Maine’s coastal and island communities have experienced a dramatic surge in home values over the past five years, exceeding national trends and solidifying their positions as the state’s most expensive ZIP codes. This surge, fueled by increased homebuying interest and limited inventory, has created a dynamic real estate market where home values have appreciated significantly, often outpacing local income growth.
The most expensive ZIP code, 04110, encompasses Cumberland Foreside, a picturesque coastal community near Portland. Boasting a median home value of $942,576 in November 2024, this area has witnessed a staggering 75.8% increase since November 2019. The high home values are reflected in the substantial income levels of residents, with nearly half of households earning $200,000 or more annually. The median household income stands at $187,857, while the mean income is considerably higher at $347,407, suggesting a significant concentration of high-earning residents.
Ogunquit, represented by ZIP code 03907, claims the second spot with a median home value of $903,100 in November 2024. This coastal town, also located near Portland, experienced an even more remarkable 77.7% surge in home values over the same five-year period. While home values rival those of Cumberland Foreside, income levels are comparatively lower, with a median household income of $104,250 and an average income of $185,336. This discrepancy highlights the impact of external factors, such as vacation home purchases and investment properties, on driving up property values.
Mount Desert, located on Mount Desert Island and represented by ZIP code 04660, ranks third with a median home value of $881,359 in November 2024. This more remote location, a significant distance from Portland, has also experienced substantial growth, with a 78% increase in home values since November 2019. Notably, the median household income in Mount Desert is significantly lower than in the top two ZIP codes, at $83,750, with an average income of $107,851. This stark contrast between home values and local incomes suggests that factors beyond local economic conditions are contributing to the rapid appreciation in this area. The desirability of Mount Desert Island as a vacation destination and a second-home market likely plays a significant role in inflating property values.
The overall trend in Maine’s most expensive ZIP codes points to a dramatic increase in home values, exceeding 50% growth over the past five years in most cases. This phenomenon underscores the intense demand for property in these desirable locations, driven by a combination of factors including proximity to the coast, scenic beauty, and a perceived scarcity of available homes.
The disparity between income levels and home values in some of these areas suggests that the demand is fueled not only by local residents but also by external buyers seeking vacation homes or investment properties. This influx of outside investment can further exacerbate the affordability challenges faced by local residents, potentially leading to a shift in the demographics of these communities.
Maine’s real estate market, particularly in its most expensive ZIP codes, presents a complex picture of rapid growth, high demand, and affordability concerns. While the appreciation in home values can benefit existing homeowners, it also poses challenges for those seeking to enter the market, particularly younger generations and those with lower incomes. This dynamic creates a crucial need for balanced housing policies and initiatives that address the needs of both current and future residents of these sought-after communities.
