Conversations About Short-Term Rentals Reveal Hard Truths
On Saturday, November 8, 2025 the Vermont League of Cities and Towns (VLCT) hosted a full-day Short-Term Rental Summit that brought together nearly 100 local officials from across the state of Vermont. Participants included selectboard members, planning commissioners, zoning administrators, and municipal staff, both in person and virtually.
The event featured presentations from Vermont’s Tourism Commissioner, the Director of the Vermont Housing Finance Agency (VHFA), VLCT’s attorney, leaders from the State Departments of Health, Fire Safety, Environmental Conservation, and Taxes, as well as officials from Ludlow, Waterbury, and Londonderry. Julie Marks, Executive Director of VTSTRA, presented data and context on short-term rentals from the perspective of property owners and managers.
Throughout the day, state experts were consistent on a key point: short-term rentals (STRs) are not the cause of Vermont’s housing challenges. It was repeatedly acknowledged by our housing experts that restricting STRs will not resolve the state’s shortage of available or affordable homes. Instead, restrictions on STRs will reduce tourism revenue that the state uses to subsidize resident tax rates, limit municipal tax revenue, and undermine local businesses that rely on visitor spending.
Vermont has an affordability crisis, not a housing crisis.
Vermont’s conversations about housing often center on the idea of a statewide shortage, but the data presented at the VLCT STR Summit revealed a more complicated reality. In several Vermont markets, including Stowe, the housing supply is considered balanced, with roughly six months of inventory available for sale. A truly constrained market would show far less available inventory and far higher turnover pressure.
The challenge facing Vermont is not a lack of homes; it is a lack of homes that match people’s current needs with what they can afford. This is due to the demographic shift that has weakened the local workforce. Vermont’s population is aging, its labor pool is shrinking, and wage growth has not kept pace with rising costs. At the same time, state and national policies have made the cost of utilities, construction, healthcare, and education higher than ever before. These pressures make it harder for residents to buy or rent homes, regardless of the amount of housing available on the market.
STRs account for only 3 to 4 percent of Vermont’s housing stock, depending on the season, and state experts at the Summit reiterated that STRs are not a primary driver of Vermont’s affordability challenges. Limiting STRs would not correct wage stagnation, demographic decline, or high construction and carrying costs. Instead, it would reduce tourism revenue, weaken rural economies, and shrink the tax base that towns rely on to fund essential services—including education.
Understanding the difference between a true housing shortage and an affordability crisis is critical for shaping effective policy. The data shared at the VLCT STR Summit makes that distinction clear: Vermont’s core issue is affordability, not availability, and long-term solutions will need to address economic and demographic realities rather than targeting sectors that play only a limited role in the larger picture.
Highlights from the VLCT Short-Term Rental Summit
Several key data points emerged throughout the day of presentations. Here are some important highlights:
25% of Vermont’s overnight visitors stay in vacation rentals.
STRs represent 3-4% percent of Vermont’s total housing stock, depending on the season.
At least half of Vermont’s STRs are owned by Vermont residents.
Data on Vermont’s housing stock is freely available to the public at www.housingdata.org
Existing court decisions on STRs are limited, and interpretations of owner-occupancy rules have varied across cases.
Operators with 3 or more STR units on one property, or those who serve food to guests, must hold a Lodging License from the Department of Health.
Municipalities without an agreement with the Division of Fire Safety cannot enforce state inspection requirements. Inspections occur only in response to complaints.
Towns may adopt a one percent Local Option Tax on rooms. Beginning in 2026, towns will retain 75% percent of the revenue rather than 70%.
[VLCT has published full presentation materials for public access: VLCT STR Summit]
In-person conversations are essential for constructive communication & effective outcomes
In the room, the tone was constructive. Some participants arrived with firm opinions about STRs and their impacts on housing, yet conversations grew more open as the day unfolded. Many attendees asked thoughtful questions and expressed interest in understanding the nuances behind STR data and policy.
Online, the dynamic was quite different. The virtual chat filled quickly with frustration, personal attacks, and misinformation, much of it directed at VTSTRA. The contrast underscored an important truth: productive conversations about complex issues almost always happen face to face. When people share space and listen to one another, tensions ease, assumptions shift, and progress becomes possible.
It’s clear that these types of in-person discussions are not happening often enough, and real change will require time, funding, preparation, and a continued willingness from the entire community to engage in humanising ways. Maybe if we stop hiding behind screens we can learn to listen. As members of the same community, we often have more commonality than not.