By Tony Walton

Vermont's Housing Shortage: We Can’t Solve It Without Developers

Vermont is in the midst of a housing crisis, and solving it requires more than demand—it demands partnership with the very people who build homes. Developers aren’t the problem—they’re a critical part of the solution.

  • Permitting and zoning delays increase costs and prevent progress.
  • Construction costs are outpacing what middle-income Vermonters can afford.
  • Policy contradictions are stalling the kind of growth Vermont urgently needs.

What’s Holding Developers Back from Building More Affordable Homes?

1. Rising Costs Make Affordable Housing Unviable

Between labor, materials, and land, the average home now costs more to build than many Vermonters can afford to buy.

Example: In Central Vermont, a proposed 20-home project was scrapped when the $350K per unit cost couldn’t match the $275K affordable target—creating a $75K loss per home.

Smart Solutions:

  • Expand Vermont’s “Missing Middle” program to support homes priced $250K–$400K.
  • Offer tax incentives and fee waivers for workforce housing developers.

2. Permitting & Zoning Laws Create Development Gridlock

Slow permitting timelines and restrictive zoning prevent efficient, community-focused housing solutions.

Example: In Montpelier, post-flood rebuilding was delayed over a year due to zoning reviews—stalling urgently needed homes.

Smart Solutions:

  • Fast-track permits for workforce housing in Smart Growth Zones.
  • Revise outdated zoning to support duplexes, townhomes, and mixed-use housing.

3. Developers Want to Build for Vermonters—If the State Supports It

Most local builders are eager to contribute to community stability and economic health. When they receive the right support, results follow.

Example: In Middlebury, town collaboration led to 50 new affordable homes on an underutilized site—made possible through zoning flexibility and tax incentives.

Smart Solutions:

  • Promote public-private partnerships aligned with local housing goals.
  • Incentivize projects that prioritize Vermont residents over investors.

Path Forward: A Pro-Housing Strategy That Supports Everyone

We must remove barriers for builders who want to create smart, sustainable growth in Vermont communities.

  1. Fast-track approvals for well-planned workforce housing projects.
  2. Incentivize starter homes and duplexes with tax relief and grants.
  3. Modernize zoning laws to allow smart growth in town centers.
  4. Create public-private partnerships that support affordable development.

How You Can Help Fix Vermont's Housing Future

  • Demand streamlined approvals for much-needed housing projects.
  • Support zoning reform that encourages diverse, affordable options.
  • Advocate for expanded "Missing Middle" programs to reduce cost barriers.
  • Share this message and help shape the conversation with town officials and legislators.

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