By Kaziah Haviland Montgomery and Bob Ackland
All of Vermont is facing an affordable housing crisis; however, the problem is more severe in the Mad River Valley. Housing is often debated in many circles, but hopefully, the facts will speak for themselves. It should be pointed out that affordable housing means many things to many people. Relative to the situation in the Mad River Valley, housing is affordable when a person or household who makes 80% of the area medium income or below can spend less than 30% of their income on all housing-related expenses (e.g. utilities for renters and insurance and taxes for owners). In The Valley, this equals $64,250 annual income for a family of four who can spend less than $1,606 on housing each month.
An important consideration for the Mad River Valley is the aging of its population. In the Mad River Valley, the average age for the three towns is 47 years, five years older than the state average, and almost eight years older than the average for the nation. This means many things, but as people retire and stay in The Valley, their income often drops making it harder for them to hold on to their homes while maintaining a good quality of life.
According to recently collected data from the VT Affordable Housing Coalition and local data from the recent tri-town commissioned housing report, the Kennedy Report, the lack of access to affordable housing is limiting opportunity and changing the demographics of The Valley community, driving its workforce to live elsewhere. Projected trends demonstrated in the Kennedy Report, show a community that is largely unable to provide homes for families and individuals who are younger than age 65 or make less than $100,000.
The cost of purchasing housing is becoming increasingly less affordable in the Mad River Valley. The median sales price has increased by 19% from 2014-2018 and has likely only been exacerbated by the recent uptick in sales.
The median annual income for a two-person household in the Mad River Valley in 2019 was $62,950 a year. If that household paid 30% of their income on housing-related expenses, they could afford to purchase a $225,000 home. At the end of 2019, the overall value of owner-occupied units in the Mad River Valley was $334,300, meaning homeownership was unattainable for a majority of people who work here.
In 2018, Vermont had a 4.1% rental vacancy rate, the fifth lowest in the nation. The Kennedy Report found that in the Mad River Valley, this rate is closer to 1%, demonstrating a severe lack of supply. A person must make $47,960 to afford a moderately priced two-bedroom unit in the Mad River Valley. With 68% of workers in the Mad River Valley making less than $40,000/year, it is increasingly hard to find affordable rental housing.
The provision of diverse, affordable housing options is a crucial part of keeping the community together, allowing all to find or keep their home in this special place. So, what can we, as a community, do?
We are not the only community facing this issue. This is a national problem. To stimulate conversation and provide opportunities to learn from other communities and field experts tackling this issue, the Mad River Valley Housing Coalition has organized a five-part virtual talk series in partnership with Mad River Valley Planning District and AARP Vermont. This series will examine the current housing situation and present effective solutions that have been applied elsewhere. All community members are invited to participate so we can hear your story and better adjust national solutions to meet our local needs.
Speakers will include:
Mad River Valley Housing Gap: Joshua Schwartz (Mad River Valley Planning District), Doug Kennedy (Doug Kennedy Advisors). Presentation of data results describing the current housing situation in the Mad River Valley.
Smart Growth in Small Towns: Kate McCarthy (Vermont Natural Resources Council). Developing economically prosperous, socially equitable and environmentally sustainable communities in rural Vermont.
Creating Subsidized Housing in Vermont
Eileen Peltier (executive director, Downstreet Housing and Community Development)
Exploring the process for creating and funding subsidized housing in the Mad River Valley.
Accessory Dwelling Units (ADUs): Eli Spevak (Orange Splot, LLC), Kaziah Haviland (Mad River Valley Housing Coalition), Kirby Dunn (Homeshare Vermont). Increasing affordable housing options in the Mad River Valley through small scale solutions with big impacts.
Housing Trust Funds: Todd Rawlings (Burlington Community and Economic Development Office). Creating opportunities for affordable housing through Housing Trust Funds.
Link to sign up is on the Facebook page @MAD RIVER VALLEYHousing. Email
Haviland Montgomery lives in Waitsfield and is a consultant to the Mad River Valley Housing Coalition. Ackland lives in Warren and serves on the Warren Select Board, is chair of the Mad River Valley Planning District Steering Committee and serves on the board of the Mad River Valley Housing Coalition.
