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Editorial: Focus on housing

When it comes to housing in Vermont, there are two things everyone agrees on: The costs are climbing out of reach for many average Vermonters and there is no easy solution.

More than 300 people met last week in Burlington at the 2004 Vermont Statewide Housing Conference to look for answers. That on-going focus on this entrenched problem must be maintained.

In addition, lawmakers must stay committed to the issue financially, focusing on programs like the Housing and Conservation Board that are proven; the federal government must continue to provide grants and assistance for housing projects; local communities must ease permitting restrictions where appropriate; and all Vermonters must recognize that additional housing is necessary, even in their own back yards.

The problem is not new, but it is growing. As outlined in the 2004 "Between a Rock and Hard Place" report (528kb; PDF) by the Vermont Housing Council, the median price of a home increased more than 50 percent from 1996 through 2003, hitting $150,000. The rent for a two-bedroom apartment has climbed nearly 28 percent, to $717 a month.

In contrast, wages haven't kept pace, increasing 20 percent during that time. Nearly half of all Vermonters who rent are spending more than 30 percent of their income on housing, which experts agree is too much.

One key reason for the situation is the sharp increase in high-end housing construction. The median new-home sales price in 2003 was $265,000 — out of reach for average Vermonters. Exacerbating the problem is the fact that more than 9 percent of annual home sales in Vermont shift primary residences to vacation properties.

New housing has become available in Burlington and South Burlington, and is planned for Winooski, which will ease the pressure somewhat in Chittenden County, but the overall problems remain: construction costs are high, many communities don't have the appropriate space for affordable housing, and rental income is no longer a strong financial incentive. One of the most stubborn obstacles is the "not in my back yard" opposition to affordable housing projects.

That's too bad because housing construction contributes to Vermont's economy. An estimated 10,000 Vermont jobs were created between 1988 and 2002 in this industry, the report notes. In addition, studies by the National Association of Home Builders found that building 100 single-family homes generates about $11.6 million in economic activity.

The increase in housing costs is not going to stop, given that it's a decades-long trend that is shaking up prices across the country. Vermont has time to address the needs, but time is running out.

Good programs, including those offered by the Vermont Housing Finance Agency, have helped many Vermonters find housing. But a solution that reverses the negative trends evades advocates and experts.

They put forward broad recommendations worth consideration, including:

Increased housing advocacy from state and local leaders, business people, builders, the real estate community, the faith community, and others. Everyone has a stake in the problem; everyone must play a role in finding the fix.
Towns should reduce regulatory barriers to housing construction whereever feasible (obviously, communities can't sacrifice environmental and other protections found in valid regulation).
The Douglas administration and lawmakers must continue the state's on-going investment in affordable housing programs.
Employers might explore benefit packages that include housing assistance.
All Vermonters can participate in the debate by joining housing task forces, public hearings on the issue, and other efforts in their local communities.

Last week's conference put a needed focus on the problem. That must continue because everyone deserves a place to call home.