This shift underscores how many high-income buyers have entered Maines market.
Purchasing Patterns: Upsizing, Downsizing, or Adding Second Homes?
However, downsizing in Maines tight market can be challenging suitable smaller homes are scarce and pricey.
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Thus, a lot of baby boomers simply stayed put in their large homes, which indirectly constrained inventory.
The greater Portland area and southern shoreline see the most activity.
Inland, Maines lakes and mountain regions became surprise hotspots during the pandemic.
The Premium Market Concentration
Still, the premium markets firmly center on southern/coastal Maine.
According to Maine Listings data, York and Cumberland counties consistently dominate the states luxury sales.
Coastal resort communities (Kennebunkport, Camden, Bar Harbor, etc.)
also have a cachet that draws affluent out-of-state buyers year after year.
Portlands Surprising Popularity
Areas like Greater Portland saw especially strong interest from remote workers.
Home-office space, high-speed internet, and privacy became top priorities in homebuying criteria.
Even as pandemic restrictions eased, the remote work trend has persisted to an extent.
Real estate professionals in Maine largely do not anticipate a reversal of this migration.
In theory, this gave high earners an incentive to relocate from high-tax states to lower-tax jurisdictions.
However, taxes were likely a secondary motivator compared to other factors like remote work and lifestyle.
Many high-income migrants actually kept a residency in a no-income-tax state (Florida, Texas, etc.)
for tax purposes while enjoying their home in Maine seasonally.
), highlighting tax as one consideration for relocating buyers.
Maines draw was less about tax savings and more about quality of life.
Still, the SALT cap did underscore the cost of living differences.
Climate Migration Emerges
Another emerging factor is the impact of climate and environmental considerations on homebuying.
While its hard to quantify climate-driven buying, anecdotal evidence suggests its a contributing motive for some high-income purchasers.
Wealthy buyers, in particular, have the flexibility to choose locations based on personal preference and future security.
Out-of-State Buyers and Demographic Profile
High-income homebuying trends in Maine are tightly intertwined with out-of-state buyers.
In 2019, only about 25% of home purchases in Maine were by out-of-state buyers.
But by 20212022, that share had grown to roughly 33% (one-third) as migration surged.
Over 26,000 people moved to Maine in 202021, bringing millions of dollars in taxable income into the state.
Other notable feeders included Texas, Connecticut, New Jersey, and Pennsylvania.
There are exceptions, of course.
In contrast, 20182023 saw explosive growth at the high end, as discussed.
By 2023, Maine was seeing hundreds of luxury sales annually, with over a thousand in 2024 alone.
This represents a structural change in the market that simply had no precedent in the earlier decade.
By 2024 the median reached ~$390k (73% higher than 2019).
Such rapid appreciation far eclipsed anything seen in the earlier decade.
Migration Patterns
The 20082017 period saw relatively little population growth in Maine.
By contrast, 20182023 marked a reversal, with Maine leading New England in net domestic migration rates.
In 2021, Maine had the 7th highest net migration rate in the nation.
Most boomer homeowners were in their peak working years then and werent yet retiring to Maine in huge numbers.
Climate considerations also became more prominent toward 2020s.
None of these factors were present or impactful in 20082017 to the degree they were later.
