From the Editor: Mixed signals on where Maine’s economy is headed
While the ongoing pandemic has been an ever-present threat this year, I feel fortunate to have been able to get around the state more in 2022 than either of the two previous years.
In the course of going to Mainebiz events or reporting stories, I’ve spent time in Presque Isle, Bangor, Machias, Milbridge, Brooklin, Lewiston, Auburn, Skowhegan, Madison, Augusta, Belfast, Brunswick, Rockland, Vinalhaven and much of southern Maine (though I also live there).
My sense has been that while the Portland area continues to see the lion’s share of development, other places are benefitting from the perception at least that Portland has become too expensive or has created too many barriers with regulations.
A recent report by Noah Stebbins at the Boulos Co. said Lewiston and Auburn have seen new investment dollars flowing their way as southern Maine locations become harder to develop.
As Mainebiz reported recently, Stebbins said Portland’s inclusionary zoning provision and stricter rent control measures have frustrated housing developers, “leading to higher price points, fewer buyers, and less affordable residential housing.”
Mainebiz has reported on development happening in Bangor, Augusta, Skowhegan, Brunswick Landing and L/A, among other places. Part of the investment may be from developers who have been diverted from Portland, but I’d like to think it’s also a matter of a rising tide floating all boats. Many areas have been overdue for new development and business growth. And Maine overall has had an influx of investment in the past two-and-a-half years.
Now, where we’re headed becomes a bit trickier to see. We’ve already seen the housing market soften; we still have a housing shortage and prices are high, but the homebuying frenzy of the past couple years is slowing. It remains to be seen how rising interest rates will affect commercial development.
Add to that inflation, continued supply chain issues, widespread labor shortages, international conflict, ongoing political divisions, Maine’s gubernatorial race and the picture gets even cloudier.
At least for now it’s been good to see Maine’s economic growth stretch well beyond Portland.
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