MONTPELIER, Vt. (WCAX) –
The Vermont Futures Project tracks national data to understand the state’s economic struggles. According to the group’s latest data, the state ranks dead last for economic momentum.
The state struggles with population loss as well as limited economic diversification and slow job growth, according to the group. It’s one of just three states that experienced net population loss between 2023 and 2024.
“What does Vermont want to be when it grows up, and how do we get there?” said the project’s Kevin Chu. He said the latest data reinforces what has been known for years. Vermont has low population growth, is getting older, and the workforce, which provides the tax base, is shrinking. “It’s a direct impact on the affordability of Vermont.”
Crucially linked, Chu said, is the state’s ability to build housing. It ranks 46th for total housing permits at about 2,600. And the cost of the average home has appreciated 61% in the last five years.
“We have to be able to change our built environment to adapt to the changing needs of our population, and we just haven’t done that,” Chu said.
The data shows Vermont struggles with limited economic diversity and slow job growth.
Business leaders said getting out of the demographic doom loop will take a concerted effort from state legislators to pull out the stops and embrace ideas to grow the workforce and housing stock.
“We need more people in Vermont who are contributing to the systems and services we have here, and we need more places for them to live in order to do that,” said Megan Sullivan with the Vermont Chamber of Commerce.
So-called abundance politics attempts to improve Americans’ lives through economic growth and deregulation. But some question who benefits from growth. The Public Assets Institute, a left-leaning think tank, said higher taxes on the top 1 percent and corporations, who they said have benefited from tax cuts from the Trump administration to the tune of $700 million, could help fund some of the state’s most pressing issues like education, health care, and housing.
“There’s certainly a lot that the state could do, and with that $700 million, recouping some of that will go toward filling some of these holes,” said the institute’s Steph Yu.
State lawmakers are expected to keep chipping away at sweeping education reforms, building more housing, and expanding the workforce, but it remains to be seen if and how they will come to a consensus.
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