A new report from MaineHousing points to a few bright spots in the state's efforts to address a persistent housing shortage. But finding an affordable place to rent or own is an ongoing challenge.
The state continues to build more new affordable rental housing than it has historically. About 750 new units came online in 2025, and more than 800 are expected to be completed this year.
Nearly 1,300 loans were issued to first-time homebuyers, a record for the state's program.
But housing, to own or rent, remains unaffordable to many Mainers. Over the last decade, increases in home prices have outpaced wage growth in Maine by more than three-fold. Specifically, the median income in Maine increased by 44% over the last decade, while the income needed to afford a median priced home rose by 187%.
MaineHousing Director Dan Brennan said the data are striking.
"Affordability is the biggest issue — and availability," he said. "So we need to keep producing more. The broader state needs to keep producing policies that will make home renting, home buying more affordable."
Construction and development costs were also up in 2025. It cost, on average, nearly $350,000 to produce one unit last year, though MaineHousing officials say the increases may be leveling off.
The number of people experiencing homelessness in Maine appears to have stabilized somewhat from a high point two to three years ago.
But people are staying longer at homeless shelters throughout the state, according to MaineHousing.
The average length of stay increased in 2025 and is now close to five months.
"People are still staying in shelters longer than we want them to," Brennan said. "It's largely because there isn't available housing stock."
Those who do find permanent housing are also tending to stay longer. Data show about a 10% decrease in the number of people returning to homelessness in 2025.
But Brennan said Maine's networks of shelters and non-profits are worn out after years of underfunding. Nearly all of the state's shelters are facing financial instability, and federal policy uncertainty is another challenge.
