With demand for homes tight, MaineHousing underscores need for affordable housing
Courtesy / 55 Weston Ave. LLC
A rendering of 55 Weston Ave., an affordable housing development in Madison with 36 units.
Maine's housing shortage has hit a fevered pitch. MaineHousing, which released its annual report Monday, said affordability remains one of the biggest challenges in meeting housing demands.
Maine will need at least 84,000 new homes within the next seven years, the state housing agency said in a report that came out in October 2023. The housing agency said at least 38,000 homes just to meet the current demand. The figure exceeds the current inventory by 5%.
In its report, MaineHousing doubled down on the goal of providing affordable housing.
"The challenge of creating enough safe, warm and affordable homes for all Maine people has never been more daunting. The costs of building materials, labor, land and capital are all at historic highs. The latest U.S. Census data shows us that Maine continues to hold the dubious demographic distinction of being the 'oldest' state in the nation," Daniel Brennan, director of MaineHousing, wrote in his introductory letter in the annual report.
He cited a bright spot: Maine's population is "rebounding as we see a steady uptick in people choosing Maine for their new home, drawn to our high quality of life and in search of something better for themselves and their children."
Last year, MaineHousing's home-ownership department purchased $172.7 million in loans, or 820 total loans. The average loan was $210,611, while the average purchase price was nearly $230,000.
"This allowed buyers to obtain properties in good condition and ready for occupancy," MaineHousing said in the report.
Median sales price surges
It's harder and harder to find affordable houses.
Maine's median sales price surged to $380,000 in March, a 12.6% increase from $337,500 in March 2023, according to Maine Association of Realtors report released April 18. The all-time high was $385,000 in June 2023.
Maine Listings data shows that the most expensive home purchases in March were in Cumberland County, where the median sales price increased 13.5% to $533,500. York County homes were the second-most expensive, rising 13.7% to an MSP of $499,250.
Affordable housing coming online
In 2023, 751 units of affordable housing were added at a total of 19 projects, MaineHousing said in its annual report.
This year 1,852 units are under construction.
Significant funding for affordable housing is coming from various sources, MaineHousing said, citing programs like the Rural Affordable Rental Housing Program, created under Gov. Janet Mills' Maine Jobs and Recovery Plan. The program is part of an investment of $1 billion in American Rescue Plan funds for a wider range of economic development, including job creation.
The first project coming to fruition under the Rural Affordable Rental Housing Program is 55 Weston Ave. in Madison — a project that has an added bonus of using insulation manufactured at the new TimberHP plant elsewhere in Madison.
The American Recovery Plan also helped fund the Affordable Homeownership Program, which is using $10 million in funding channeled through the Maine Jobs and Recovery Plan.
Also last year, MaineHousing awarded a contract to the Brunswick-based Genesis Community Loan Fund to assist municipalities, economic development groups, cultural organizations and others in developing new housing, particularly in rural areas.
To see the MaineHousing annual report, click here.
See also: 6 efforts that are tackling the shortage of affordable housing in Maine.
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