Vermont is facing a significant housing crisis, as highlighted in the recently released State of Working Vermont report. The report reveals that housing costs are rising at an alarming rate, making it increasingly difficult for families to afford rent and homeownership. In 2023, over 50% of households earning under $75,000 spent more than 30% of their income on housing, with nearly two-thirds of renting households classified as cost-burdened.

The report indicates that the median rent and home prices in Vermont have surged, with home prices climbing from $260,000 in 2021 to $315,000 in 2023. Coupled with rising mortgage interest rates, the cost of entering the housing market has become prohibitively expensive, adding over $11,000 to the first-year expenses for new homeowners compared to two years prior.

The lack of affordable housing units is a critical issue, with a reported shortfall of approximately 10,000 units needed to meet demand from 2019 to 2023. Projections suggest that Vermont will need between 15,000 to 35,000 new housing units in the next five years to address both existing and new population demands.

The state budget for fiscal year 2025 allocated only about 2% to housing, approximately $170 million, which advocates argue is insufficient given the scale of the crisis. Additionally, the Burlington Housing Authority has warned that federal funding for rental assistance may not cover current needs, potentially exacerbating homelessness in the state.

To tackle these challenges, state officials are urged to adopt a more comprehensive approach to housing policy, ensuring that all Vermonters have access to affordable housing. This includes addressing historical inequities that have hindered access to homeownership for communities of color and providing targeted support for vulnerable populations.

As Vermont grapples with these pressing housing issues, the need for decisive action and increased investment in affordable housing solutions has never been more critical.