Maine housing officials say that affordable housing production has ramped up in recent years — but construction cost increases have slowed that progress.
Greg Payne, the senior housing advisor to Gov. Janet Mills, told the Legislature's housing committee on Tuesday that the state had invested $285 million in affordable housing since 2019.
That's led to a substantial increase in production, though still below a goal of 1,000 new units a year.
"Whereas before, we were doing 230 units a year, I think we're looking more like 500, 600 a year, despite the increase in per-unit development cost," Payne told the committee. "I'd say if it wasn't for that, I think we'd be right up at where our goal is."
Payne pegs those cost increases to supply and labor challenges.
The state is set to release a report within the next few weeks looking at how much housing needs to be created at both a regional and statewide level.
