Housing
This section of the BDN aims to help readers understand Maine’s housing crisis, the volatile real estate market and the public policy behind them. Read more Housing coverage here.
The typical home in Maine’s largest city costs nearly $300,000 more than it would have a decade ago, a new study revealed.
Median home prices in Portland surged from $263,000 to $558,000 over the past 10 years, according to an analysis of nationwide real estate data from Construction Coverage. That’s a 112% spike in the last decade, earning the city the 85th spot among all small U.S. cities ranked by housing price growth.
Meanwhile, the median Maine home cost about $193,000 in 2016 and $407,000 in 2026. That 111% growth makes Maine the state with the third highest real estate price jump over the last decade.
The report reveals that Maine’s housing has not only become unaffordable to most people in the state, but that Mainers are feeling the pressure of rising home prices more than almost every other state while wages have struggled to keep up. Nationwide, home values jumped more than 81% in the last decade.
The report includes data from Zillow, the U.S. Census Bureau and the Department of Housing and Urban Development.
While median housing prices across the state rose 110% over the last 10 years, median household income rose by 53%. It shows that many Mainers aren’t able to afford the rising costs.
The Maine Housing Outlook Report, released in January by MaineHousing, noted housing prices outpacing wages as an “ongoing concern.”
“In 2015, the median income in Maine exceeded by 21% what was needed to afford the median home price in the state. In other words, an average earner could afford an average home,” the report stated. “This is no longer the case.”
Only Idaho and New Hampshire have seen housing prices grow more than Maine, according to the analysis.
Idaho saw the highest jump, as median property values rose 137% to surpass $473,000 this year when the same home there would’ve cost just under $200,000 in 2016.
In New Hampshire, median home prices rose more than $270,000 over the last 10 years to $507,000 this year — a 114% spike.
Meanwhile, median household income in Idaho and New Hampshire climbed by 64% and 50%, respectively, during the same period.