MAINE, USA — As developers scramble to meet housing demands in Maine, potential homebuyers continue to struggle to find properties within their budgets.
In the month of September, median home price sales set another record at over $400,000 dollars, according to the Maine Association of Realtors.
Better Homes and Gardens Masiello Group Real Estate Agent Daneel Dafni noted that high prices have made it difficult for everyday Mainers to find affordable housing.
"I work with a lot of people with normal incomes, and it's really challenging," Dafni said, adding that she's had to be creative in helping clients navigate Maine's tight housing market. "When I say affordable housing, I don't mean paying $3,200 a month on a mortgage. Realistically, that's somebody's entire salary for a lot of people here in Maine."
According to MaineHousing, a home is considered to be affordable when a household spends no more than 30 percent of its income on housing-related costs.
However, current home prices coupled with high mortgage interest rates—currently around seven percent—has pushed monthly payments for a typical home above $2,000 with a down payment. This puts homeownership out of reach for many, as the median household income in Maine hovers around $73,000.
Affordable housing developments have popped up across the state of Maine to help alleviate market woes. In Sanford, nine condominiums are planned to be built near the downtown area.
Prices for these units will start at around $200,000 and go as high as $350,000 for a single-family style condo. Each unit is eligible for financing through MaineHousing's Affordable Home Ownership Program. Eligible household incomes are capped at a little more than $100,000.
"We've gone through about a 50-year lull in housing development, so the need is now," real estate broker Todd Landry, founder of Benchmark Real Estate, said. "We need every type of housing, from high-end housing to affordable housing, and what we call the 'missing middle.'"
Developers and those in the industry like Landry hope that building more units across a range of prices will allow for more upward mobility for Maine residents.
"Part of upward mobility in the United States is allowing people to have homeownership," he said.