11-05-2025
EXCLUSIVE Stunning state offering perfect work-life balance sees fierce competition but there's still bargains to be had
Maine 's housing market has been permanently transformed in the five years since COVID-19 first sent urbanites fleeing to its spacious rural neighborhoods.
The pandemic-driven exodus from densely populated areas sent property values skyrocketing between 20 to 40 percent above pre-pandemic levels.
The Kennebec Valley, western Maine ski areas, and suburbs of Lewiston, Auburn and Bangor have experienced the most dramatic spikes.
Celebrities have also snapped up Maine real estate in recent years.
Martha Stewart owns the historic Skylands estate on Mount Desert Island, Maine where she celebrated her 81st birthday.
Built in 1925 for Edsel and Eleanor Ford, the three-story pink granite manor overlooks Seal Harbor.
She told in 2022 about hosting 20 guests at her Skylands property near Acadia National Park, serving local lobster with caviar-filled potatoes paired with her own 19 Crimes Martha's Chard wine.
'The driving factor definitely was Covid,' Dana A. Curtis, Owner and Designated Broker at Maine Homes and Camps, told the
'At the first stages of Covid we had a lot of people from other states flocking to Maine as they felt it was one of the safest states in the nation.'
Curtis explained that Maine's vast, sparsely populated landscape became a major selling point.
'Having such a large state with a minimal population compared to other states was definitely a factor,' Curtis said. 'People in New York or around Boston realize that they could sell their current home and move to Maine and use that equity to purchase a home outright.'
The shift to remote allowed urban professionals to relocate while maintaining their high-paying jobs.
This ended up being a devastating combination for local first-time buyers.
Other Hollywood A-listers like John Travolta also live in the state.
Although Travolta list his Maine mansion for $5 million after owning it for 30 years in 2021, he eventually took it off the market in 2023.
The 72-year-old actor purchased the property with his late wife Kelly Preston in 1991, the same year they married. Preston died in July at 57 after battling breast cancer.
The 10,830-square-foot home sits on Islesboro island with 20 bedrooms, 7.5 bathrooms and 48 acres of land.
Built in 1903 for a banking heir, the 42-room house features a grand driveway and classic shingled exterior.
Travolta's mansion also features a hotel-like lobby with sitting areas and a bar.
Designer Christopher Boshears created a master suite with a private sun porch and vintage bath.
The second floor houses 14 guest bedrooms sharing four bathrooms, while the top floor was transformed into a children's play area.
Grey's Anatomy star Patrick Dempsey also has a home in Kennebunkport, near pastoral conservation land.
The actor, known for his Maine roots, previously owned Live Well Farm in Harpswell, which is now a wedding venue.
Dempsey splits his time between his Maine property and a home in Malibu.
Despite some cooling compared to the frenzied pandemic market, competition is still strong.
Rodney Charest of the Charest Realty team said: 'We are seeing a more balanced market thus far this spring.'
He described a recent listing last week in Lisbon, which was listed at $350,000 with four bedrooms and 1.5 baths.
'We had an open house this past Saturday that attracted almost 30 different buyers, had several other showings and wound up with seven offers before the deadline on Sunday night.'
While the market has stabilized somewhat in 2024, with prices dipping slightly and homes staying on the market longer (an average of 22 days, up from just seven days last year), the damage is still present for many locals hoping to buy their first home.
'That has made it very challenging for any first time homebuyers that can't afford a mortgage for a property that is selling for over 300,000,' Curtis said.
'And like most states there is already a housing shortage, so we have a lot of buyers in the market, but are struggling for listings and homes to sell.'
Rising interest rates have only emphasized the problem for locals, many of whom are being pushed further from city centers.
'This was at a time where many companies were letting their employees work remotely. So that has definitely driven values much higher, for a state that generally has very low income,' he said. 'And of course, as the interest rates have continued to tick up over the past few years, it makes it even harder for them.'
Alex Wiss from Keller Williams the Mateja Group told the the pandemic merely 'sped up the inevitable,' with Maine now firmly established as a desirable location for wealthy out-of-state buyers and investors.
'Maine was fairly untouched and has been put on the map as a more affordable, New England state to live in, with a high standard of living, walkable cities, close proximity to the ocean or mountains, as well as a plethora of activities and world-class dining,' Wiss said.
The influx has created a ripple effect, with towns that once had depressed values now seeing significant increases - though they still remain below the average in coastal areas.
'The biggest challenge for first-time home buyers in Maine is finding an affordable home in good shape, close to their workplace,' Wiss explained.
'For example, some want to be within 30 to 45 minutes of Portland, and those homes are most likely going to sell for over what a first-time home buyer can afford, so buyers are being forced farther out.'
Charest outlined how the market has evolved: 'In 2020-2021 during Covid, houses sold in days if not hours at times with prices soaring and inventory dropped to record lows. Then 2022-2023 inflation hit and interest rates rose, which cooled things down a bit.
'Prices continued to increase and buyers became more selective. 2024-2025 things have stabilized, pricing home correctly is important.'
The buyer mix has diversified beyond the initial pandemic-driven purchases.
'There are still buyers from out of state purchasing second homes especially waterfront property. Local buyers looking to trade up or downsize... Out-of-state investors have been active, especially in multi-unit properties in cities like Lewiston, Auburn, Biddeford, and Portland,' Charest explained.
Some developers are working to address affordability concerns through restricted-income projects, like a new development in Brunswick offering stand-alone condos for $325,000 that would normally sell for more than $400,000.
'We are starting to see property values come down just a very little bit, but everything that's been happening in the world and in the country since the beginning of the year,' Curtis said.
'We are starting to see appraisals come in a little bit lower for properties that were maybe listed too high towards the end of last year.'
