Mainebiz Special Editions

W W W. M A I N E B I Z . B I Z 17 Fact Book / Doing Business in Maine Q UA L I T Y O F L I F E Likewise, New England-regional analyst Tom Dworetsky of Camoin Associates told Mainebiz issues like the cost of materials and lack of con- struction labor may also be factors in the slowdown of projects on the board. "With interest rates remaining high and exist- ing homeowners hesitant to give up the lower mortgage payments they locked in prior to the pandemic, the inventory of for-sale existing homes will remain constrained," Dworetsky said. "New construction will continue to be in demand to supplement inventory available to buyers who may be unable to wait for more favorable rates. at is C O N T I N U E D O N F O L L OW I N G PA G E » Bangor • Portland • Portsmouth • (207) 827-4456 • (800) 648-4202 • sewall.com INFRASTRUCTURE FOR NEW ENGLAND 2022 Scan code for more information • Solar & wind energy site design • Stormwater management • Transportation/traffic engineering • Survey/topographic mapping • Natural resource economics/ wood basket studies • GIS asset management systems Permits issued for structures of five units or more have surged M aine's need for housing has been estimated to be 20,000 housing units. Multifamily housing is a key part of what's needed. Not just affordable hous- ing, but also workforce units and market-rate apart- ments for singles, the elderly and young families. Looking at the building permits issued, the num- ber of units approved actually hit a 20-year peak last year, according to U.S. Census Bureau data. In 2022, permits were issued for 72 structures of five units or more, adding 1,866 units to Maine's housing stock. In the past two decades, the lowest point came after the Great Recession of 2008-09. The low point was actually 2010, when permits were approved for 20 structures of five units or more, and just 132 units. With higher interest rates and the ongoing chal- lenge of managing construction costs, it's not surpris- ing that the number of building permits has dropped off from last year. But perhaps not as much as we might have thought. It's likely 2023 will still match up well with many years in the past two decades. Through the first five months of the year, Maine has had approved building permits for 31 structures with five units or more, totaling 481 units. Projecting out through the year, Maine would have approved 72 structures of five units or more — a total of 1,154 multifamily units, which would be the second-highest level in the past 20 years. What's in the works A number of entities are hard at work creating mul- tifamily housing. Projects are being led by both the private sector and publicly funded or quasi-govern- mental organizations. On the private sector side, Redfern Properties is developing 201 Federal St., with 263 apartments, most of which will be studios or one-bedroom places. In Lewiston, Szanton Cos. recently started work on Picker House Lofts, which will have 72 units offered at mixed income levels. Avesta Housing, a Portland nonprofit, said at the beginning of the year it expected to develop 167 new housing units. Evernorth, an investment fund with headquarters in Portland and Burlington, Vt., is investing $54 million in affordable housing, including five projects in Maine. Maine will see 188 new housing units as a result. S O U R C E : U.S. Census Bureau BUILDING PERMITS FOR NEW, PRIVATELY OWNED HOUSING UNITS IN MAINE 7.0K 6.5K 6.0K 5.5K 5.0K 4.5K 4.0K 3.5K 3.0K 2.5K 2.0K 1.5K 1.0K 0.5K 0 2020 2021 2022 2023 Through April 1 unit 2 units 3–4 units 5+ units 5,304 6,530 7,105 1,572

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