As Vermonters, many of us have felt the pinch of our state's housing shortage. Although we may not realize it; our state's housing crisis manifests itself in our high rents, short-staffed workplaces, increasing property-tax burden, aging population, and rising healthcare costs. Making our state inaccessible to young working families has significant consequences.
With an annual deficit of over 5,000 housing units, families are being priced out, young people are leaving, and our economy is suffering. Just last week, Governor Phil Scott signed Executive Order (EO) 06-25, a sweeping directive aimed at promoting housing construction and rehabilitation. As a public policy wonk, I dug into this EO in an attempt determine if it's simply bureaucratic tinkering or if it's a bold attempt to cut red tape, lower costs, and get more homes built. While it's too early for hard data on outcomes, the order's provisions could deliver real relief if implemented effectively. I will also say, there's much more to it than our Vermont news outlets portrayed. Most coverage cast this action as a rollback of energy efficiency measures (which were already among the most stringent in the country), but there is actually much more to it than that. The actual text of the EO stretches for ten pages and contains eight different provisions.
Let's break down its potential impacts on cost savings for homeowners, housing production, and permitting speeds, drawing on the details of the order and early reactions from stakeholders.
First, consider the cost savings for everyday Vermonters. Housing in our state has become unaffordable partly due to stringent regulations that drive up the cost of construction. This has been repeatedly pointed out by the bipartisan group Let's Build Homes. The order tackles one of these regulatory hurdles by offering flexibility in energy standards: Builders can now choose between the 2020 or 2024 Residential Building Energy Standards (RBES) by avoiding somewhat costly upgrades like advanced air sealing. Estimates for the cost of compliance with these measures ranges from $1,000 to $12,000.
This move prioritizes affordability without abandoning environmental obligations, as the Department of Public Service will continue training and encouraging higher standards voluntarily and the 2020 standards are still some of the highest in the country. Of course, critics might worry about long-term energy bills, but the order mandates a 2026 report to analyze these trade-offs, ensuring decisions are data-driven.
Additionally, the EO directs agencies to propose fee reductions for multi-family projects targeting median-income families and allows fee deferrals until project completion. These changes could ripple through to lower rents and home prices—critical when a quarter of Vermont renters already spend over 50% of their income on housing.
The EO also relaxes wetlands regulations—limiting oversight to mapped Class II wetlands and shrinking buffers to 25 feet in designated growth areas like downtowns and opportunity zones—providing developers with greater certainty and faster approvals. This intended to unlock growth for programs like the Vermont Housing Improvement Program, which has rehabbed about 1,000 units since 2020 at roughly $40,000 (in state funds) each.
The order also requires state agencies to inventory underutilized public lands by December 2025 for housing development, offering below-market sales or long-term leases to builders. Additionally, extending the Brownfields Economic Revitalization Alliance further targets contaminated sites for redevelopment. Early commentary from legal experts calls this "the most ambitious reform effort to date" for Vermont's inadequate supply. While the scale depends on private investment, these steps could help close the 5,000-unit gap, especially in counties losing working-age residents.
Finally, one of the order's (potentially) strongest provisions is speeding up the notoriously slow permitting process, which critics have long argued deter investment. Agencies must now prioritize housing applications, halve discretionary review periods (aiming for 50% faster turnaround), and issue decisions within 60 days of hearings—or deem them approved if deadlines are missed. Concurrent reviews across departments, rather than sequential ones, are intended eliminate bottlenecks, and a new multi-disciplinary team will meet weekly to fast-track large projects. The order even requests judges to prioritize housing appeals, potentially resolving frivolous delays that scare off capital investments.
To illustrate the potential, here's a snapshot of how the order might impact different aspects of production:
| Aspect of Housing Production | Key Provisions in EO 06-25 | Potential Effect |
| New Units | Energy code flexibility, wetlands modifications | High – Could encourage thousands more units annually by reducing costs and delays |
| Rehabbed/Converted Units | Priority for rehabs, state land inventory | Medium – Enhances programs like VHIP, targeting units at affordable rates |
| Multi-Family/Shelter Focus | Fee reductions, multi-disciplinary team coordination | High – Prioritizes affordable and mixed-use projects in growth areas |
What is the core takeaway here? There are tradeoffs with almost anything we do in the public policy space. However, I believe the goal here should addressing the need for and accessibility of affordable housing, particularly owner-occupied housing that is accessible to young families and builds generational wealth. If we can reduce friction, real or perceived, that is a win. After all, a new home (even built to the 2020 standard) will be significantly more efficient than a home built in 1975 (the average for Vermont's housing stock). If we want to improve the efficiency of our housing stock, new and rehabilitated housing is the way to do it.
In a state where well-intentioned regulations have sometimes backfired, the Governor's executive order seems to strike a pragmatic balance: It maintains federal environmental safeguards and health protections while urging reforms to move Vermont forward in addressing our housing shortage. Environmental advocates may raise valid concerns about relaxed standards, but the order's focus on designated areas and rulemaking by 2026 suggests a measured approach that still maintains high environmental and energy efficiency standards. As Governor Scott noted in his announcement, this is about ensuring "affordability and the State's economic vitality." Vermonters should watch closely—contact your legislators to support these efforts, and hold agencies accountable through the upcoming reports.