Maine Home Selling

While more homes are being listed on the Maine property market, inventory remains low, and prices continue to rise. The median home price in the Pine Tree State jumped 9.3% year over year to an all-time high of $427,100, just shy of the roughly $440,000 national median.

Across the state, homes tend to sell in about 35-45 days. During the off-season (November-February), homes spend significantly more days on market (DOM), with demand typically peaking in June or July. Maine also has a highly localized real estate market, with certain cities, like Portland and South Portland, seeing stronger demand and faster sales.

Despite significantly more homes for sale in the state (+26% year over year in October 2025), demand continues to outpace available supply. Though the current average of 3 months of supply is an improvement compared with previous lows, Maine's housing market still favors sellers.

Property tax rates in Maine are around 1.10%, ranking it 18th highest in the country. While this rate exceeds the national average of around 0.90%, it remains considerably more attractive than neighboring New Hampshire's effective average of around 1.77%.

Foreclosures in Maine also exceed the national average, occurring at a rate of 1 in every 4,218 housing units (as of October 2025). Counties where foreclosures are more common include Sagadahoc, Waldo, and Penobscot, indicating economic instability and the potential for more housing market volatility.

Maine's strong tourist appeal and growing economy make it a promising place for real estate investment, with potential for high return on investment (ROI). With a mix of local economic growth, coastal views, urban centers, and natural beauty, each municipality and neighborhood in the Pine Tree State offers varying attractions for individuals looking to invest in the state's housing market.

One of the key attractions for real estate development and investment in Maine is the state's mandate requiring every municipality to permit at least one accessory dwelling unit (ADU) on single-family lots and, in other places, 2-4 units per lot. While each Maine locality has unique investment potential, the following areas in the state may be uniquely positioned for residential property development and solid ROI prospects:

• Portland: Portland has a strong renter pool (short- and long-term) due to its inclusionary zoning and diverse economy, with growing sectors like education, tourism, and healthcare. Its steady population growth and strong rental demand make it appealing for real estate investors looking to generate consistent rental income.

• Bangor: This city has a clear focus on downtown infill and other efforts aimed at adding home supply to meet housing needs and reduce market barriers for diverse housing development types.

• Augusta: As the state capital, Augusta is recognized as an attractive place for real estate investment, particularly long-term rental properties. Rental demand remains high in the city thanks to a stable job market and diverse local economy, supported by industries such as government, healthcare, and education.

• Biddeford: The Pepperell Mill redevelopment transformed the city's downtown into a thriving mixed-use center, making it appealing to real estate developers and investors. The city typically sees steady tenant demand and strong property appreciation thanks to its local economy and vibrant arts and culture scene.

• Saco: Home to about 20,000 residents, this town's consistent population growth over the last decade makes the local real estate market attractive for investors focused on appreciation. In addition, its waterfront location along the Saco River and Saco Bay provides added value relative to landlocked cities.

• Lewiston: With a more affordable entry point and diverse local economy, Lewiston attracts individuals looking to invest with less initial capital.

• Kennebunkport: Known for its historical significance and high annual tourist turnover, this village is a prime location for investors seeking strong rental incomes.

• Old Orchard Beach: Properties in this area may offer the potential to appreciate quickly while generating solid cash flows. In addition, the town sees strong demand for short-term rentals, especially during the spring and summer.

• Kittery: Lately, property values have appreciated significantly in Kittery, offering the potential for an attractive ROI. The town's proximity to the southern coast and Portsmouth Naval Shipyard also creates both short- and long-term rental demand for buy-and-hold investors.

Although market trends may cause fluctuations, it takes around 35-45 days to sell a typical home in Maine. Some factors impacting home sale timelines in the state include the location of a property, its condition, the time of the year, the type of property, and supply and demand in the local market.

Generally, homes that tend to sell faster in Maine have one or more of the following features or characteristics:

To ensure smooth sales, avoid legal issues, and maximize ROI in Maine's real estate market, you need to be aware of local zoning laws, permits, and key regulatory requirements. While zoning laws control how properties in a locality may be used, permits are typically required for renovations, new construction, and any changes in a building's use.

When shopping for a home in Maine, buyers may request a Certificate of Compliance (COC) to confirm that a property complies with all land use laws and local zoning rules. It's typically issued after an inspection and indicates that a property is safe and up to code. As a result, for sellers without a COC, home sales may be slower or more difficult.

Maine is generally categorized into the following areas in relation to zoning laws, permitting, and local regulatory requirements:

• Areas with strict zoning laws: These areas typically restrict lot size, density, or multifamily development and often enforce relatively rigid land-use codes. ROI in these municipalities often relies on longer-term property appreciation rather than rapid multifamily redevelopment.

  In Maine, these areas include Falmouth, where large minimum lot sizes are enforced in suburban neighborhoods, and Cape Elizabeth, where there are strict limits on density, particularly near coastal areas. In Yarmouth, there's limited multifamily zoning and careful growth management. When investing in any of Maine's stricter regulatory environments, you may be faced with fewer exit strategies unless you pursue zoning variances.

• Areas with less bureaucratic zoning laws: These municipalities are known for their flexible ordinances, which permit ADUs and more multiunit housing by-right permissions. They're the most developer-friendly areas, especially for adaptive reuse, accessory units, and multifamily development, and are the best for ground-up developers and cash-flow investors.

  Maine municipalities with less bureaucratic zoning laws include Bangor, with simplified permitting for multifamily developments, and Lewiston, which encourages infill development and higher density in urban neighborhoods. Similarly, while zoning is streamlined to support infill housing in Wesbrook, there are aggressive pro-housing zoning reforms in Auburn, including missing-middle housing by right.

• Areas requiring a special permit: In Maine, these areas are generally suitable for developers and investors who are able to successfully navigate community input processes. Projects here often require a conditional use permit, which demands public hearings. While the process of getting approvals may lengthen timelines, it usually increases project value, opening opportunities for patient developers.

  These areas include Sanford, where mixed-use proposals and larger multifamily developments typically require board review, and South Portland, where several conditional uses, like large multifamily near residential zones, require Zoning Board hearings. Furthermore, special approvals must be obtained in Brunswick for conversions or certain higher-density proposals near Brunswick Landing.

• Areas requiring a Certificate of Occupancy (CO) before legal occupation: A CO typically provides buyers with protection by certifying code compliance before taking ownership of a property. While it's technically required before legal occupation in most municipalities in Maine, some areas enforce it more rigidly than others. Such places include Bangor, which mandates a CO before occupancy or rental registration, and Portland, where a CO is strictly required for all major rehabs and new builds. Similarly, CO enforcement is consistent in Westbrook, especially for new apartment complexes, while in Lewiston, new residential and rental conversions require a CO.

• Areas requiring approval of a historic commission: Certain buildings and homes located in designated districts in these areas generally require commission approval for material changes, exterior work, or redevelopment. For instance, material and design approvals are needed in historic districts in York Village, while all changes in the West End, downtown, and Munjoy Hill districts of Portland are overseen by the Historic Preservation Board.

  Similarly, all exterior work in the historic downtown of Rockland must be reviewed by the Historic Preservation Commission. While there are notable barriers to development in these areas (projects typically move slowly and are more costly), they also hold the potential for yielding premium rental and resale values due to preserved charm and limited inventory.

Staying compliant with local regulatory requirements helps facilitate smooth real estate transactions, minimize risks, and prevent legal issues or costly delays, while also maximizing property value.

To successfully navigate Maine's real estate regulations, it's essential to understand the prevailing regulatory climates in each area, which are generally categorized as follows:

Development-Friendly Areas

These areas comply with Maine's LD 2003 and have streamlined zoning that encourages housing growth. As a developer, you may leverage streamlined permitting (remember to consider parking rules and density caps), while as a seller, you should consider emphasizing the potential for ADUs and multiunit redevelopment when marketing. Areas with development-friendly regulatory climates in Maine include the following:

• Biddeford: Pro-housing zoning supports mill district redevelopment.
• Lewiston: Offers affordable entry costs and encourages multifamily and infill redevelopment.
• Westbrook: Zoning supports the Rock Row mixed-use development and infill housing.
• Bangor: Simplified permitting focuses on promoting multifamily housing supply in its downtown.
• Auburn: Zoning reforms in this city generally permit missing-middle housing with fewer variances.

Moderately Regulated Areas

While development or growth is possible and encouraged in these areas, many projects still require board review. Properties with zoning compliance or pre-approved permits in these places typically have premium values. Investors can also build community support by adhering to town/city master plans. In addition, you should plan for public hearing timelines, which may extend investment holding times. Municipalities where regulatory climates are moderately regulated in Maine include the following:

• Sanford: Zoning Board approval is required for mixed-use or larger multifamily projects.
• Waterville: Encourages downtown revitalization, but projects near historic districts are typically carefully reviewed by the Historic Preservation Commission.
• Augusta: While the city adopts board reviews for larger projects, it largely supports and encourages housing growth.
• South Portland: Though some by-right projects exist in South Portland, conditional use permits are generally the order of the day.

Highly Restrictive or Bureaucratic Areas

Multiple layers of approval are usually required in these areas, which often resist high-density housing. In addition, they're known for enforcing large lot minimums, strict zoning, and/or historic preservation overlays. Developers in these areas should expect conservation reviews, long approval windows, and variances. For sellers, marketing properties as luxury or legacy homes may be an effective strategy. In Maine, these areas include the following:

• York: There is strict coastal and historic zone oversight in this town.
• Falmouth: Residential zoning is dominated by large lot requirements.
• Cape Elizabeth: There are tight density limits and restrictions on the development of shorelines.
• Kennebunkport: Waterfront and village properties often require design and historic approvals.
• Yarmouth: This town has strong controls on multifamily growth and subdivision.

Regulatory Climate Factors

The real estate industry is generally faced with increasing regulations, including stricter building standards, which determine how difficult or easy it is to develop new buildings, renovate existing property, and flip a property. Like everywhere else, the regulatory climate in Maine differs by location and can impact home values, supply, and demand.

The table below lists the principal regulatory climate factors in Maine, their impact on real estate development, and a few of the local areas where they're commonly found:

*NIMBYism - Not in My Backyard

Investors looking to maximize profit from flipping and reselling residential property in Maine must study current market trends, acquire properties strategically, and focus on renovations that attract potential buyers. House flipping is one of the most common investment strategies, and consists of investors purchasing undervalued residential properties, renovating them, and reselling them for a profit. While traditional house flipping works in many markets, there are several other flipping and resale strategies investors can use to potentially maximize ROI.

To attract buyers and maximize the value of real estate in Maine, you must learn how to price your listing in a way that balances value with local market conditions. Typically, working closely with a local appraiser or real estate agent to analyze listed homes and recently sold comps in a market within the last 90 days will help determine the appropriate list price for your home.

Some pricing strategies to consider when listing a home on Maine's property market are listed below:

The table below highlights the relevant strategies you can adopt to attract buyers and help maximize your home's sale price in Maine, depending on the prevailing market conditions within each local housing market:

Maine's local property markets are influenced by various factors, which generally determine or drive demand, supply, property values, and investment trends. A clear understanding of such factors may help home sellers, buyers, investors, and developers make informed financial decisions and adapt to market changes.

The major factors shaping Maine's local housing markets include the following:

Economic Factors

Economic factors like income levels, employment, and local industry shifts typically influence rents, demand, property appreciation, and pricing in Maine. For instance, redevelopment and a creative economy are fueling housing demand in Biddeford, while affordability and manufacturing revival are attracting real estate investments in Lewiston. Similarly, rental demand is high in Portland, where tech, finance, and healthcare employers continue to attract many young professionals.

Demographic and Social Factors

The state's housing market is greatly influenced by demographic and social factors like population shifts, migration trends, and increased household formation, which generally fuel housing demand. For instance, in Orono, the student population from the University of Maine drives rental demand and small multifamily markets. Furthermore, Bar Harbor typically attracts retirees and seasonal residents seeking vacation homes, while the stable population of retirees and government employees in Augusta supports consistent housing demand in the capital.

Regulatory and Legal Framework

Housing development is often constrained in some parts of Maine due to restrictive zoning and cumbersome approval processes. However, in other areas, housing growth is encouraged by zoning reforms and supportive local governments. For instance, while affordable, transitional zoning supports investor activity in Sanford, strict zoning, which typically preserves exclusivity, limits supply in Cape Elizabeth.

Taxation and Fiscal Policy

State policies, property taxes, and government incentives generally affect housing affordability and investor appetite in different parts of Maine. For instance, lower property taxes in Augusta and Lewiston appeal to budget-conscious buyers, first-time owners, and investors.

Infrastructure and Development Trends

Infrastructure upgrades, such as new construction, transportation, amenities, broadband, and urban renewal projects, typically boost property values in Maine and attract development. For instance, the major downtown redevelopment in Westbrook is increasing residential growth, while waterfront and cultural investments in Rockland have made the city a growing housing hub.

While the Maine housing market is edging toward a balanced market, it continues to favor sellers with just 3 months of supply. Though the number of homes for sale and the pace of new construction in the state increased in 2025, the housing deficit remains significant due to strong buyer demand. Nevertheless, there are plenty of opportunities for real estate investors seeking appreciation-driven returns and short- and long-term rental income. Some of the best places in the state for real estate investment include Biddeford, Augusta, Portland, and Bangor. Investors and developers who align with Maine LD 2003 Guidance and target growing markets with job or amenity anchors may be able to tap into meaningful absorption and ROI potential. The major factors driving the current housing market trends in the state include economic factors, regulatory factors, social shifts, and infrastructure developments.