It was inevitable. Portland’s skyline will soon rise. Portland has been the center for Maine’s high-rise construction with such structures as Franklin Towers (175 feet); Back Bay Tower (172 feet); and 201 Federal Street (200 feet). With the announcement in May of the 30-story, 380-foot ‘Old Port Square’ proposed building, things are about to change.
This downtown project has been in the making for over 16 years by Portland based developer, East Brown Cow. It was now possible in part to the overhaul of Portland’s land use ordinances in November 2024. This project’s two buildings will join other East Brown Cow buildings currently occupying the four-acre Canal Plaza Block site in the Old Port.
The 30-story ’45 Union Street’ property is for mixed use including condominium residences, retail, commercial, and hospitality. The centerpiece will be a top floor glass enclosed observation deck with a 360-degree view of Casco Bay and the surrounding areas. The second structure will be a 2-story building called ’55 Union Street’ with a focus on retail.
Programing this exciting high-rise space is not complete but luxury residential condos are likely due to the local market success of these very desirable types of units. In 2024 luxury condos (>$800,000) sold rapidly with more than 70% bought with cash. There is strong support for future high-rise condos as shown by the statement from the director of planning and urban development, Kevin Kraft, stating “As the city grows and we have limited land, trying to grow in a sustainable manner means building vertically” and.., “getting the most density downtown, where areas are more walkable”. The project will be located between the Arts District and the Old Port, allowing good access to transportation.
This Old Port Square project illustrates one solution to Maine’s urban residential condo needs, but the most pressing need is affordable housing for Maine’s rapidly expanding workforce. The state sponsored “State of Maine Housing Production Needs Study” reports 84,000 new residential units needed by 2030. Half of these are due to Maine’s historical lack of new construction and half is due to the increase in Maine’s population after the pandemic and recent climate change pressures around the country from actual and predicted storms, fires, and water shortages.
To meet these needs municipal agencies around the state are developing creating methods of producing affordable housing. One of these strategies is coming from Portland-based nonprofit group Avesta who is northern New England’s biggest affordable housing provider. Avesta has launched a new program called “Domus” which will construct conventionally financed buildings of small, one-bedroom condos in southern Maine selling at $285,000 per unit. This strategy provides Avesta alternatives to subsidy-reliant housing due to the uncertainty around federal funds in the era of the present administration. The program is in the final planning with the first building with 45-units (500 square feet) in Westbrook.
Another example of affordable condo development is ‘Dougherty Commons’ located off Douglass Street in Portland. Construction has just begun on 20 housing units for fall occupancy and an additional 42 condo units in 2026. The homes will be energy efficient, all electric with heat pumps. This project will offer one ($260,000) and three-bedroom (325,000) condo units to buyers earning a percentage of the area mean income ($89,250 for one individual) and ($114,750 for a three-person household) subject to change.
One of the more creative affordable condo developments is in the Boothbay Region. The towns of Boothbay Harbor and Boothbay recognized their housing inventory was not meeting the needs of the region’s tradesmen and service provider households with annual incomes of $50,000 to $100,000 due to the expense of a new condo unit. This meant the workforce was making long-distance commutes or avoiding the area all together.
Both towns recognized their economies needed an imbedded workforce who will live where they work. The towns’ solution was to join and create an entity called ‘The Development Corporation’ to produce affordable housing for their workforce. The Boothbay voters approved $1.5 million in tax incremental financing (TIF) to fund the construction of infrastructure including extending water and sewer lines for the condo project. Lincoln County provided several hundred thousand dollars for the project and supplemented by federal ARPA Covid-19 relief monies. The most surprising source of money was from the communities themselves with over three million dollars donated by both local and part time residents.
The first phase of the 20-unit condo project has started with initial occupancy expected on Labor Day. Unit prices will be based on buyer’s incomes on these primary residences meaning no rentals. To ensure a sustaining program for future workforce needs the deeds will be restricted to allow the Development Corporation the first right of refusal on future unit sales.
Maine condos are growing in popularity with a 9.1% increase in unit sales (1,884 units) in 2024 compared to single family homes increase of 4.8%. Condos in the past were often considered to be starter homes but in 2024 the median condo sales price was $515,478 surpassing the median price of single-family homes at $496,435. If Maine is to have a sustainable economy, it must provide affordable housing for its present and future workforce population. Hopefully, the three affordable housing programs presented here will serve as models for future development of Maine’s condo inventory.
Written by Jack Carr, P.E., R.S., LEED-AP, Senior Consultant Criterium Engineers
Published in Condo Media