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.
Maine’s largest city has one of the tightest rental markets in the country alongside cities such as New York, San Francisco and Honolulu, according to new research from Apartments.com.
Portland ranked 10th in a list of the top 10 U.S. cities where rental housing is most expensive and competitive, according to new data from Apartments.com, a multifamily rental listing network.
The median monthly rent for a one-bedroom unit in Portland sat at $1,922 this summer, and prices in the city rose more than 2.5% since last year, according to the website. This means renters will want to earn more than $6,200 each month, or $74,500 annually, to live there comfortably.
Furthermore, the city had a 4.4% vacancy rate, which means not many apartments are available at any given time. When this happens, prospective tenants are often competing against others for units. This gives landlords leverage to raise prices, according to the study.
The new data further illustrates something Mainers have known for years — rental units in the greater Portland area are exceptionally expensive and difficult to come by. This puts financial pressure on the thousands of people who need or want to live in the city, especially at a time when the cost to buy a home in Maine has remained high since the pandemic.
“Limited housing stock and growing popularity as a lifestyle destination keep vacancy low and rents firm,” the website noted about Portland in the study. “Maine’s largest city competes with metros many times its size, a sign that desirability drives tightness.”
Maine’s largest city ranked right behind Milwaukee and Chicago, which were 8th and 9th, respectively. Meanwhile, San Francisco ranked first, followed by San Jose and New York.
The rankings are based on multifamily, one-bedroom rental data from this summer and the markets were scored using a weighted index combining vacancy rate and trailing 12-month asking-rent growth. The study was also limited to metropolitan areas with a population above roughly 500,000.
The research also notes the cost of living in Portland is 14% higher than the national average. That means that residents can expect to pay more for necessities such as groceries, utilities and transportation in addition to high housing costs.
For those looking for a leg up when looking for an apartment in a competitive market, Apartments.com recommended tenants apply early, get pre-qualified and have necessary documents, such as pay stubs and references, at the ready.
Additionally, applicants who are flexible with when they can move in can also be attractive to property managers, the study noted.
But, Apartments.com cautioned residents to be wary of landlords who put pressure on applicants to pay before they’ve seen a unit or signed a lease, especially if a deal seems too good to be true, as this could be a scam.