Vermont’s Housing Market: GDP Impact, 30,000+ Jobs, and 20% Vacancy Rate Explained

Vermont tourism leaders are expressing concerns over a proposed tax on second homes, warning it could negatively impact the state’s tourism industry, which contributes significantly to Vermont’s economy and supports over 30,000 jobs.

The warning comes amid ongoing discussions about housing affordability and vacant properties in Vermont. According to the Vermont Housing Finance Agency, nearly 20% of homes in the state are considered vacant, a figure that has drawn attention from policymakers exploring solutions to address housing shortages.

Tourism officials argue that second homes play a vital role in sustaining local economies, particularly in rural and seasonal communities, where short-term rentals and part-time residents support businesses ranging from lodging and dining to recreation and retail. They caution that imposing additional taxes on second-home owners could discourage investment and reduce visitor spending.