The cost of housing in Maine has skyrocketed since the COVID-19 pandemic and doesn’t appear to be coming down.
This has left many Mainers who earn an average wage struggling to or unable to buy a home in the communities where they work.
We took a look at whether the average household could afford to live in some of Maine’s largest cities, as well as some suburbs and idyllic coastal towns across the state.
The formula we used assumes a family looking to buy in an area earns the median income for that region and is trying to buy a property priced at roughly the average cost of a home for the area.
The formula also follows the 28/36 rule, which is financial guidance that states no more than 28 percent of a buyer’s monthly income should go toward housing expenses, and no more than 36 percent should go toward their monthly debt obligations.
This method assumes the buyer will put a 20 percent down payment on the home with a 30-year mortgage at today’s standard interest rate. It also assumes the buyer doesn’t have HOA fees or any regular debt payments or monthly expenses, such as student loans, car payments or child care fees.
The median income and housing price totals were pulled from the U.S. Census Bureau and Zillow, respectively.
Here’s what we found.
Bangor
A family earning slightly more than $58,000, which is the median household income for Bangor, could afford a home priced at roughly $189,500.
That falls more than $100,000 short of the cost of an average home in the Queen City today, which rested at more than $287,000 as of Thursday, according to Zillow. To afford a $287,000 house, which would have a nearly $57,500 down payment, the buyer would need an annual income of at least $88,000.
Meanwhile, a home worth about $189,500 would require a nearly $38,000 down payment followed by $984 monthly mortgage bills for the 30-year life of the agreement.
There are six homes — and a handful of undeveloped lots — for sale in Bangor for less than $189,000 on Zillow as of Thursday, but several of the houses need significant work to be livable.
Portland
Portland’s median household income of roughly $76,000 could afford a home priced at slightly more than $259,000. A property at that price would mean a nearly $52,000 down payment and monthly mortgage fees of $1,345.
That’s less than half of the cost of an average home in Portland today, which is more than $576,000, according to Zillow.
There are only four properties in Portland listed for less than $259,000 on Zillow as of Thursday, and all of them are empty lots.
A household would need an annual income of $170,000 to comfortably afford a $576,000 home in Portland, which would carry a down payment of more than $115,000.
Lewiston
Lewiston’s median household income of $56,558 could afford a home priced at slightly less than $160,000. A down payment for a home at that price would be about $32,000, followed by $830 monthly mortgage payments.
As of Thursday, there were only two homes for sale in Lewiston on Zillow with asking prices less than $160,000, both of which were mobile homes.
The average price of a home in Lewiston has risen to nearly $301,000, according to Zillow. That’s almost double the cost of what a household making the city’s median income can comfortably afford.
A family would need to earn roughly $107,000 annually to buy a $301,000 house with a $60,500 down payment.
Bar Harbor
Bar Harbor’s median household income of roughly $74,400 could afford a home worth roughly $269,500, which would need a down payment of nearly $54,000 and $1,400 monthly mortgage fees.
That’s a fraction of the cost of an average home in Bar Harbor today, which Zillow put at $666,000 as of Thursday.
There wasn’t a single property for sale on Zillow for less than $270,000 on Thursday.
To afford a $666,000 home in Bar Harbor, which would need a down payment of $133,000, a buyer would need to earn at least $184,000 annually.
Camden
A household bringing in just shy of $81,000 annually, which is the median income for Camden, could afford a $291,228 home. A property at that price would need a $58,246 down payment followed by $1,511 monthly mortgage payments.
Zillow has no properties for sale with asking prices under $291,000 as of Thursday. That’s because the cost of an average home in Camden has jumped to more than $667,000, according to Zillow.
To comfortably afford a home at that price, and the $133,500 down payment on it, a family would need to earn at least $185,000 annually.
Presque Isle
Presque Isle’s median household income of $57,400 could afford a home priced at about $181,000, which would carry a $36,286 down payment and $942 monthly mortgage bills.
Zillow places the cost of an average home in Presque Isle now at $176,000. This means Presque Isle is one of the few larger cities in Maine where the median household income is enough to afford a home.
However, that doesn’t mean the city has a large selection of available properties prospective buyers can choose from.
There were only eight homes for sale on Zillow in Presque Isle with asking prices under $181,000, and a few more undeveloped lots available as of Thursday.
Millinocket
Millinocket carries an average household income of just under $43,000, which could afford a $126,700 property. A property at that price would need a down payment of approximately $25,300 and monthly mortgage payments of $658.
There were 14 properties for sale in Millinocket on Zillow, three of which were empty lots, for less than $126,000 as of Thursday.
Zillow places the cost of an average home in Millinocket at roughly $153,000, which is more than what the median household can comfortably afford, but not by much.
If prospective buyers wanted a home priced at $153,000, they would need an annual income of about $52,000 to comfortably afford the mortgage and $30,500 down payment.
Hallowell
A family earning Hallowell’s median household income of $58,800 could afford to buy a home worth $182,300. A property at that price would need a $36,500 down payment and $950 mortgage payments each month.
That falls well below the cost of an average home in Hallowell, which was slightly more than $379,000 as of Thursday, according to Zillow.
There are just two Hallowell properties for sale for less than $182,300 on Zillow and both are undeveloped lots.
In order to comfortably afford a $379,000 home and the nearly $76,000 down payment that comes with it, a household would need to earn at least $123,000 annually.