Bangor rental rates are accelerating faster than those in other Maine cities

A study commissioned by the city of Bangor reveals that rent prices are accelerating faster than those in Portland, Lewiston, Augusta and Brewer. Bangor doesn’t have the highest rents in Maine, but officials said they are too high for the level of incomes in the area.

Anne Krieg, Bangor Community and Economic Development Director estimated the city needs about 1800 additional rental units for people who make below $35,000 a year.

Krieg said one way to bring down rents is to help landlords offset the costs of renovating heating or sprinkler systems, or other improvements.

“One thing that we are looking at doing is get grant funds to create grants for landlords so they can reduce their operating and construction costs,” Krieg said.

Krieg said residents who make 80-120% of the city’s median income are priced out of market rate housing but earn too much to qualify for rent subsidies.

She said the city is offering an eleven-acre municipally-owned site to developers to encourage them to build more affordable housing.

“If we can take out some of the development costs such as land acquisition, we can get in turn some rents and condos that people can purchase that are in that 80-120% median income,” she said.

Krieg said the city has changed its zoning ordinances to reduce lot sizes and allow accessory dwelling units that have resulted in up to 15 new units in Bangor since 2019.