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W W W. M A I N E B I Z . B I Z 9 D E C E M B E R 1 0 , 2 0 1 8 Why is the pace so dramatically off that of 2005? Demographics are partly to blame, say two economists we talked with. "My sense is the demographics are different from before the bust," says Chuck Lawton, former chief economist for Planning Decisions Inc. The population is older. Retirees are downsizing and going into condos. Lawton said a building boom that stretched from the 1990s into the early 2000s was driven primarily by families with young kids. That demand created suburban growth in Scarborough, Cape Elizabeth and Cumberland, among other Portland- area markets — but it also took time for the new housing to be "absorbed." "The trend you've noticed isn't unique to Maine. Nationally, building permits are well below peak levels, too. Of course, there are regional variations within the state as well — Cumberland County has caught up more, for exam- ple," said Amanda Rector, the Maine state economist. "Demographics are probably the largest contributing factor in Maine. Building permits tend to increase when new household formations increase: Young adults moving out of their parents' homes and into their own homes. Maine has relatively few young adults, thus less need for new homes. We've seen increased population growth and in-migration the past couple of years; if that trend continues, we may see building permits continue to increase as well." She cites another factor: Millennials across the country have delayed house- hold formations longer than previous generations. "Part of this is likely in response to the Great Recession and the slow recovery; part is also likely a response to the increased student loan debt burdens shouldered by this generation," she said. Future housing demand may be focused more on apartment buildings, both economists said. "[Today] there aren't the families seeking and able to afford [new] homes," Lawton said. "Now school enrollments have dropped off and there's an absence of families with kids… The nature of the demand is from empty nesters and smaller families." Lawton said pricing and restrictions may also play a role. Even with a lack of housing, potential developers are facing resistance in certain areas, a sense that there's been enough development, or NIMBY. The Maine College of Health Professions in Lewiston, in conjunc- tion with the Maine Health Care Association in Augusta, announced its inaugural Licensed Practical Nurse program, filling an educational void in Maine while creating an important ca- reer ladder for direct care workers. Can you hear me now? Plan would reduce 'dead spots' A major expansion is in the works to provide cell phone service in Stonington. Town Manager Kathleen Billings told the Ellsworth American that AT&T and U.S. Cellular are erecting cell phone towers there. Cell coverage throughout the Blue Hill Peninsula is spotty, but a new comprehensive plan calls for reduc- ing the "dead spots." Stonington's com- prehensive plan identifies cell service as "poor or non-existent" in many parts of the town and identifies enhanced telecommunications capabilities as a top priority. "Given the essential need for most businesses to have a high-speed internet connection and reliable fast cell phone service, the town needs to improve that capability in many parts of towns in order to create diversified economic opportunities," according to the comprehensive plan. Nonprofits plan affordable housing on MDI Island Housing Trust and Maine Coast Heritage Trust have jointly acquired 60 acres on Mount Desert Island, with half to be used to build workforce-affordable housing. e Mount Desert Islander reported that Maine Coast Heritage Trust will retain half for conservation and Island Housing Trust plans to build up to 11 homes on the remainder. Workforce housing is much needed in Bar Harbor, where the affordable-home market of the past has been overwhelmed by online rental markets like Airbnb. What few houses are available on the island are unable to handle year-round workers from Jackson Lab, Mount Desert Island Biological Labs, College of the Atlantic and Mount Desert Island Hospital, among other institutions. N O T E W O R T H Y M I D C O A S T & D O W N E A S T The Maine Theater Fund of the Maine Community Foundation in Ellsworth awarded 20 grants that total $75,250 to support professional and commu- nity theaters in the production and presentation of live theater. Cerahelix opens Bangor manufacturing site Cerahelix, an Orono-based innova- tor of ceramic filters for a wide range of industries including mining, food and beverage and pharmaceuticals, is revving up for its next phase with the opening of a manufacturing site in Bangor. e facility in in the Bangor Innovation Center. Susan MacKay, who is the CEO, Karl Bishop and Donald MacKay founded the company in 2011. MacKay said the company now has nine employees in Orono and two at the new Bangor facility, as well as two executives working remotely. MacKay added that another person has started in Orono, bringing its total employee count to 14. N O T E W O R T H Y N O R T H E R N & E A S T E R N Eastern Maine Development Corp., Four Directions Development Corp., MaineStream Finance, New Ventures Maine, SCORE, Maine Small Business Development Corp. and Scratchpad Accelerator joined together to form Business Resource Partners for Greater Bangor. The collaborative helps businesses grow through education, referrals and personalized advising. Katahdin Bankshares Corp., parent company of Katahdin Trust Co. in Houlton, announced that it declared a cash dividend of $0.1075 per share for the fourth quarter of 2018, a 7.5% increase over last year's fourth quarter dividend. The dividend will be payable on Dec. 20, 2018 to all shareholders of record as of Dec. 13, 2018. The company also declared a cash divi- dend on its preferred stock Series D of $54.6875 per share for the fourth quarter of 2018, payable on Jan. 15, 2019 to shareholders of record as of Jan. 5, 2019. Cerahelix, a company that produces an energy efficient water reuse tech- nology, opened a new manufactur- ing facility at 40 Johnson St. in the Bangor Innovation Center. Building permits on the rise — but can't touch pre-recession numbers B y m a i n e b i z s t a f f M aine is on pace to record a post-recession high in building permits. At the current rate, Maine would have 4,711 by year's end, topping last year's 4,607 building permits issued, according to the U.S. Census. Through October, the latest month available, there were 3,926 permits issued. Most are for single-family homes. Yet the pace is still far from matching pre-recession levels. In the past 15 years, the number peaked in 2005, with 8,747 building permits issued. The low point was 2011, with 2,299. B I Z M O N E Y Demographics are probably the largest contributing factor in Maine. — Amanda Rector Maine state economist N O R T H E R N & E A S T E R N 1 Through October S O U R C E : U.S. Census TOTAL BUILDING PERMITS ISSUED IN MAINE, BY YEAR M I D C O A S T & D O W N E A S T 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1 8,383 8,765 7,304 5,690 3,573 2,766 2,962 2,299 2,788 3,212 3,281 3,688 4,164 4,607 3,926

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