Vermont’s Housing Challenge: Affordability, Supply and the Path Forward with Commissioner Alex Farrell
Monday, September 21, 2026, on Common Sense Radio with Bill Sayre, weekdays, 11 o’clock till Noon.
Alex Farrell, Vermont Commissioner of Housing and Community Development, joins Bill to continue their discussion of the Vermont housing market, factors that affect supply and demand, the affect on the affordability and availability of housing, and the implications for achieving other public policy goals in Vermont.
Potential Questions and Issues
Let’s start by examining the connection between Vermont demographics and the housing market. Some have said that if our population has declined, likely for the past two or three years, why do we require 5,000 additional housing units per year? What is the vacancy rate for Vermont’s rental market and owner occupied market? What proportion of Vermont’s housing units are owner occupied? 75 percent? Has the number of households increased in the last few years?
How do we measure housing affordability — both for homeowners and for renters? What percentage of Vermont households are homeowners, and what percentage are renters? What do we know about median home price, and median rent in Vermont? And the trends in median home prices, rents, and incomes for families and households? For example, trends over the past 5 years? What percentage of income is considered the maximum, and still be affordable? How is income measured — all household income, for example? Are other income supplements included — such as, subsidies for food, transportation, energy, health care, family support, as well as housing?
What is the importance of housing affordability as part of the general policy to improve affordability for Vermont families and individuals? How does housing affordability affect the willingness and ability of our Vermont entrepreneurs and other businesses to grow, invest, and hire? And by implication, Vermont’s tax base — property, income, sales — for funding necessary government spending, including assisting those who vulnerable, either temporarily or long term.
What do we know about median household size in Vermont, reported to be among the lowest of any State in the nation? What is effect of low fertility rate in Vermont, also, about the lowest of any State in the nation? What are the implications of this small household size for housing demand and supply? What factors affect household size? What are vacancy rates in Vermont? What are differences in the housing market in various parts of the State — for example, rural verses urban?
What is the effect of property taxes on housing affordability — this year, and in the last 5 years? How do our property tax burdens compare with that in other States of the nation? As measured both in dollars, and as a proportion of personal income.
What are the regulatory effect on housing affordability. How will removing the Road Rule and Tier 3 Land Designation, help improve housing affordability? Some estimates of the cost of regulation, are as high as $174,000 per unit. Are you familiar with this one, and why is it so high? What do you think is a reasonable estimate of the cost of regulation? How do the mandates of the Global Warming Solutions Act, Renewable Energy Standards, Energy Codes, the Clean Heat Standard, and other Climate Legislation affect Housing affordability?
What is the connection between transportation cost and housing affordability? That is, the tradeoff between transportation costs and housing cost (both for home prices and for rents). How is this principle illustrated in the rents and home prices in Chittenden County, as compared with more rural locations in Vermont? As higher hydrocarbon fuel price raise the cost of commuting, what will be the effect on home prices close to job opportunities?
How do high hydrocarbon costs disproportionately affect housing affordability in rural areas? And the affect on rural communities? Do these higher prices foreshadow how a Carbon Tax, direct or indirect, would affect housing affordability?
What should we know about the role of Federal Section 8 Housing Subsidies, and their role in housing affordability in Vermont?
What is the effect of energy costs on affordability for families and businesses in Vermont? How do our energy costs compare with those in other States?
How does local zoning affect housing affordability? And statewide zoning, such as Tier 3 zoning and the Road rule. What was the effect on the rural land owners? And on those who want to live in rural areas — including those of modest means who are service workers for the travel and tourism industry? With tier 3 statewide zoning, do we run the risk of creating a rural theme park, in which the wealthy can afford to navigate the regulatory burdens of Act 250, but middle class families can not?
How has the Community Housing Infrastructure Program (CHIP) affected the rural housing market? What are the similarities and differences between CHIP and the Tax Increment Financing (TIF) program?
Are CHIP and TIF, in essence, work-arounds following the creation of a statewide property tax, also known as Act 60, which reduced the incentive of local communities to develop. Is the Amazon proposal for a new concentration center, an example?
Is there a conflict between the goal of concentrating future housing development in existing downtowns (with the associated infrastructure) and the vulnerability of many downtowns to flooding? What is the role of public safety in where people want to live and shop? Is housing affordability both a cause and effect of migration patterns among States? With changes underway in internet technology and worldwide instant communication, is there an opportunity for Vermont to be more attractive as a place to where entrepreneurs want to migrate to start or grow their companies, while enjoying the Vermont environment – including the working landscape — and quality of life. What other government policies can help make Vermont more affordable as a place to live, without making Vermont a more difficult place to earn a living? How does building new housing in the mid-price range, or even the upper-price range, help create affordable housing for lower-income families and individuals?
What is the difference between housing affordability and affordable housing? Isn’t the most affordable housing, not newly constructed housing, but existing homes. Some of which may require some repairs and fixing. What is the traditional way that young households get started — making their own repairs, building sweat equity. But getting started on the escalator of building home equity? Another part of what makes this escalator work so well, historically, is that the rate of increase in household income is much greater for young households is much greater than for older households — what can we learn from this? As a general principle, how does rising income affect housing affordability? Does this help us understand why economic growth is important to affordability? What is the connection, both as cause and effect, between the availability of skilled trade labor, and the cost of housing?
