Yes, noticeably. The preservation that makes the village beautiful also caps how many rooms exist, and demand in foliage season and over holidays is relentless. If the village rates are beyond your budget, look at Quechee, White River Junction or Rutland and drive in.
Central Vermont at Woodstock's elevation usually peaks in the first half of October, with the hills above the village turning a week or so before the valley floor. Book rooms for October months ahead, and expect US-4 and the back roads to be slow with leaf traffic on weekends.
You can spend a whole weekend on foot inside the village: green, shops, restaurants, the national park and the Mount Tom trails all start within walking distance. But the covered bridges, the outlying farms and Quechee Gorge all need wheels.
It is arguably the prettiest season, with snow on the greens and no leaf-season crush. Cross-country trails, the small ski hill at Saskadena Six and easy access to Killington fill the days, though a few seasonal shops and farm attractions run reduced hours.
Live prices for every hotel and inn in the area — free cancellation, updated daily.