• Senior-Friendly Development Incentives – Developers need encouragement to build accessible, age-friendly housing, whether through tax credits or streamlined permitting.

The Bottom Line

Vermont prides itself on community and quality of life, but if the state doesn’t address these housing challenges, many seniors may be forced to leave or live in substandard conditions. Tony Walton, a Vermont real estate expert, sees this firsthand.

“Seniors want to stay in the communities they’ve lived in for decades, but the market isn’t working for them. We need real solutions, fast.”

If you’re a Vermont homeowner looking to downsize or plan for the future, Tony Walton and his team at NELandmark.com can help you navigate this challenging market. Call 802-253-4711 for expert advice.