Learn more about the housing market in Maine

Every state is unique when it comes to the real estate market. That’s why it’s critical to understand the market you live or operate in. Whether you’re renting, buying, or selling, it will impact many aspects of your life. In this article, we'll provide key data and insights about the Maine housing market, including median sales prices, market trends, and housing inventory. 

Key Takeaways

1. Steady buyer demand continues to support home prices across much of Maine.
2. Housing inventory remains limited, despite gradual gains in new construction.
3. Development activity is improving but still lags behind long-term housing needs.
4. Interest rates and broader economic conditions will strongly influence affordability and market activity in 2026.

Maine Housing Market Overview 

Home to rugged coastlines, iconic lighthouses, and expansive national parks, the Pine Tree State is widely known for its natural beauty. Outdoor recreation remains a major draw, with hiking, camping, skiing, and coastal activities popular among both residents and visitors. Maine is also attractive for its relatively lower cost of living and high quality of life. 

Maine’s economy and culture have long been rooted in the responsible use of natural resources, including fishing, farming, forestry, and shipbuilding. Forest products have supported the state’s economy for centuries, while its aquaculture industry remains a defining feature. Looking ahead to 2026, Maine is continuing to invest in emerging and evolving industries such as mass timber construction, sustainable packaging, and bio-based manufacturing, including biotechnology, medical research, and life sciences. These growing sectors are helping diversify the economy while supporting long-term sustainability and innovation.

When it comes to the housing market, there’s a similar story of strength, stability, and resilience. Real Estate, Rental, and Leasing was the highest contributing sector to Maine’s GDP in 2026 with a growth rate of 6.1%. Maine is currently experiencing a competitive seller’s market. Interest rates are still at record highs, and although new homes are on the way, inventory is still not sufficient for the many people who want to buy a home. The surge in demand from home buyers, driven by out-of-state buyers and residents shifting to remote work, has intensified the market's competitiveness. 

Despite these challenges for buyers, however, the current housing market Maine maintains is a promising one for homeowners and investors in the future. Appreciation, home prices, and property values in Maine are rising. Maine is also a fantastic state for short-term rentals and vacation properties, especially near the state’s many resorts, coasts, and national or state parks. The housing supply impacts buyer options and market dynamics, with the number of homes for sale affecting how quickly properties are sold. Real estate has a promising path in Maine, even among nationwide housing market uncertainties. 

Maine Housing Market Trends 

To understand the Maine real estate market, it’s important to keep up with trends. Let’s look at some key ones in Maine: 

Note: These statistics are based on Redfin’s monthly housing data from November 2025. 

Median Home Price 

The median home sale price in Maine as of November 2025 is $397,800, according to Redfin’s monthly housing data. This is an increase of 5.5% compared to November of last year. However, keep in mind that Maine’s housing inventory is diverse, including both more affordable and luxury options. Homes in Cumberland Center, for example, sell for a median price of $605,000, up 1.8% since last year. There is no indication of home prices dropping in the Maine housing market. 

Number of Homes Sold in November 2025 

1,453 homes sold in Maine in November of 2025. This represents a decrease of over 11%, however, compared to November of 2024.

Keep in mind that this number might be inflated compared to other months since nationally speaking, sales usually peak during the spring and summer months and slow in the winter. In fact, the National Association of Realtors (NAR) predicts that in February and March alone, sales activity increases by as much as 34% and prices by 3%. 

Median Days on Market (DOM) 

Days on market (DOM) is a measure of the average length of time a home remains listed on the market before being put under contract. A lower DOM signals a highly competitive seller’s market with more pressure on buyers to make higher offers and remove contingencies. A higher DOM signals a buyer's market as sales are slower and sellers have less leverage. 

The current median days on market (DOM) in Maine is 50 days. This means on average, homes in Maine sell after over a month, indicating movement toward a more balanced market. 

New Supply Statistics 

Residential construction in Maine has been gradually increasing as many projects that were delayed during the pandemic resumed, and recent data show municipalities continue to issue building permits for new homes and housing units. Maine’s housing production still falls short of statewide needs, as state reports estimate the state must build tens of thousands more homes by 2030 to address long-standing shortages and meet future demand, but ongoing development and zoning changes have helped expand the housing inventory. Greater availability of permitted units may help moderate price growth and slowly ease pressure on what has been a tight seller’s market.

Property Tax Rate 

The average property tax rate in Maine is 1.24%, according to Rocket Mortgage. This places Maine's average property tax rate as the 16th highest in the U.S. However, keep in mind that property taxes vary widely depending on the specific county of Maine and the value of the home. 

Foreclosure Rate in October of 2025 

In October of 2025, 1 in every 4,218 homes experienced a foreclosure filing (according to recent data from ATTOM). Based on this data, Maine's foreclosure rate ranks 17th in the country, but is still lower overall compared to higher states.

Hottest Local Markets in Maine 

The top cities in Maine with the fastest growing sales price according to Redfin are Augusta, South Portland, and Portland. 

1. Augusta

Located on the banks of the Kennebec River, the capital of Maine offers many opportunities for homeowners and real estate investors. The city’s downtown has been the target of many revitalization efforts over the last decade. The median sale price in Augusta as of November 2025 is $246,000, down more than 15% since November of 2024. Additionally, 3% of homes sell below list price, showing signs of a slowing market in the state. 

2. South Portland

Redfin ranks South Portland, Maine, as “Very Competitive,” with homes selling in an average of just 28 days. The median sale price in South Portland is equally high, at $442,000 as of November 2025. The town is known and visited for the scenic Portland Harbor and the historic Greenbelt Walkway. It’s also a center of retail and industry in Maine. 

3. Portland

Portland, ME has emerged as one of the top luxury markets in the U.S. Homes here sell at a whopping median price of $660,000, making Portland home to countless high-end properties and luxury living in 2026.

Situated in a coastal pocket in the Northeast, Portland’s proximity and easy transit to Boston makes it highly influenced by other areas of the New England economy. Its diverse industries make it a trade and culture hub in the Northeast as well. But homes in Portland sell in an average of nine days, so interested investors will need to act quickly to carve out space in this highly competitive market. 

Economic Factors Impacting the Maine Housing Market 

A holistic view of Maine’s housing market requires a basic understanding of the main economic drivers affecting the market, including the challenges posed by mortgage interest rates for would-be homeowners. Additionally, fluctuations in property prices significantly impact market dynamics, influencing both buyer behavior and overall housing demand. Let’s look at a few critical drivers below: 

Mortgage Rates 

High mortgage rates are a continuing challenge for would-be homeowners in the U.S. Maine’s average rates for 30-year mortgages in November of 2025 are 6.24%, around the same as the current national average. Higher interest rates deter borrowing and discourage those who already own homes from putting their homes on the market. Many homeowners report feeling “locked in” to their current homes, as it is unlikely they will secure a mortgage rate as low as their current one on their next property. Prospective buyers in Maine should monitor mortgage rates in the coming months for a better understanding of how they impact the housing market. 

Inflation and Cost of Living 

Mortgage rates are tied to inflation, another massive contributing factor to the affordability of housing and the state of housing markets in general. Inflation has increased the cost of living for many across the U.S., including in Maine. This means fewer people can truly afford to limit housing costs to less than 30% of their monthly income. 

Population Changes and Demographics 

Population, migration, employment, and other demographic factors can each influence the housing market. Increased migration can lead to inflated prices and rents as demand increases, while slowing population growth can lead to more affordability for residents. 

Maine Housing Market Forecast 

Maine home prices are expected to continue rising through 2026, largely because low inventory still cannot meet steady buyer demand. Limited housing supply and slower new construction keep upward pressure on prices, especially for entry-level homes. Real estate agents remain crucial in navigating quick sales and competitive conditions. While some buyers hope for lower mortgage rates, sellers and investors are likely to continue benefiting from ongoing price appreciation and Maine’s strong economic fundamentals.

Likelihood of Maine Housing Market Crash  

A Maine housing market crash is unlikely in 2026. Most experts and analysts believe that Main’s strong industries, booming luxury housing market, and vibrant attractions will keep both the state’s economy and housing market stable this year.  

Forecast for The U.S. Housing Market 

Now that we’ve looked at Maine’s housing market, let’s zoom out a little bit. What about the U.S. housing market? What do you need to keep an eye on in the coming years? 

The United States' current median existing-home sale price is around $415,200 per the National Association of Realtors. The inventory, though, remains low. A balanced market typically has a 5-to-6-month supply, but the current figure is 3 months, keeping conditions constrained.

We’re currently in a seller’s market with buyers looking at continued rising house prices—although they are rising at a slower pace compared to previous years.. The same trend can be seen with renters. Housing continues to appreciate, in general.

Dr. Lawrence Yun, Chief Economist and Senior Vice President of Research, National Association of Realtors, believes the housing market will appreciate 15 to 25% over the next five years. He thinks that the seller’s market will continue because housing inventory will remain low. In 2026, he predicts that existing home sales will rise an additional 13%. Yun expects mortgage rates to stabilize at the lower end of the current 6-7% range through 2025 and 2026 as the Federal Reserve continues gradual rate cuts. There's an anticipation of a more balanced market in the coming years, with moderate price growth and a greater amount of Americans re-entering the market.

Hybrid work also impacts the housing market. This shift in work culture means suburbia will continue to grow. States like Texas, the Carolinas, Tennessee, and Florida should see continual growth.

The number of single-family homes built decreased over the past couple years while the number of multi-family homes increased due to lower prices and a demand for affordable housing. Year-to-date single-family housing starts were down about 7.1% in 2025, whereas starts for buildings with five or more units were up roughly 14.5% Higher mortgage rates and inflation (affecting price of materials) were the main causes.

Lower income households continue to struggle in the current housing market. This trend appears likely to continue into the foreseeable future. According to the National Association of Home Builders, approximately 74.9% of U.S. households were unable to afford a newly built median-priced home in 2025. Without enhanced supply or helpful subsidies, the outlook is that many Americans will still wrestle with housing affordability in the years to come.  

Maine Rental Market 

The rental and homebuying markets remain closely connected in Maine: limited for-sale inventory and rising home prices tend to support continued rental demand, while tight rental markets can make it harder for renters to transition into homeownership. In Maine, average rents have stayed elevated—recent data show typical monthly rents around $1,600 to $1,900 depending on source and location, with higher prices in urban areas like Portland

Rent affordability remains a significant challenge for many Mainers. National studies continue to document that a large share of renters pay more than 30% of their income toward housing, and state-level reports underscore that deeply affordable units are scarce for extremely low-income households. Maine’s rental vacancy rate is relatively low at about 2.9 % which suggests limited slack in the market.

The markets cooled in 2023, though, due to new units and decelerating demand. But a serious problem persists: Rent increases are still outpacing income gains.  

Although housing construction and new rental supply have grown in recent years, production has not fully kept pace with demand, and high costs of building and borrowing continue to put upward pressure on both rents and home prices. As long as supply remains constrained relative to demand and incomes lag behind housing costs, the underlying affordability issues highlighted during the pandemic are likely to persist in Maine’s housing market.

This short summary leads directly into Maine’s current rental market, with current trends from Zillow:

Maine Rental Market Key Trends 

• Median rent: $1,900 

• Month-over-month rent change: $0

• Year-over-year rent change: $0

• Available rentals: 2,370

Conclusion 

The Maine housing market in 2026 continues to be shaped by steady demand, limited inventory, and gradual development gains, making it important for buyers, sellers, and investors to stay informed. Whether you’re planning to purchase or sell property in Maine, broader economic conditions and local market factors will play a key role in decision-making. Trends such as home price movement, housing supply, construction activity, and interest rates are likely to remain central forces influencing Maine’s real estate market in the year ahead.

FAQs

Is Maine still a seller’s market in 2026?

In many areas, yes. Limited inventory and consistent demand continue to favor sellers, though conditions are becoming more balanced in some regions.

Are home prices expected to rise in Maine this year?

Home prices are expected to increase modestly, supported by low supply and steady demand rather than the rapid growth seen in earlier years.

Is now a good time to buy a home in Maine?

It depends on location, budget, and financing. Buyers may still face competition, but slower price growth and potential rate changes could improve affordability for some.

Is housing inventory improving in Maine?

Inventory is gradually increasing as construction picks up, but supply remains tight, especially for affordable and entry-level homes.

How do interest rates affect Maine’s housing market?

Interest rates directly affect affordability and buyer demand. Higher rates can slow activity, while lower rates may increase competition and price pressure.