Maine’s picturesque coastline, charming small towns, and pristine wilderness have long captivated visitors, but now they’re increasingly becoming home to America’s most influential generation. With roughly 40% of all Maine homes owned by baby boomers—one of the highest concentrations in the nation—this generation’s housing decisions are reshaping communities across the Pine Tree State.
As boomers enter their retirement years, they face crucial decisions about where and how to live, balancing financial considerations with lifestyle preferences and healthcare needs. From Portland’s vibrant peninsula to quiet lakeside cabins in rural counties, Maine offers plenty of options for aging Americans. Yet despite predictions of an apocalyptic wave of downsizing, many boomers are choosing an unexpected path.
General Trends: Location and Lifestyle Choices
Dominance of Boomer Homeowners
Maine’s housing market is heavily influenced by baby boomers (born 1946–1964). Nationally, Americans 55+ owned 54% of owner-occupied homes in 2023, up from 44% in 2008. Maine exemplifies this trend with the country’s oldest median age (45 years) and roughly 40% of homeowners being baby boomers – one of the highest concentrations in the U.S.
Many of these boomers are long-time homeowners who have aged in place, meaning they’ve stayed in their homes into retirement instead of moving. Surveys show about 85% of older Mainers prefer to “age in place” in their communities, translating into boomers holding onto homes longer than previous generations.
Aging in Place vs. Downsizing
A notable trend from 2018–2023 is that a large share of Maine’s baby boomers remain in their current homes. Empty-nest boomers now own twice as many large (3+ bedroom) homes as millennials with kids, keeping many big family homes off the market.
Many would like to downsize to smaller, single-floor homes or condos – but finding an affordable, suitable option has been difficult. As one analysis noted, boomers often discover that “it just doesn’t make sense financially” to sell a house that’s paid-off or carrying a low mortgage and pay a premium for a smaller replacement. In Maine’s tight housing market, single-level homes in good locations are snatched up quickly and often at high prices, deterring would-be downsizers. The result is that aging in place is the default for many, unless health or life events force a move.
Urban, Suburban, or Rural?
Maine’s baby boomers are spread across urban, suburban, and rural settings with different micro-trends. Overall, there hasn’t been a mass boomer shift from rural to urban – many rural boomers continue to live in the small towns or countryside where they spent their working years.
However, some are relocating for convenience. For example, older couples from very rural counties might move to regional hubs (like Bangor or Augusta) to be closer to hospitals and shopping. Urban areas like Portland have seen boomers moving in for a more walkable lifestyle – some affluent retirees have traded big suburban houses for condos in Portland’s Old Port. But just as many boomers in Greater Portland are staying in the suburbs because they enjoy space and familiar surroundings.
In short, Maine boomers aren’t universally flocking to cities or retirement enclaves – their choices vary, with a common thread being the desire for safe communities, accessible services, and comfortable homes as they age.
Motivations: Why Maine Boomers Move (or Don’t)
Retirement Lifestyle
Many boomers move (or stay) with an eye toward an enjoyable retirement lifestyle. Maine’s appeal for retirees is its quality of life – natural beauty, outdoor recreation, and charming communities. Retirees who move to Maine often cite the “safer, smaller, slower-paced” environment and scenic amenities like lakes, forests, and the coast.
Some Maine boomers leave the state upon retirement seeking warmer weather or to be closer to grandchildren. But in 2018–2023, Maine gained many more retirees than it lost, thanks to its desirability during the pandemic. Twin 67-year-old sisters from New York who relocated to Portland during COVID exemplify newcomers drawn by Maine’s lifestyle and sense of safety.
Bottom line: Retirement drives housing moves – some boomers choose Maine for its peaceful lifestyle, while those already in Maine tend to stay because they value the familiarity and beauty of “Vacationland” in their golden years.
Affordability & Cost of Living
Affordability is complex for Maine’s boomers. For long-time homeowners, Maine’s rising home values have been a boon – their home equity has grown significantly. However, for boomers looking to buy in 2018–2023, prices were much higher than a decade prior.
The median single-family home price in Maine jumped from around $225,000 in 2018 to about $335,000 in 2022, a roughly 50% increase. This rapid appreciation made downsizing to a smaller house or moving to a coastal town more expensive than expected.
Out-of-state boomer buyers often find Maine affordable compared to where they come from. Someone from Massachusetts or New York may sell a home for $700k and buy a comparable home in Maine for $400k. This dynamic contributed to Maine’s influx of boomer buyers: the state’s home prices, though high for locals, looked like a bargain to many East Coast transplants.
Climate and Healthcare Access
Climate plays a push-pull role. Historically, many Maine retirees became “snowbirds,” spending winters in Florida or Arizona. That still happens, but the trend showed signs of shifting during 2018–2023. As other regions experience extreme heat, Maine’s milder summer climate has become a selling point. There’s growing discussion of “climate migration”: retirees choosing Maine despite cold winters to avoid severe heat, wildfires, or hurricanes elsewhere.
Healthcare access is crucial in housing decisions. Those in remote rural areas often face long drives to hospitals and specialists, motivating some rural retirees to move closer to cities like Portland or Bangor with large medical centers. Proximity to doctors, pharmacies, and hospitals is frequently cited by downsizing boomers as a reason to settle in a particular town.
Taxation and Financial Considerations
Taxes play a role in some boomers’ decisions, though perhaps less than sun and snow. Maine has a relatively high tax burden with a state income tax (top rate ~7%) and substantial property taxes on high-value homes.
However, Maine has taken steps to be more retiree-friendly in taxation. Notably, Social Security benefits are not taxed in Maine, and the state provides deductions for other retirement income (pensions, 401k withdrawals) up to certain limits. This means middle-class retirees often pay little to no state income tax on typical retirement incomes.
Maine also offers property tax relief programs (like the Homestead Exemption and a refundable Property Tax Fairness Credit) aimed at seniors. The cost of heating and utilities in Maine is another financial factor – heating oil and electricity costs can strain retirees’ budgets.
All things considered, taxes and living costs do influence boomer moves, but in this period many felt the intangible benefits of staying in Maine outweighed the savings of moving to low-tax southern states.
Financial Factors: Rates, Prices, and Economic Conditions
Surging Home Prices
The late 2010s and early 2020s saw Maine’s home prices soar. For boomers who already owned homes, this surge meant a big increase in housing wealth. Many found themselves sitting on homes worth far more than they paid, boosting their net worth heading into retirement.
However, a double-edged sword emerged: if they wanted to buy another home in Maine, they’d be buying into the same high market. This trapped some owners in a quandary: their house is worth a lot, but any smaller house or condo might cost just as much unless they left high-demand areas.
High prices coupled with low inventory discouraged intra-state moves. Boomers who didn’t need to move often chose not to, since staying put was financially safer. On the other hand, boomers moving into Maine often had the advantage of cash from even pricier markets, allowing them to absorb Maine’s price jump.
Mortgage Rate Rollercoaster
In 2018–2021, mortgage rates hovered at record lows (around 3–4%), making financing a home purchase very attractive. Many boomers took advantage: some refinanced mortgages, and others purchased vacation or retirement homes with cheap loans.
However, the situation reversed sharply in 2022. By late 2022, the average 30-year mortgage rate was around 7% – the highest in over a decade. This rise brought about the “mortgage lock-in effect” for homeowners: boomers with a 3% mortgage (or no mortgage) were extremely hesitant to sell and take on a new mortgage at 6–7%. Redfin’s data showed 54% of boomer homeowners have paid off their homes, and most others have low fixed rates.
As one boomer put it, “It just is a dumb economic decision to spend that much extra money [to downsize] for getting so much less.” The spike in rates thus froze many boomers in place by 2022–2023. Home purchases by boomers during this high-rate period were often all-cash deals or involved those relocating from expensive regions who could afford large down payments.
Economic Ups and Downs
Beyond housing-specific factors, general economic conditions from 2018 to 2023 also played a role. The period saw low unemployment and strong stock market gains through 2019, a sharp (but brief) recession in 2020 due to COVID-19, and then rapid recovery with robust asset growth into 2021.
By contrast, 2022–2023 brought high inflation which increased everyday expenses for retirees. Heating oil, gasoline, and groceries – all important in Maine – became significantly more expensive in 2022. This squeezed some retired boomers’ budgets and may have delayed elective moves.
Maine’s in-migration during the pandemic drove housing demand up while supply was low, affecting all buyers. Boomers often found themselves in bidding wars in 2020–2021 if they were trying to buy – something that wasn’t as common in the 2000s or early 2010s.
Some boomers ultimately bowed out of buying because they refused to engage in frantic bidding. Others, particularly incoming retirees with cash, won those bidding wars – sometimes making offers $100k over asking price.
Regional Breakdown: Where Are Boomers Buying in Maine?
Greater Portland (Southern Maine)
Southern Maine – especially Portland and its suburbs in Cumberland and York counties – has been a hotspot for both aging Mainers and inbound retirees. This region accounted for about 70% of the state’s population increase in the last decade, with boomers as a significant component.
Portland offers top-tier restaurants, cultural events, and healthcare facilities, making it attractive to boomers seeking an active retirement. Some long-time suburban boomers in towns like Falmouth, Cape Elizabeth, and Scarborough have either held onto their homes or sold to move into downtown condos.
Southern Maine’s coastal towns (Kennebunk, York, Wells) continued their popularity among retirees, offering beachfront beauty and community amenities. Out-of-state boomers often target these towns. The influx of well-off retirees has driven prices up sharply, with some locals referring to coastal southern Maine as Maine’s “snowbird trap” – retirees move there for summer and fall, and many still winter in Florida.
Midcoast and Downeast Coastal Towns
Maine’s Midcoast (Brunswick, Damariscotta, Camden) and Downeast coast (Bar Harbor, Blue Hill) have long attracted retirees seeking a quieter, scenic lifestyle. Real estate agents reported a surge of interest from baby boomers across the U.S. – people who perhaps vacationed in Maine and decided to make it permanent.
The Camden/Rockland area has drawn “people of means” retiring, including folks buying “million-dollar homes in Camden” simply because “they love it there.” These tend to be affluent boomers who can afford waterfront estates or historic homes with ocean views.
With limited housing supply, many coastal communities have seen retirees bidding up prices. A 2023 finance column listed Camden and Bar Harbor as beautiful but potentially “overpriced” retirement towns. An interesting micro-trend is that some native Maine boomers who might have downsized within these coastal communities instead sold to out-of-staters and moved inland (cashing out equity).
Bangor and Rural Maine
The Bangor region serves as the economic and healthcare center for much of northern Maine, offering affordable housing, less traffic, and a strong community feel. From 2018–2023, a number of Maine’s rural boomers relocated to the Bangor area to be closer to services.
Housing in Bangor is comparatively cheap – roughly half the price of southern Maine. A boomer who sells a house in Kennebunk for $500k could buy a very comfortable home in Bangor for $300k and bank the rest. Bangor and surrounding towns have positioned themselves as age-friendly communities, improving walkability, transportation, and housing options for seniors.
Rural areas of Maine have aging populations and youth out-migration. The trend for boomers here has been largely “stay if you can.” Many have deep roots (family land or multi-generational homes) and have remained in place into retirement.
When older residents pass away or move to assisted living, there often aren’t younger families moving in. Some towns are reaching a tipping point where a large share of homeowners are boomers with a looming turnover of housing as they eventually leave.
The pandemic brought a few surprises: some boomers from out of state sought rural Maine as a refuge, though these cases were rare. Unlike southern regions, rural Maine did not see a significant influx of retiree homebuyers during this period.
Home Types and Preferences
Maine boomers overwhelmingly prefer single-family detached homes. Within this category, one-story homes (ranch or cottage style) are in very high demand – primarily for mobility and ease of maintenance. These homes often sold quickly, sometimes even above the price of larger two-story homes, as downsizers competed for them.
Condominiums gained popularity with some boomers, especially in urban areas and coastal communities. Condos offer the benefit of exterior maintenance being handled by an association, appealing to retirees who want a more carefree lifestyle. However, monthly HOA fees and high purchase prices for newer units deterred many boomers.
Maine has a handful of active adult (55+) communities that saw steady interest. Highland Green in Topsham offers custom-built homes and amenities aimed at active retirees. These communities attract those who want to live among peers in a ready-made social setting. They’re typically priced at the higher end, mainly drawing middle-to-upper income retirees.
Comparison with the Previous Decade (2008–2017)
The 2010s saw slow growth in Maine’s population – just 2.6% from 2010 to 2020 with more deaths than births each year. In contrast, the late 2010s and early 2020s brought an unexpected population boom, with Maine gaining ~55,000 new residents from 2020–2023 alone. Many were mid-career or retirement-age individuals, making Maine more of a retirement destination than in the previous decade.
The housing market differed dramatically. In 2008–2012, the housing crash and slow recovery caused many boomers to delay retirement moves as their home equity shrank. By 2018, equity had rebuilt, and the housing boom of the 2020s gave boomers more financial freedom but made buying more challenging.
Inventory and construction also contrasted sharply. The 2010s had more homes available relative to demand, while the early 2020s saw historic low inventory in Maine, partly because boomers weren’t selling. A recurring story in 2018–2023 was boomers wanting to downsize but being unable to find suitable homes at reasonable prices, leading them to stay put.
The earlier decade saw predictions of a coming “silver tsunami” of boomers selling homes and downsizing. But Maine, like much of the country, found that the wave didn’t materialize as expected. By 2018–2023, it became clear that boomers were moving even less frequently than before, despite being older.
The massive sell-off of boomer-owned homes that some expected by the late 2010s didn’t happen; instead, Maine’s boomers tightened their grip on their houses, contributing to inventory shortages.
References
- Baby Boomer-Dominant Housing Markets – Construction Coverage (2024)
- Many baby boomers own homes that are too big. Can they be enticed to sell them? – Maine Public (2024)
- Making Maine More Livable – AARP Maine (2015)
- The pandemic gave Maine a population boom. Will climate change be next? – Portland Press Herald (2023)
- Three Charts That Explain Maine’s Surging Real Estate Prices – Down East Magazine (2021)
- Housing Statistics – Maine Association of REALTORS® (2021)
- 2022 National Movers Study – United Van Lines® (2023)
- Midcoast banking on baby boomers; area wooing wealthy, community-minded retirees – Bangor Daily News (2012)
- Best Small Towns in Southern Maine for Retirees – Make Maine Your Home (2024)
- MaineHousing Outlook Report 2023 – MaineHousing (2023)
- Livable Age-Friendly Community – Bangor Public Health (2022)
- The circle of life: Maine’s retirement communities focus on providing multiple options for care at one facility – Mainebiz (2018)
- What Silver Tsunami? Baby Boomers Plan To Never Sell Their Homes – Yahoo Finance (2023)
- Maine Tax Guide – Kiplinger (2022)
- 4 Most Overpriced East Coast Retirement Towns – Yahoo Finance (2023)
- Economic and Demographic Trends in Maine – Maine State Legislature (2023)
- Retiring in Maine and Choosing a 55+ Active Adult Community – Seniors Real Estate (2022)
- The best coast? Top 10 cities for an active retirement – CNBC (2018)
