Mainebiz Special Editions

V O L . X X X I N O. X I I § 2 J U N E 2 , 2 0 2 5 16 Interestingly, 78% of our new neigh- bors moved here from other states, and 22% from outside of the U.S. In-migration has been most keenly felt in Cumberland and York counties, where many higher income new resi- dents have been able to purchase and rent, effectively reducing supply for lower-income families. Additionally, housing stock has been affected in these counties by homes being used only seasonally and properties being con- verted for short-term vacation rentals. One example is Kennebunkport, where 51% of houses are owned by people who are not full-time residents. The need is acute Szanton has focused on projects that include a percentage of "affordable" units (priced at varying percentages of area median income) which utilize tax credits and subsidies, which is the only way he says projects can "pencil out" in this economy. He's complet- ing a 63-unit apartment building in Portland's Libbytown neighborhood, in which all of the units are reserved for lower-income residents. Targeted for completion in July, the building is not yet being leased but he's already received 230 inquiries — for 63 apart- ments — without advertising. "e need is more acute now than it's ever been," Szanton told us. "We've never had any problem leasing our buildings, but there's a desperation now that we haven't seen before. "Maine is desperate for hous- ing. It's like taking a dry sponge and dripping a few drops of water on it, and it just absorbs it instantly." Szanton's experience is consistent across the state, but as Mainebiz has checked in with policymakers and housing advocates, we're seeing some cautious optimism that housing avail- ability could be growing over the next few years, and more supply tradition- ally brings prices down. Single-family home prices have stopped rising, for now Single-family home starts are being added in very small numbers, infill builds of just a few units. But prices of existing homes have seen decreases since peak- ing in the low $400,000 range last year. e median sales price of a house in March was $376,260, a slight dip from $381,500 in February. By com- parison, the median sales price for March in the Northeast was $468,000. Currently a household needs an income of $100,000 to afford the median home price in our state. Maine's median household income is $63,200. There's growth in the rental sector While single-family home starts are rare, thousands of apartment com- plexes and condos, both "affordable" (priced to not exceed 30% of house- hold income) and market-rate, have recently been built across the state and there are many more under construc- tion. Mainebiz has been keeping tabs on projects in more than 30 communities. MaineHousing, a state agency that finances lower-income projects, completed 775 affordable housing units last year. Another 1,005 units are in progress. Two of the largest projects in the state are at Brunswick Landing and at the Downs in Scarborough. Bruns- wick Landing is a 3,200-acre mixed- use community at the former site of Brunswick Naval Air Station, where developers have built or refurbished a total of 2,250 housing units, across all types and price categories. Monthly rents range from $1,500 to $3,000. At the Downs development in Scarborough, 622 housing units have been built so far; a total of 1,500 will be completed over the next 7 to 10 years. Units range from single-fam- ily to apartments and condos, and some are reserved for lower incomes. Rents for two-bedroom market-rate apartments average $2,450 to $2,745. Portland-based Developers Collab- orative continues to create multi-family housing, much of which is classified as P H O T O / C O U R T E S Y M & R H O L D I N G S L L C "State of Maine Housing Production Needs Study," released in October 2023, was a joint project between MaineHousing, the Governor's Office of Policy Innovation and the Future and the Maine Dept. of Economic Development. The 72-page study was prepared by national consulting firm, HR&A Advisors. An 83-page follow-up report was pub- lished in January 2025, "A Roadmap for the Future of Housing Production in Maine," also prepared HR&A Advisors. » C O N T I N U E D F RO M PA G E 1 4 C O N T I N U E D O N PA G E 1 8 » When we think about young professionals and empty nesters, those are customers for our small business retailers, restaurants and professional services. — Kevin Jensen Gorham economic development director At the Downs in Scarborough, M&R Holdings LLC has already built 622 housing units, of all types. Plans call for a total of 1,500 over the next 7 to 10 years.

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