Housing in Maine is among the most expensive in the country, according to a new report shared by personal finance website WalletHub.
Mainers were found to pay the third largest share of their income in rent each month — a whopping 52.72 percent — surpassed only by New York and Hawaii.
Homeowners in Maine were found to fare comparatively better, although the state still ranked in the bottom half, coming in 15th-worst with an average cost of 26.60 percent of income.
To calculate these rankings and figures, mortgage and rent payments were taken into consideration alongside home energy costs.
Click Here to Read the Full Report
A study published this past summer by the National Low Income Housing Coalition this past summer found that 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.
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.
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.
[RELATED: Average Mainer Needs to Earn $60k Annually to Afford a 2-Bedroom Apartment, Study Shows]
Maine’s rating for housing affordability came 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 30 percent of one’s income.
Click Here to Read the Full Results of the Study
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 highlighting some policies that offer 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 took 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.
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.
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.
