Housing affordability key issue in Maine’s housing crisis, report shows

A new report is showing some progress when it comes to housing in Maine, but affordability continues to remain a key challenge.

According to a report by MaineHousing, the income needed to afford a median priced home in the state has increased 187 percent between 2015 and 2024.

In that same period, the state’s median income only went up 44 percent.

The rental market has not fared better, as it is affected by the dramatically increased cost of real estate across Maine, according to the report.

Despite MaineHousing’s record success in 2025 with its first-time homebuyer program, the demand from homebuyers continues to outstrip the supply of homes for sale.

While year-over-year price increases were lower than in the recent past, the supply pressure is not likely to ease meaningfully until interest rates tick down more.

“Maine, a state famous for natural beauty and quality of life, has become an attractive location for telecommuters and retirees who often have larger home-buying budgets than Mainers,” MaineHousing said in the report.

In a look at the state’s homelessness crisis, the report suggests underfunding at homeless service centers is leading to skewed data.

According to MaineHousing, housing production is one key to solving these problems.

“MaineHousing’s affordable housing production remains well above historical averages, with 755 low and middle-income units coming online in 2025, and a record future production pipeline extending through the next few years,” MaineHousing said in the report.

While affordable housing production is increasing, unpredictable support at the federal and state levels and high construction costs could still bring that increase to a halt in future years.

Moving into 2026, Maine shows evidence of progress on several fronts of the housing crisis, but there is still much work to be done.