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Editorial: Too many can't afford a place to call home

The median price of a newly constructed home in Vermont has climbed to a whopping $245,900. The median income in this state: $45,700.

It doesn't take a genius to do the math.

Average working Vermonters cannot afford the price of a newly constructed home. Even when they shop around for an existing home — ruling out new construction altogether — the median purchase price is $182,000, requiring an income of $65,000 annually to make the mortgage payments.

Homeowners throughout the state have seen their property values increase sharply, even double in places like South Burlington, over the last decade. There's a chorus growing louder with each reappraisal: "If I hadn't bought my house back when, I couldn't afford it today."

Vermont is not alone in seeing housing prices climb through the roof; it's a national challenge. The special problem here, however, is that incomes haven't kept pace with the housing inflation, creating a divide that is growing larger with each passing year.

This imbalance matters because all Vermonters deserve a decent place to live. And those who cannot find housing end up on taxpayer-funded housing programs or in homeless shelters funded through donations and government assistance.

Employers complain that they struggle to fill jobs because workers can't afford the mortgages or rents required to live in this state. They, too, have a direct stake in easing this housing pressure.

No one wins when Vermonters cannot find a home or apartment they can afford.

Some communities, including South Burlington, have specifically planned for and created affordable housing for residents. Burlington has imposed "inclusionary zoning" to encourage the development of affordable housing in new projects.

These are good steps that have provided homes, condominiums, town houses and apartments for Vermonters.

But even those are very small steps down a very long road.

Increasingly, people are wondering aloud whether this state is at a crossroads, poised to become a place where only the wealthy can afford to live. It is important that everyone — state housing officials, the business community, low-income advocates, housing experts, and others — join forces to consider new ideas to keep housing affordable for working Vermonters.

Trying to solve such a market-driven problem altogether might be optimistic. But easing the crunch — while also attracting higher paying jobs to boost income — is a step in the right direction. Essentially the goal is to make it financially attractive to builders to do the right thing and include low- and moderately priced housing in their projects.

Some ideas worth considering include:

Adequate funding for the Vermont Housing and Conservation Board, which has a proven track record of locating and rehabilitating existing housing for low-income Vermonters.

A public-private partnership to aggressively restore downtown housing, particularly upper-story apartments over store- and business-fronts. In some cases, this might involve installing sprinklers, fire exits and other relatively easy fixes.

Local and state zoning changes or incentives to encourage a mix of low- and moderately priced housing in designated growth areas. Ease the red tape, fast-track appropriate projects, or include tax credits.

Survey communities with excess infrastructure capacity, such as sewage, to handle additional housing, and offer incentives to developers to create a mix of housing in those areas.

The Agency of Commerce and Community Development will resurrect a controversial proposal to tap state-owned property for affordable housing projects. This might work on a case-by-case basis, but would require a public process for determining if each site is appropriate.

Obviously, a continued focus on attracting higher-paying jobs to Vermont is another component of this challenge. Raising the median pay in Vermont would go a long way toward closing the growing gap between what people earn and the homes they can afford.

Vermont will continue to lose jobs and young people unless this serious problem is addressed. This summer, heading into the fall elections, is a great time to ask the candidates for their ideas on how to ensure working Vermonters can afford a place to call home.