The BDN is exploring Maine’s housing disaster from each attainable angle, from the way it impacts dwelling costs, to what it means for Mainers throughout the state. Learn our ongoing protection right here and fill out this type to inform us what you need to know.
It’s no secret that you just want a wad of cash to purchase a house in Maine, with a scarcity of for-sale properties persevering with to drive up costs regardless of indicators the true property market is cooling.
However simply how excessive are the costs? Within the Portland and South Portland metropolitan space, you must earn a minimum of $130,000 yearly to purchase a house with a median value of $472,790, a examine launched this week by the Joint Heart for Housing Research at Harvard College discovered utilizing April knowledge.
That interprets right into a month-to-month fee of practically $3,400, together with the $2,400 mortgage, plus insurance coverage and property tax. For its knowledge, Harvard assumed a 3.5 % down fee on a 30-year fastened mortgage with no factors and a 4.98 % rate of interest.
That’s the highest revenue required to purchase housing within the state. Whereas it’s decrease than the $181,200 wanted in higher Boston, Cambridge and Newton, it nonetheless is way increased than different areas of Maine.
Those that need to purchase within the Lewiston-Auburn metropolitan space must make $78,800 to afford the median dwelling priced at $286,609. The month-to-month fee would whole $2,036.
To afford a median-priced dwelling of $266,850 within the Augusta-Waterville micropolitan space, the customer would wish to make $73,400, with a month-to-month fee of $1,380.
The Bangor metropolitan space was essentially the most reasonably priced, requiring an revenue of $66,160 to purchase a $240,620 median-priced dwelling. The month-to-month fee would whole $1,710.
Housing costs are rising quicker than wages. The imply annual wage for all occupations throughout Maine was $53,230 in 2021, in line with state labor knowledge. Nevertheless, administration occupations averaged $102,360 whereas CEOs averaged virtually $150,000.
Common wages for all occupations within the Portland and South Portland metropolitan space had been $57,000, in line with state knowledge. These within the Bangor metropolitan space had been $52,920 and within the Lewiston-Auburn space, $50,640.
Dwelling value appreciation nationwide was 20.6 % in March 2022, the Harvard examine stated, topping the earlier excessive of 20 % in August 2021 and marking the most important bounce in three many years of recordkeeping.
It concluded by saying private and non-private insurance policies must concentrate on making reasonably priced housing accessible to lower- and middle-class individuals.