Report flags 'troubling trend' in Maine's shortfall of affordable housing

Photo / Courtesy of Maine Development Foundation The Maine Economic Growth Council released its annual "Measures of Growth" report in Edgecomb on Wednesday. Shown here (from left) are Steve Von Vogt, co-chair of the Maine Economic Growth Council; Yellow Light Breen, president and CEO of the Maine Development Foundation; and Ryan McPherson of Glidden Point Oyster Farm.

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By Renee Cordes

A surge in pandemic-era home buying created a "troubling trend" in the lack of affordability, according to an annual economic progress report released Wednesday.

The report shows that the share of Maine households unable to afford a median-priced home rose from 39% in 2020 to 64% in 2024, based on the methodology adopted by MaineHousing this year. Under that standard, the cost of a mortgage, taxes and insurance would exceed 30% of a household’s income.

The findings were published in the latest "Measures of Growth" barometer by the Maine Economic Growth Council, a nonpartisan group administered by the Maine Development Foundation.

The authors note that while some figures may be inflated by a rise in sales of high-ticket dwellings, the need for affordable housing remains a persistent issue across the state, especially in coastal counties.

Mixed picture

The annual barometer tracks 31 indicators of the state’s economy. It shows that in 2024, increases in the labor force and internet connectivity were tempered by the lack of affordable housing and a lag in research and development spending.

Maine's labor force climbed 1.8% in 2024 to 705,000, exceeding pre-pandemic levels for the first time.

“After years of concern about people leaving Maine, we’re now seeing an influx of new residents,” said Steve Von Vogt, co-chair of the Maine Economic Growth Council and president and CEO of Maine Maritime Composites.

“Many are returning home or choosing Maine for its outdoor recreation, community spirit and safety,” he counted. “It’s a positive shift, and as a business owner and employer, I welcome the potential of this trend to ease the years-long worker shortage.”

At the same time, he said the situation creates even more pressure to ensure that affordable housing options exist for every economic segment and every region in Maine.”

Findings were unveiled Wednesday morning in Edgecomb, home of Glidden Point Oysters, which gets a shoutout in the report for helping chart a new course for Maine’s working waterfront and a multifaceted business model that includes a retail shop, experiential tours and direct-to-consumer shipping.

“While these don’t necessarily generate big profits, they deepen engagement and strengthen the brand’s relationship with consumers,” the 48-page report notes.