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Maine is stifling this homemade solution to the housing crisis

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Maine is stifling this homemade solution to the housing crisis


SOUTH PARIS, Maine — Home builders around Maine routinely turn clients away or add them to yearslong wait lists. This one is begging for more business.

KBS Builders, a manufactured home company, can churn out up to four homes a week in their hulking western Maine headquarters. Their customizable modular homes are built to the same standard as a stick-built home and leave the factory within months to be shipped — 90 percent finished with utilities already installed — to sites all across New England.

But KBS is only operating at 60 percent of that building’s capacity. Five years ago, the company bought a second factory out of bankruptcy that sits empty. While their business is growing, a web of arcane regulatory barriers unique to Maine is holding it back from doing more here.

The state treats manufactured homes as singular products, so they are taxed once on materials and again on installation. They also cannot be sold directly to consumers, so KBS requires middlemen to put them up. Neither the installers nor contractors working on stick-built homes need licenses, but Maine requires licenses to do modular work.

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“I’ve taken all the complexity out of assembling this building, and you’re still requiring someone to have licensure to install this on site. But somebody can go get all the raw parts and build it themselves on site with zero license?” KBS President Thatcher Butcher said. “You tell me where that makes sense.”

A workman guides a wall structure as it’s lifted with a crane at KBS Builders in South Paris. KBS is the largest home manufacturer in Maine and roughly half its output goes to out-of-state customers. Credit: Troy R. Bennett / BDN

New Hampshire and Vermont regulate the industry the same way, although New Hampshire has no sales tax. Licenses are administered by the Maine Manufactured Housing Board, which was established in 1986 to control the quality of mobile homes, which were synonymous with poorly built trailers. Today, a modular home is often more energy efficient than a stick-built home.

Butcher has repeatedly lobbied legislators to provide parity between modular and traditional site-based construction. Lawmakers have been more interested in licensing all contractors like 35 other states do, although a bill on the subject failed last year. Rep. Tiffany Roberts, D-South Berwick, plans to submit a similar measure again this session, she said.

There are only a dozen licensed modular home installers in Maine, Sarah Sturtevant, a research consultant at the Maine Affordable Housing Coalition, found by calling through a list on the Manufactured Housing Board’s website. Those installers are able to charge a premium, edging consumers away from modular construction, Butcher said.

“Our growth in Maine has very much been more limited than in other states, which is unfortunate, because out of all the areas that we service, I think Maine has the most need for housing,” Thatcher said.

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KBS’ expansion would also bring more dependable construction jobs to western Maine, a region that was once home to several manufactured housing builders before the 2008 recession. KBS currently employs 120 people, many of whom said they preferred working for a modular builder to doing site-based work.

“The big advantage for these guys is the inside environment. Working inside, they’re not shivering to death when they’re doing their job, and it makes a big difference,” Gary Cossar, a receiver at KBS’ warehouse, said.

Being able to build homes year round is another perk of building modular in Maine. Sam Hight, who runs the Hight family of car dealerships in Skowhegan and is a developer who has built three rural affordable rental projects with KBS, broke ground on an 18-unit project in Madison in November and had it finished by April.

Using a nail gun, a workman installs exterior trim on a kitchen window at KBS Builders in South Paris. Credit: Troy R. Bennett / BDN

Unlike with stick-built projects he’s done in the past, Hight didn’t have to wait for laborers or subcontractors to become available and travel to his remote site. KBS has a full team including electricians, plumbers and finishers working together in South Paris.

Lawmakers will soon consider promoting modular construction to meet lofty housing goals this upcoming year. Sen. Rick Bennett, R-Oxford, said he is submitting one bill that would remove the double tax and another that will focus on rebuilding the industry in Oxford County with startup capital and incentives. Other lawmakers are interested in focusing on it as well.

“[This] industry presents an opportunity for future growth and innovation in how we get housing built and how we address the underproduction issues that we face, not only here in Maine, but certainly across the country,” House Speaker Ryan Fecteau, D-Biddeford, said.

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Maine

How a data center derailed $240,000 for affordable housing in Wiscasset

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How a data center derailed 0,000 for affordable housing in Wiscasset


On a crisp afternoon in early April 2026, Richard Davis walked to the end of a boat launch on the Back River, a tidal channel that cuts through Midcoast Maine’s rocky coastline. As the tide swept in, Davis, co-founder of a local group called Protect Wiscasset and an area resident, fixed his attention on the […]



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Maine

Mother’s Day brings boom in flower sales across Maine

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Mother’s Day brings boom in flower sales across Maine


It wouldn’t be Mother’s Day without a stop at the florist.

According to Fox Business, about 154 million flowers are sold during the week of Mother’s Day. So it’s safe to say it was a busy day for stores like Estabrook’s Maine Garden Center and Nursery.

Plenty of families stopped by to pick out flowers on Sunday, looking to choose the perfect bouquet for their moms.

“I think Mother’s Day is tradition, you know, and so it’s great to see families here. We have a lot of new families that have come today for the first time with their young children and their mother. Watching the young kids and seeing how excited they are—their eyes light up at all the beautiful flowers,” Tom Estabrook, president of Estabrook’s, said.

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Estabrook says Mother’s Day tends to be a great kickoff to the spring season.



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Maine

Maine Black Bears Swept By UMass Lowell In A Tight 5-4 Finish

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Maine Black Bears Swept By UMass Lowell In A Tight 5-4 Finish


The Maine Baseball Team was swept by UMass Lowell in the weekend series, losing on Sunday 5-4.

UMaine scored 3 runs in the 5th inning and 1 in the 6th inning to lead 4-1, but the Riverhawks scored 2 runs in the 7th and then pushed across the tying and winning runs in the 9th inning for the win.

Thomas Stabley started for Maine and went 6.1 innings on the mound. He allowed 5 hits and 3 runs, striking out and walking 1. Owen Wheeler pitched 1.2 hitless innings striking out 2. Sebastian Holt pitched the 9th and took the loss, allowing 2 hits and 2 runs, the big hit a 2-run homer to Nicholas Solozano, his 2nd of the day.

Hunter St. Denis homered for Maine, a solo shot, his 9th of the season, in the 6th inning.

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Albert De La Rosa was 2-4. JuJu Stevens , Shane Andrus, Quinn Murphy and Chris Bear each singled.

UMass Lowell is 19-27 while Maine is now 17-30.

The Black Bears will host Merrimack on Tuesday, May 12th in a non-conference game at 2 p.m. The game will be broadcast on 92.9 The Ticket with the pregame starting at 1:30 p.m. Maine then closes out the regular season at home with a 3-game America East conference matchup with Albany Thursday- Saturday.

Check out photos from the game

Maine-UMass Lowell Baseball May 10

The Maine Black Bears hosted the UMass Lowell Riverhawks on Sunday, May 10th

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Gallery Credit: Chris Popper





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