Maine business leaders join forces to tackle housing shortage

Restaurant owner David Turin speaking at podium.

PHOTO / TINA FISCHER “The housing shortage is crushing the restaurant industry,” Portland restaurateur David Turin said at the launch of a business coalition that aims to tackle Maine’s housing crisis.

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By Tina Fischer

Concerned about Maine’s housing shortage and its impact on the economy, a coalition of business leaders has launched a statewide housing resource and advocacy effort.

The Build Homes, Build Community campaign aims to raise public support for housing and reduce barriers to production at both the state and municipal levels.

Leading the charge are the Maine State Chamber of Commerce, Maine Real Estate Development Association, Portland Regional Chamber of Commerce and Maine Affordable Housing Coalition. They are joined by businesses, trade groups and nonprofits across the state.

“We will not grow our economy unless we grow housing,” Patrick Woodcock, president and CEO of the Maine State Chamber of Commerce, said at Wednesday’s launch event at the Hannaford corporate offices in Scarborough.

Underscoring that the problem is not confined to southern Maine, he added that “the only way out of this crisis is to say ‘yes’ to housing production.”

Woodcock said the housing shortage is affecting every sector of the economy, citing the Maine Consensus Economic Forecasting Commission’s projection of just 1% growth in 2026 and zero growth from 2027 to 2029.

Maine needs to add 84,000 housing units by 2030, according to a study commissioned by the state. The report cited several factors, including pandemic-driven in-migration, years of under-building, restrictive zoning policies, rising land and construction costs, an aging housing stock and a growing share of homes purchased as vacation properties.

Home prices outpacing wages.

Shannon Richards, president of MEREDA, said that while Maine's median home price rose by 50% from 2020 to 2024, wages grew by 33%.

“The starting salary for Maine teachers is $40,000 [and] $65,000 for Maine State Police officers,” Richards said. “Yet an income of $100,000 is needed to buy a home.”

Several speakers said that while home prices are out of reach for many buyers, the deeper issue is an overall lack of housing across all types and income levels.

“We need Augusta to reduce barriers, provide incentives and create pro-housing policies,” Richards said. “We need municipalities to support and guide growth, and we need everyone to get educated and engaged to become an advocate in their own communities.”

Impact on hospitality, tourism

Quincy Hentzel, CEO of the Portland Regional Chamber of Commerce, said that while the need for more housing is not a single industry issue, it is hitting hospitality and tourism businesses especially hard.

Offering a business owner’s perspective, Portland restaurateur David Turin of David's added: “The lack of housing is crushing the restaurant industry." He shared stories of staff he’s lost as a result.

Woodcock said that the housing shortage undermines all communities.

“The coalition aims to change Maine’s trajectory, implement pragmatic housing solutions that will unlock housing development across our state and allow our communities and economy to thrive,” he said.