In Vermont, Needed Family Child Care Faces a Housing Shortage
In Vermont, housing is on everyone’s minds these days – how to build more of it, and how to make it affordable for more families. There are many ideas about increasing funding and reducing regulations to make it more attractive for developers to build in Vermont. But housing is directly connected to another challenge facing communities across the state: access to child care.
In 2023, with Act 76, Vermont began investing more public money to make child care more available and affordable, and the plan is working. At First Children’s Finance Vermont (FCF-VT), staff have seen firsthand successful changes in locally owned child care centers that might otherwise have closed. They’ve seen entrepreneurs write business plans, apply for grants and loans, and successfully realize their dreams of owning a business. They’ve also seen homeowners create inspiring spaces to care for other people’s children.
Since 2023, the number of child care programs in the state has increased modestly, and the number of child care spaces has grown enough to reduce the overall child care need gap by 19% over the past two years.
Public investment has made it possible for home-based family child care owners to earn a better living. And yet, the number of these businesses – so integral to rural communities – has barely stabilized after 10 years of decline. When people ask why Act 76 hasn’t led to more growth in family child care, FCF-VT points to housing.
These are home-based businesses, so the first thing providers need is a home – and not just any home. To care for up to six young children and four school-aged children after school hours, providers need adequate indoor and outdoor spaces. Homes that fit these requirements are expensive and difficult to find. According to the 2025-2029 VHFA Vermont Housing Needs Assessment, the homeowner vacancy rate in Vermont is 1.2%; anything below 2% is considered a shortage. In this same report, VHFA reports that fewer homes are for sale – about half as many in 2024 compared to 2020.
To further complicate the issue, the 2023 median home price in Vermont was $325,000, an increase of about $100,000 over five years. Also, Vermont Realtors reported the median age for first-time homebuyers in Vermont is 40 years old.
For some providers, housing instability is directly tied to whether they can continue their business at all. As Sabrina Weber of Bennington shared: “My rental was just sold, and I’m now trying to find a new place where I can both live and continue my child care program. This isn’t just a job for me; it’s a dream to care for and teach children in a comfortable home setting. I need housing that lets me keep my business going.”
Josephine Boardman, a former family child care provider in South Burlington, experienced a different kind of barrier. After being told her program was out of compliance with her HOA rules, she had to close and has been searching for a new location for months. “I had years of experience and families ready to enroll,” she said. “But I couldn’t find a place where I was allowed to run my program. At some point, you just can’t keep waiting.”
If Vermont wants more family child care homes, it needs to be easier for people to find and afford homes in Vermont.
Despite these challenges, FCF-VT continues to see strong interest from people who want to start family child care businesses and serve their communities. Through the Make Way for Kids Infant/Toddler Capacity Building Grant Program, new family child care homes receive support to renovate spaces, purchase materials, improve outdoor play areas, and build sustainable businesses.
“This grant has helped with materials that are necessary to become a registered child care business,” shared Erin M. of Franklin County.
“These grant funds directly supported the purchase of essential startup materials needed to open a safe, compliant, and high-quality home childcare program,” said Alison H. of Rutland County. “These investments have been foundational in preparing a program that meets regulatory standards while offering enriching, inclusive learning experiences for children.”
A recent analysis of currently operating family child care homes revealed that 113 out of 379 have been in business for at least 20 years, including five programs that have operated for more than 40 years. Like many industries, the sector is approaching a wave of retirements that could create additional gaps in child care access, especially in rural communities. At the same time, newer providers continue entering the field. A review of Make Way for Kids grantees from 2023–2026 showed that 28 new family child care programs were started by people ages 18–34.
Family child care programs are the right size and situation for many families, especially in rural communities. As Vermont continues investing in child care, FCF-VT will continue working alongside providers to strengthen the business side of child care through grants, technical assistance, business planning, and leadership support. Expanding access to affordable homes helps to ensure that family child care continues to grow alongside the communities that depend on it.
