Updated September 2024

Author: Agency of Human Services Central Office

We would like to see an increase in the percent of people in Vermont who spend less than 30% of their income on housing.

Over the past ten years the percentage of Vermont households spending less than 30% of their incomes on housing has increased slightly, from a low of 62% to a high of 68%. This may signal a move in the right direction; however, the trend has not changed significantly in the last several years. And the story of what this means for people and communities in Vermont is more complex on-the ground, with variation between geographies and demographic characteristics.

Those households who spend 30% or more of their income on housing are considered “cost burdened.” This reflects the fact that the remainder of their income may not be enough to cover the cost of other essential needs after spending so much on housing. Having less money available for things like healthy food, health care, and safe transportation is linked to stress, mental health problems, and an increased risk of disease.  

The current Vermont value is not significantly different from the US average. You can find more housing data on the U.S. Census American Community Survey site.

We know that the factors which impact housing costs and the ability to afford housing are very complex. Because of this, any single entity working on its own cannot overcome the many challenges and barriers. Housing is such an essential contributor to overall well-being and the ability to fulfill other basic needs that it has become a priority for government and community organizations across the state.

Each of the partners below may have a role to play in improving the availability of affordable housing in the state of Vermont. Follow the links below to learn more about the work being done to support affordable housing in Vermont.

• Governor’s Housing Council
• Agency of Human Services
• State and Local Housing Authorities
• State and Local Land Trusts
• Private Landlords
• Supportive Housing Providers and the Department for Children and Families
• U.S. Department of Agriculture – Rural Development
• U.S. Department of Housing and Urban Development
• Housing & Homelessness Alliance of Vermont
• Vermont Agency of Commerce and Community Development
• Vermont Community Development Board
• Vermont Housing and Conservation Board
• Vermont Housing Finance Agency
• Vermont State Housing Authority

Expanding policies and programs that make housing more affordable reduces the proportion of Vermonters that are cost burdened. Taking advantage of funds provided by the federal government allows programs in Vermont to create, enhance, and sustain efforts to support more affordable housing. And collaboration between public and private partners is essential.

Here are some of the strategies currently happening in Vermont:

• Extend low-income housing tax credits
• Provide grants for communities and organizations to build affordable housing—especially in locations with low flood risk
• Establish and grow public and private funds for housing investments that provide more flexible financing options
• Educate organizations, communities, and state entities to better understand the complexity of housing and how they can work together to make housing more affordable
• Educate homeowners on how to take advantage of financial supports and subsidies to make their housing more affordable
• Weatherization programs which make affordable housing safer so people can stay in their homes

Those households who spend 30% or more of their income on housing are considered “cost burdened.” This reflects the fact that the remainder of their income may not be enough to cover the cost of other essential needs after spending so much on housing. Having less money available for things like healthy food, health care, and safe transportation is linked to stress, mental health problems, and an increased risk of disease.  

Equity

The percent of households that are cost burdened due to paying more than 30% of their income on housing is higher among renters than those that own their homes (with or without a mortgage). This has an inequitable impact on people who face barriers to obtaining a mortgage loan or finding available housing in rural areas. Also, lower cost housing may be associated with older homes which have a higher likelihood of lead or other unsafe conditions that increase health risks to households.

Low incomes and limited housing options are a major driver of homelessness and increased risk of serious health conditions. You can learn more about this in the Health Needs of Unstably Housed Vermont Residents data brief.

This data is taken from the U.S. Census American Community Survey 1-year estimates, Table DP-04. This measure was not calculated as usual for 2020 due to interruptions in normal processes as a result of the COVID-19 pandemic.