Maine: An Encyclopedia
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Housing

Chart Home Ownership Maine and USMaine home ownership in 2010 was 73.8%, compared with 66.9% for the U.S. as a whole. It had dropped from 75.3% in 2006, just before the recession in the housing market. In 2000, the U.S. rate was 76.5 and Maine’s was 67.4.  From 1984 throught 2010, Maine’s peak rate of home ownership was 77.4% in 1999, more than 10% above the national rate.

Chart: Increases in Housing Costs 2000-2009As the Maine State Housing Authority’s chart at left indicates, housing costs have been increasing faster than incomes. The vertical axis is an index showing how the values in later years compare to the 2000 values.

The Housing Authority tracks the “affordability” of home ownership by identifying the income needed to purchase a median-priced house in Maine. That is, a house the price of which is in the middle of all houses sold in the state for a given year.

The “affordability index” for a county is simply the median income of the county divided by the income needed to buy a median priced home in that county. The median income means that half the population has incomes hight than the median, and half have incomes lower than the median.

If the median income of a county is more than the income needed to buy, then the index is greater than 1.0.  In 2006 only two counties, Aroostook and Somerset, had indexes above 1.0, meaning more than half their populations could afford a median-priced home.  By 2009, with the drop in housing values, eight of Maine’s sixteen counties were in this position. See how these figures compare to the median value of owner-occupied housing units and vacancy rates.

Map: Affordable Housing Index 2006Map: Affordable Housing Index 2009

Area Year Afford-ability
Index
Median
Home
Price
Median
Income
Income
Needed:
Median
Home
Price to
Afford:
Median
Income
Unable 
Afford 
Home 
Numb
to
Median
Price
-Percent
Maine 2001 0.94 $118,900 $40,862 $43,511 $111,663 286,590 -56.70%
2002 0.89 $133,500 $42,029 $47,302 $118,618 319,824 -60.30%
2003 0.81 $150,000 $41,645 $51,400 $121,532 332,378 -61.70%
2004 0.73 $168,000 $41,929 $57,592 $122,310 357,732 -66.00%
2005 0.70 $184,000 $43,370 $61,648 $129,445 372,491 -68.00%
2006 0.73 $185,000 $44,488 $61,270 $134,329 369,128 -66.50%
2007 0.74 $185,900 $45,438 $61,568 $137,198 369,172 -65.70%
2008 0.79 $17,800 $46,321 $58,951 $139,864 350,239 62.60%
2009 0.90 $158,000 $47,445 $52,937 $141,608 313,046 -56.40%
Counties 2006
Androscoggin 2006 0.77 $155,000 $42,126 $54,473 $119,865 28,466 -62.90%
Aroostook 2006 1.29 $76,175 $34,151 $26,496 $98,183 12,424 -39.40%
Cumberland 2006 0.68 $238,250 $53,255 $78,225 $162,200 81,290 -71.30%
Franklin 2006 0.89 $124,750 $36,766 $41,465 $110,614 6,948 -56.30%
Hancock 2006 0.69 $195,000 $42,675 $62,178 $133,836 16,143 -68.20%
Kennebec 2006 0.90 $139,000 $41,634 $46,402 $124,718 28,361 -55.40%
Knox 2006 0.71 $200,000 $45,623 $63,916 $142,760 12,018 -67.90%
Lincoln 2006 0.69 $202,233 $44,566 $64,810 $139,063 10,740 -69.20%
Oxford 2006 0.88 $135,000 $39,445 $44,733 $119,040 13,515 -56.20%
Penobscot 2006 0.89 $134,000 $40,188 $45,133 $119,321 34,137 -55.80%
Piscataquis 2006 0.92 $108,667 $32,553 $35,555 $99,490 4,213 -54.40%
Sagadahoc 2006 0.79 $189,900 $49,278 $62,757 $149,114 9,675 -63.10%
Somerset 2006 1.10 $97,500 $36,025 $32,681 $107,476 9,938 -45.90%
Waldo 2006 0.83 $145,000 $40,773 $48,925 $120,840 9,676 -59.20%
Washington 2006 0.73 $120,000 $29,913 $40,988 $87,576 9,246 -63.90%
York 2006 0.71 $225,000 $51,121 $71,986 $159,786 58,278 -69.70%
Counties 2009
Androscoggin 2009 1.04 $128,000 $45,878 $44,151 $133,008 21,969 -48.30%
Aroostook 2009 1.21 $85,000 $35,785 $29,499 $103,115 13,066 -41.80%
Cumberland 2009 0.82 $210,000 $57,540 $70,058 $172,477 70,806 -61.90%
Franklin 2009 1.00 $115,500 $38,944 $38,897 $115,639 6,283 -50.30%
Hancock 2009 0.85 $164,500 $45,237 $53,074 $140,209 13,721 -58.30%
Kennebec 2009 1.04 $124,900 $44,331 $42,813 $129,329 24,469 -48.70%
Knox 2009 0.84 $175,000 $48,242 $57,774 $146,126 10,540 -59.90%
Lincoln 2009 0.87 $165,000 $46,921 $53,929 $143,558 8,699 -56.90%
Oxford 2009 1.00 $123,500 $41,404 $41,379 $123,573 12,019 -49.70%
Penobscot 2009 1.03 $121,000 $42,300 $41,118 $124,481 30,576 -48.90%
Piscataquis 2009 1.43 $74,250 $35,678 $24,976 $106,066 2,731 -35.90%
Sagadahoc 2009 0.97 $165,000 $53,740 $55,120 $160,868 7,778 -51.60%
Somerset 2009 1.33 $85,900 $38,691 $28,999 $114,611 8,133 -37.00%
Waldo 2009 0.94 $140,000 $43,721 $46,571 $131,432 8,718 -53.30%
Washington 2009 1.13 $82,750 $32,200 $28,486 $93,538 6,399 -44.70%
York 2009 0.90 $184,950 $53,848 $59,900 $166,263 45,893 -55.90%

Sources:

Federal Reserve Bank of St. Louis http://research.stlouisfed.org/fred2/data/MEHOWN.txt (accessed August 27, 2011)

Maine State Housing Authority. http://www.mainehousing.org/docs/housing-facts—homeownership/2011/04/07/mainehomeownershipfacts2009.pdf (accessed August 27, 2011)

Additional resources

Affordable Housing For The Emerging Maine: The Report Of The Governor’s Task Force On Affordable Housing. Maine. Governor’s Task Force on Affordable Housing. Augusta, Me. The Task Force. 1988.

An Assessment Of Housing Data In Maine. Maine State Housing Authority. Augusta, Me. The Authority 1991.

Maine Interagency Task Force on Homelessness and Housing Opportunities. More…and More Needy: a Study of Maine’s Homeless Population. Augusta, Me.? The Task Force. 1997.

Maine State Housing Authority. http://www.mainehousing.org/

Maine State Housing Authority. Maine Housing Trends, 1950-1980. Augusta, Me. The Authority. 1984?

Maine State Planning Office. Municipal Household Projections 1900-1984. Augusta, Me. The Office.

Statewide Homeless Council and regional homeless councils. Maine’s Plan to End & Prevent Homelessness. Augusta, Me. ? The Council? 2008.

U.S. Census Bureau. http://www.census.gov/hhes/www/housing.html

This entry was posted in Economy, Income and tagged , , , , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *