Vermont’s housing crisis reflects a complex interplay of modest population growth, regional disparities, and an increasingly restrictive regulatory environment. At the core of the issue is the transformation of zoning laws from practical safety measures into instruments of control, leading to a shortage of affordable housing, escalating costs, and a growing dependence on government intervention.
Population Shifts: A State Divided
Over the past three decades, Vermont’s population has grown modestly, increasing from approximately 580,000 in the mid-1990s to around 650,000 today.
This growth has been unevenly distributed, with Chittenden County—home to Burlington and its suburbs—experiencing significant increases, while smaller cities like Rutland, Bennington, and Barre have faced declines.
Rutland, once Vermont’s second-largest city, has seen a notable population decrease as younger residents depart in search of better employment opportunities. In contrast, Burlington has emerged as an economic hub, attracting individuals from across the state and beyond. This disparity has led to housing shortages and soaring rents in Chittenden County, juxtaposed with declining demand and vacant homes in economically struggling towns.
Despite population decreases in areas like Rutland, the existing housing stock remains. However, perceptions of what constitutes “acceptable” housing have shifted. Older homes, often deemed inefficient or outdated, remain unoccupied, while new housing developments are scarce, creating a paradoxical shortage even in regions with declining populations.
Zoning Laws: From Safety to Strangulation
The origins of zoning laws can be traced back to events like Boston’s Great Fire of 1872, which highlighted the need for regulations to ensure public safety.
Over time, these laws have evolved into tools for economic and social control, dictating development patterns in ways that often hinder growth and infringe upon property rights.
In Burlington, zoning regulations emphasize preserving neighborhood character and sustainability. While these objectives are commendable, the resulting restrictions—such as height limits, density caps, and complex permitting processes—pose significant challenges for developers aiming to construct affordable housing. Additionally, mandates for energy efficiency and design standards, though well-intentioned, further escalate construction costs.
Chittenden County’s zoning and planning failures are particularly evident. The region has permitted substantial business growth, attracting companies and jobs, yet has not facilitated corresponding housing development. This imbalance has led to a thriving job market without adequate housing for the workforce, resulting in escalating rents, extended commutes, and an expanding housing gap.
Economic Realities: No Market for Development
Developers in Vermont encounter formidable economic challenges. High construction costs, combined with stringent regulations, make it difficult to achieve profitability, especially for affordable housing projects. The state’s relatively small population and limited demand for luxury housing further constrain developers’ ability to recoup investments.
Vermont’s high taxes contribute to the financial burden, inflating costs for both construction and living. Property taxes, income taxes, and development fees create an environment where even modest housing projects face significant obstacles.
Consequently, the market remains stagnant, with developers either avoiding Vermont or focusing on high-end housing, leaving middle- and low-income residents underserved.
Government Dependence vs. Personal Responsibility
In response to these challenges, many Vermonters turn to the government for solutions, advocating for subsidies, affordable housing mandates, and statewide assistance. However, these measures often divert resources to urban centers like Burlington, neglecting smaller towns such as Rutland.
Simultaneously, there is a noticeable lack of personal initiative in addressing housing issues. Few individuals or communities undertake building or renovating homes independently. While such endeavors can be daunting, relying solely on external entities—be it developers or the government—to resolve the problem perpetuates the crisis.
How to Fix Vermont’s Housing Crisis
Addressing Vermont’s housing challenges requires a multifaceted approach that balances government intervention with free-market principles and personal responsibility:
- Reform Zoning Laws: Return to the original intent of zoning—ensuring safety—while eliminating unnecessary restrictions. Allowing higher-density housing, mixed-use developments, and accessory dwelling units (ADUs) can create opportunities for growth.
- Encourage Development: Streamline permitting processes and offer tax incentives for affordable housing projects to attract developers. Reducing impact fees and relaxing overly stringent energy standards can further lower costs.
- Invest in Rural Revitalization: Allocate resources to smaller towns like Rutland, Bennington, and Barre to balance growth across the state. Infrastructure investments, such as broadband expansion and public transportation, can enhance the viability of these areas for businesses and residents.
- Promote Personal Responsibility: Implement programs that educate and empower individuals to build or renovate homes, alleviating the housing shortage and fostering community ownership.
- Reevaluate Government’s Role: While subsidies and state assistance have their place, they should complement, not replace, market-driven solutions. Policymakers must ensure equitable resource distribution and avoid regulations that inadvertently hinder growth.
Final Thoughts
Vermont’s housing crisis stems from decades of misaligned priorities, where zoning laws and regulations have created obstacles rather than opportunities. The failure to balance business growth with housing development in Chittenden County exemplifies how inadequate planning can exacerbate inequality and impede progress. By refocusing on safety, embracing the free market, and empowering individuals and communities, Vermont can address its housing needs without further burdening taxpayers or perpetuating overregulation. Restoring balance to the system is essential to ensure a future of opportunity rather than scarcity.
Dave Soulia | FYIVT
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