Vermont report urges bulk purchases and statewide codes to scale off‑site homebuilding

A joint hearing of the House Commerce & Economic Development Committee and the House General and Housing Committee in Montpelier on Feb. 5, 2025 heard a report recommending bulk purchases, expanded factory capacity and statewide building‑code standards to scale off‑site homebuilding across Vermont.

The report, presented by consultant Jeff Lubell and co‑authored by Seth Leonard, was commissioned by the Vermont Housing Finance Agency, the Department of Housing and Community Development and other state partners to study “opportunities to utilize off‑site construction to meet Vermont’s housing, workforce and climate goals.” Lubell told lawmakers that “off‑site construction is the production of housing in a factory environment rather than on‑site.”

Why it matters: Vermont faces a shortage of housing affordable to working families and very high construction costs. Lubell said projects that applied for 9% low‑income housing tax credits to VHFA in February 2024 averaged about $520 per square foot — “over $500,000 a unit” — which he said makes affordability without large subsidies impractical. The report and agency witnesses described off‑site methods — manufactured housing, volumetric modular and panelized construction — as tools to reduce unit costs,…