New homes coming to Vermont for those in need

Vermont is taking big steps to tackle its growing housing crisis by investing $28 million to build 241 affordable apartments across seven towns. This push comes as the state faces rising construction costs and a sharp increase in homelessness since 2020—both nearly doubling in that time. With demand far outpacing supply, the state is using tax credits to help developers build homes for low-income families. But competition is fierce, and only the strongest proposals win funding. Three large projects will share the majority of the money, totaling $26 million. One will bring 30 new apartments to Highgate, with construction starting next year and moving day set for 2028. Another project in Winooski will clean up a former industrial site before building 24 homes, while a third in White River Junction will add 48 units by late 2027. These aren’t just new builds—they’re part of a longer plan to refresh older neighborhoods too.Four smaller projects will get just under $2 million to fix up or expand existing housing. Some will restore old apartments to keep them affordable, like in St. Johnsbury where 18 homes are being preserved. Others will mix old and new, like in Grand Isle where a project will blend renovated and freshly built units for older adults. One Burlington project stands out—67 new apartments will rise on a currently empty lot, part of a much larger plan to rebuild an underused part of the city. But is it enough? While $28 million sounds like a lot, Vermont’s housing problems run deep. Even with these new homes, many families will still struggle to find stable shelter. And with costs and homelessness both climbing fast, some wonder if this is just a temporary fix in a much bigger battle.