A new report from MaineHousing offers a mixed picture for the state’s housing market.
Affordable housing and overall housing production are rising, while the cost of building a house continues to rise but appears to be stabilizing.
Meanwhile, rising home prices continue to be a primary concern for homeownership, and the rental cost burden has increased sharply among Maine households
MaineHousing says its new report is the first edition of what’s intended to be an annual summary of the state of housing and housing-related issues in Maine.
About 775 new affordable housing units came online in Maine last year, with 727 expected to be completed in 2025.
According to the report, if bipartisan support and funding for affordable housing development remains steady, MaineHousing expects to continue increasing Maine’s affordable housing supply at a steady pace.
But the report shows home prices are rising faster than the public’s ability to afford the costs. Median home prices rose by more than 50% over the last four years in Maine. Average wages for Maine workers, though, grew by just 33%.
The report says the rental cost burden has increased sharply among Maine households earning between $35,000 and $75,000 in total household income. The sharp increase has been consistent for the past six years.
There’s good news on the home construction side. Construction employment in Maine grew by 7.3% from 2023 to 2024. Maine’s construction capacity is growing to meet new home construction and repair demand.
The homeless numbers in the report show the average length of stay in a shelter in 2024 increased to 11.6 days, a 38% increase from the previous year.
The number of homeless people in Maine (in shelters, unsheltered, and in transitional housing) increased from less than 1,700 to over 2,300 in 2024.
On the positive side, Maine saw a 43% decrease in the average number of people
reentering the homeless services system after having found permanent housing.
The report offered one warning about the Trump administration’s recently proposed tariffs, saying there would be an increase in the price of construction materials, even against restrictions called for in the Build America, Buy America Act.
