Data and Policy Shifts Intensify Vermont’s Homelessness Crisis, Now the Second Highest in the Nation
In Vermont, 51 out of every 10,000 residents are homeless, according to the latest HUD estimates. This places Vermont second only to New York State for the highest rate of homelessness in the country. Following Vermont and New York are Oregon, with 48 homeless individuals per 10,000 residents, and California, with 46 per 10,000. The District of Columbia has the highest rate, with 73 unhoused people per 10,000.
Although these rates are alarmingly high, they are somewhat understandable for states with densely populated urban areas. Cities often have higher homelessness rates due to the lack of affordable housing. It makes sense that states like New York have higher rates than states like Montana, which have fewer and smaller urban areas.
However, Vermont’s situation raises many questions. Despite having few major cities, why does Vermont have such a high rate of homelessness? What factors prevent residents from finding homes, and what measures are being taken to address this crisis?
Is Vermont’s High Rate of Homelessness Just a Statistical Quirk?
According to Martin Hahn, Executive Director of the Vermont Coalition to End Homelessness, accurately counting homelessness is challenging. He said states with more shelters can report a more precise count of homeless individuals. In other words, the more homeless shelters a state provides, the better it can track its homeless population.
Vermont excels in providing temporary shelter for its homeless residents, with 96% of the homeless population having access to some form of temporary shelter, the highest percentage of any state. New York follows closely with 94%. This suggests that Vermont’s high rate of homelessness may be a reflection of its more accurate reporting rather than an actual higher incidence of homelessness compared to other states.
Sarah Russell, the city of Burlington’s special assistant to end homelessness, stated that Vermont’s ability to provide temporary shelter “gave us the most accurate and clear picture [of the] actual magnitude of the people who were experiencing homelessness or who were housing insecure.”
The Limitations of Homelessness Statistics
Homelessness statistics are often underestimated, as shown by the high rates of both homelessness and sheltered homelessness in states like New York and Vermont. Without adequate shelter, it’s challenging for officials to assess the gravity of homelessness within their state accurately. Consequently, the true extent of homelessness nationwide is likely more severe than statistics portray.
According to Hahn, HUD’s 2023 Report accurately reflects the severity of Vermont’s housing crisis, with the closure of pandemic-era temporary housing efforts likely exacerbating the issue.
During the pandemic, Vermont used federal funding to temporarily house its homeless population in motels and hotels. However, the closure of these temporary housing facilities has led to an increase in homelessness. Despite a decrease in the percentage of sheltered homeless people, the overall number of homeless individuals in Vermont continues to rise.
In 2020, there were 996 sheltered homeless individuals in Vermont and 114 without any form of shelter. By 2022, the number of homeless residents had nearly tripled, with 2,735 sheltered homeless residents and 45 unsheltered individuals. As of 2024, Vermont now has 3,921 sheltered homeless residents and 166 unsheltered residents, marking the highest increase in homelessness of any state since 2020.
While Vermont’s ability to provide shelter may contribute to its elevated recorded levels of homelessness, this alone does not account for the rise. The increase in both sheltered and unsheltered homeless residents over the past four years indicates that additional factors are at play, exacerbating the homelessness crisis in Vermont.
Three Key Factors Driving Vermont’s Record Homelessness
According to Vermont Public, an independent Vermont-based media outlet, three central factors have contributed to Vermont’s record-setting homelessness.
1) The End of Vermont’s Eviction Moratorium
The first contributing factor has been the end of Vermont’s eviction ban, which lasted during the pandemic. This ban ensured landlords couldn’t evict tenants who failed to keep up with their rent due to financial strain from the pandemic.
On June 15, 2021, Vermont Governor Phil Scott terminated the eviction moratorium. From that date on, tenants who had failed to keep up with their rents lost their homes. And that forced many Vermont residents to the streets.
2) Closure to Pandemic-Era Motel Housing Program
Following the pandemic, Vermont legislatures have slowly restricted access to the state’s temporary housing program. Initially funded by the Federal government during the pandemic, the program once accommodated over 3,000 Vermont residents.
As the state bears the financial burden of the program, lawmakers are debating its future. Eligibility for temporary housing has diminished significantly. As of January, only 681 households were housed through the program, a sharp drop from nearly 2,000 households the previous year.
With pressure mounting on lawmakers about the program’s affordability, its continuation seems uncertain. The legislature has allocated $44M for the program through 2025, but the conditions for those using the motels remain inadequate and fail to address the underlying causes of homelessness in Vermont.
3. Soaring Housing Prices
Vermont’s housing crisis is predominantly driven by its extremely tight market and soaring rents. Between 2023 and 2024, home prices in Vermont surged by 12.8%, the highest increase of any state and nearly double the national average of 6.6%, according to the Federal Housing Finance Agency.
For low-income families and individuals in Vermont, purchasing a home is virtually impossible, trapping them in cycles of poverty that are increasingly difficult to break. The inability to buy a home stifles wealth-building opportunities and perpetuates financial instability across generations.
Maura Collins, Executive Director of the Vermont Housing Finance Agency, underscores the severity of the situation: “Home prices are rising, interest rates remain high, and affordability continues to be out of reach for many Vermonters who don’t already own their homes.”
This issue is not unique to Vermont; it reflects a nationwide trend. Limited housing supply drives up prices, making homeownership unattainable for many and forcing many to the streets.
The solution to Vermont’s homelessness crisis—and the broader national housing crisis—is clear: we need to increase housing supply. By building more homes, Vermont can reduce housing costs, improve affordability, and make homeownership accessible to a broader range of residents, including those in middle- and low-income brackets.
