NORWICH, Vt. (WCAX) – Industry changes are making housing even less affordable, and the problems trickle down from contractors to property owners and to renters.
Riverlight Builders has been in the construction industry for more than 15 years, but since the pandemic, they’ve seen some serious changes. As the walls and ceilings go up in a brand new home in Norwich, contractor Deborah Brien says the cost of building homes is higher than ever.
“We saw the price of a two-by-four go from $3.50 up to $9. That particular item has leveled off; it’s back down, but it’s still about 50% more expensive than it was at the start of the pandemic,” Brien said.
Brien says supply chain issues disrupted the cost of many materials during the pandemic and prices haven’t returned to what they used to be. A workforce shortage of tradespeople also contributes to a higher operating budget.
“It’s very, very difficult to find skilled labor, carpenters in particular. So we have to pay for it,” Brien said.
With a low supply and high demand for housing, the cost of building or buying a house is becoming further out of reach.
“It’s very hard to build affordable housing with costs as high as they are,” Brien said.
Kathleen Berk with the Vermont Housing Authority says development is one of the most important strategies Vermont has in alleviating the housing crisis, and as we continue to lack it, rent soars.
“In the last year-and-a-half to two years, we’ve seen rental housing costs increase on average of about 10% per year,” Berk said.
With an increase in property taxes expected statewide this year, rent will likely rise, too.
Berk is also concerned about money from the feds for subsidized housing resulting in even fewer Vermonters receiving rental assistance.
“They’re having to make choices, right? Maybe they’re not paying their full rent so they can, you know, buy groceries and food for their family,” Berk said.
Brien believes the current housing market will be the new normal.
Housing officials try to stay optimistic.
“I think it takes a village in order to make a difference,” Berk said. “We all need to be compelled to think about what we might do.”