Mainers need to make over $45,000 annually on average to afford a one-bedroom apartment in the state, and they need nearly $60,000 if they want to live in a two-bedroom apartment, according to a recent survey.
This translates to a so-called housing wage of $22.41 per hour for a one-bedroom apartment and $28.42 for a two-bedroom apartment. In other words, someone would need to work two full-time jobs in order to afford a two-bedroom apartment and one-and-a-half full-time jobs to pay for a one-bedroom.
Affordability varies widely, however, from location to location throughout the state, with housing wages spiking to a high of $38 per hour near Portland and York, which equates to roughly $80,000 per year.
These figures come from an annual housing affordability study compiled by the National Low Income Housing Coalition that compared each state’s minimum wage to the cost of renting variously sized apartments.
Based on Maine’s current minimum wage of $14.65 per hour, full-time employees can only afford to pay $762 in rent each month, a price far below the market rate for rental housing in most of the state.
Using the estimated statewide fair market rent of $1,166 for a one-bedroom apartment, full-time employees earning minimum wage would need to work at least 61 hours a week in order to afford rent.
To afford a studio apartment, referred to in the study as a zero-bedroom apartment, minimum wage earners would need to work at least 56 hours per week in order to make enough money to cover the cost of rent.
In comparison to other states throughout the country, Maine’s rating for housing affordability comes in around the middle of the pack, ranking 26th nationwide.
Of the nearly 153,000 Maine households renting their living accommodations, 24 percent make below 30 percent of their area median income, while 39 percent make less than 50 percent of this threshold.
The average hourly wage of renters in Maine was found to be $17.53 per hour. For someone working full time at this rate of pay, an affordable rent would be just $912 per month, well below the average price of rental housing.
To be considered affordable under the terms of this study, rent must be equal to or less than the 30 percent of one’s income.
Click Here to Read the Full Results of the Study
Earlier this year, researchers at a state-based think tank published a report illustrating how Maine’s housing crisis has been exacerbated by some of the policies being pursued at the state and local level, and recognizing this offers potential solutions to remedy it.
In their report — titled Under Construction: Fixing Maine’s Self-Imposed Housing Crisis — James Siodla, Ph.D. of Colby College and Harris Van Pate, J.D of the Maine Policy Institute take a look at the impact of various housing policies that have been implemented throughout the state.
“Maine’s housing crisis is significantly influenced by restrictive land use policies at the local level,” the report states. “By adopting pro-market reforms, Maine municipalities can increase housing availability, improve affordability, and foster economic growth.”
[RELATED: Restrictive Policies Driving Maine’s Housing Crisis: Here’s What We Can We Do About It — 2025 Report]
“State-level policies that reduce regulatory burdens and incentivize development can further support these efforts,” argues the report. “It is crucial to recognize that market forces play a vital role in housing supply and that government intervention should aim to support rather than hinder these forces.”
According to the report, evidence shows “a strong correlation between housing costs and regulations,” as there is a “clear decline” in housing availability when strict local zoning or minimum lot size ordinances are in place.
In 2023, homes in towns with land use zoning were found to be about seven percent more expensive than homes in unzoned towns. Despite the demand for housing continuing to rise statewide, towns with land use zoning have permitted an average of nine fewer units than their unzoned counterparts.
The study goes on to suggest that direct housing policy leadership ought to be primarily concentrated within local governments, as these elected officials are more likely to be responsive to local needs.
They also point out that municipalities have a track record of circumventing state policies when they aren’t on board with them, meaning that “without local government buy-in, state government action will be largely ineffective.”
It is goes on to recommend that municipalities take the lead on housing policy because it would allow for “more diversity and experimentation” to find what is most effective.
This is not to say, however, that the researchers believe the state government has no role to play in addressing Maine’s housing crisis.
Instead of advancing particular housing policies, the report argues that the state government should focus its energy on “reducing the regulatory burden on developers and streamlining the permitting process.”
Disclaimer: The Maine Wire is a project of the Maine Policy Institute.
