Housing is on everyone’s mind – whether it’s availability, affordability, or just finding the right place to call home. Earlier this year the Maine State Housing Authority released its Outlook for 2025, taking a deep dive into the trends shaping our housing market for the year ahead.
Let’s begin with the good news. Inflation and unemployment are stabilizing, and Maine’s economy is expected to see steady growth. Affordable housing production increased, with 775 new units in 2024 and another 1,005 currently under construction. However, the cost of building remains high, and Maine’s affordable housing supply is struggling to keep pace with demand.
Overall construction employment grew by 7% in the past year, and new housing starts in the Northeast surged by 50%. Rental costs are squeezing middle-income families as 53% of renters are now considered cost-burdened, up from just 32% five years ago. Meanwhile, homelessness remains a growing concern. The number of people in shelters or transitional housing increased to over 2,300 in 2024, and the average length of stay in a shelter jumped 38% to 11.6 days.
So. what does all this mean? Maine’s housing market is showing signs of stabilization, but affordability remains a pressing issue, especially as home prices rental rates continue to outpace wages.
For those interested, details are included in the following link: 2025 Maine Housing Report. The complete report is quite comprehensive, but whether looking at the situation at a micro-level or from 30,000 feet, access to housing is one of the biggest issues facing Maine in 2025 and the years ahead.
Download Report: 2025 Maine Housing Outlook
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About the Author: Michael
