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The outlines of a new report on Maine’s housing shortage have long been known – the state needs more housing. But, the details of the housing shortage were a bit eye popping – between 76,400 to 84,300 new homes need to be built in Maine by 2030, to meet current demand and to allow the state’s population to grow.
This shortfall of housing has come despite the fact that there has been an increase in permitted housing here. Maine permitted nearly 9 percent more privately owned units last year than it did in 2021, yet a shortfall remains. Not all permitted homes are built.
To meet this target, annual permitting for new homes would need to nearly double. Over the last five years, an average of 4,800 Maine homes per year were permitted. To meet the demand foreseen in the state-sponsored report, an additional 3,700 to 4,500 homes would need to be permitted each year.
As BDN politics editor Mike Shepherd wrote, Maine has achieved such ambitious numbers before. There were more than 8,500 new permitted housing units in the state in both 2004 and 2005, according to federal data. Nearly 9,200 total units were permitted annually on average here between 1985 and 1988.
There are many reasons for the housing shortfall. Maine’s population has grown in the wake of the pandemic as people moved to the Pine Tree State with the switch to remote work. An influx of immigrants, many from Africa, have come here seeking asylum, which has stressed emergency shelter space in Portland.
At the same time, Mainers and Americans are living longer and often staying in their homes for decades after they retire from work.
There is also a shortage of affordable housing, whether it is single-family homes to purchase or rental properties.
There are many potential solutions, including easing restrictions on where and how densely housing can be built.
Some changes are already underway. Last year, the Legislature passed a housing reform bill, which made significant changes such as allowing two units on lots zoned for one and smaller units known as accessory dwelling units on existing house lots.
Many towns, particularly smaller communities, have struggled to implement the new measures.
In addition, developers and housing advocates say, changes in local zoning remain a critical piece of the puzzle, pitting statewide goals against local control.
Beyond these housing specific concerns, larger economic trends are also at play. Builders say a shortage of workers already hampers construction that is underway. Supply chain issues and increased demand for building supplies have driven up costs.
The Szanton Company, a Portland-based property developer, constructed a building in Auburn in 2020 at a cost of $140 per square foot. The company’s latest project to go out for bid came in at $280 per square foot, the company’s president, Nathan Szanton, said last week.
In addition to the increased costs, construction projects are taking much longer to complete, often because fewer workers are available for these projects, Szanton said.
Last year’s legislative action laid important groundwork to increase housing availability in Maine. Much more work needs to be done at the local and state levels. More housing, especially more affordable housing, is essential for Maine’s economic future and wellbeing.
