High-income households (earning $500,000+ annually) have played an increasingly significant role in Maine’s residential real estate market from 2018 through 2023. Take a look at how these affluent buyers – roughly the top 1% by income in Maine – have influenced homebuying trends.
Types of Homes Purchased by High-Income Buyers
Maine’s wealthy homebuyers overwhelmingly gravitate toward luxury properties, typically high-end single-family homes often in prime locations. Many of these properties are substantial in size (e.g., expansive waterfront estates or large historic homes) or newer builds with modern amenities and high-quality finishes.
Maine’s luxury market has seen explosive growth in recent years: in 2024, a record 1,146 homes sold for over $1 million – roughly quadruple the number of million-dollar sales just five years prior (307 in 2019). The boom extends to the ultra-luxury segment as well; homes over $2 million increased from 59 sales in 2019 to 237 in 2024, and sales over $5 million jumped from 5 to 21 in that period. This surge indicates that high earners are purchasing some of Maine’s most expensive residential real estate at an unprecedented pace.
Luxury single-family homes are the primary choice for these buyers, especially those offering unique features like ocean frontage, lake access, or extensive acreage. For example, in mid-2021 a 10,000-square-foot estate on Sebago Lake sold for $8.5 million to a Massachusetts buyer – the highest Maine home sale since 2018. This property included upscale amenities (cathedral ceilings, home theater, private cove, even a lighthouse on site) and illustrates the type of exclusive home drawing high-income interest.
In addition to stand-alone houses, some wealthy buyers opt for high-end condominiums in desirable areas (such as luxury condos in Portland’s Old Port or along the coast) for a more turnkey lifestyle.
Growing Market Share of Luxury Properties
Notably, Maine’s luxury market has expanded so much that it now makes up a far greater share of total home sales than in the past. By 2024, luxury transactions comprised about 7% of all home sales in Maine, up from roughly 1.5% five years earlier. Industry experts suggest it may be time to redefine “luxury” in Maine beyond the traditional $1 million threshold, perhaps as the top 5% of sales (which in 2024 meant homes above ~$1.2 million).
This shift underscores how many high-income buyers have entered Maine’s market. Their preference for top-tier homes has “driven all segments of Maine’s residential real estate,” as one real estate agent observed. In other words, demand from affluent buyers is pushing up prices even for non-luxury homes and influencing market dynamics across the board.
Purchasing Patterns: Upsizing, Downsizing, or Adding Second Homes?
One key question is how these wealthy households are changing their housing footprint: Are they upsizing to larger properties, downsizing to smaller ones, or simply buying additional homes?
The answer varies by life stage, but a common theme is that many high-income buyers in Maine are purchasing additional properties (second or even third homes) rather than trading one primary residence for another. Maine has long been a vacation-home haven, and many $500k+ earners are taking advantage of their resources to acquire seasonal homes in the state while keeping their primary residence elsewhere.
Baby Boomer Buyers and Family Retreats
A significant share of affluent buyers in 2018–2023 were baby boomers or older Gen Xers nearing retirement, often looking for a retreat for family gatherings. These buyers are typically not first-timers or young families moving up the property ladder; instead, they are already homeowners and financially established.
In many cases, they maintain a primary home (sometimes out-of-state) and add a Maine property to their portfolio. According to one luxury real estate specialist, today’s high-end buyers in Maine are often older “luxury empty nesters” seeking a second home as a “home base” for kids and grandkids – essentially a gathering place for family vacations and holidays. These buyers are “not constrained by a budget” and will “strike hard” once they find the right home, often paying cash.
Pandemic-Driven Relocation
Some high earners relocated to Maine as their primary residence during this period, effectively upsizing their lifestyle. For example, professionals who lived in dense cities have moved into Maine’s spacious homes to gain more room and privacy. During the pandemic, stories emerged of buyers leaving city apartments for roomy houses in Maine with home offices and big yards.
In these cases, one could view their move as an “upsize” in home size and quality of life (even if the price was lower than their previous metro market).
Limited Downsizing Movement
On the other hand, a subset of affluent Maine locals have downsized or plan to, especially empty nesters seeking easier maintenance. However, downsizing in Maine’s tight market can be challenging – suitable smaller homes are scarce and pricey. Many older Mainers found “it just doesn’t make sense financially” to sell a large paid-off house to pay a premium for a smaller one. Thus, a lot of baby boomers simply stayed put in their large homes, which indirectly constrained inventory.
High-income boomers who did move often opted for convenience (e.g., trading a suburban house for a luxury condo in Portland) rather than downsizing for cost reasons.
In summary, while a few wealthy buyers have downsized for lifestyle reasons, most trends among $500k+ households involve either upsizing to Maine’s luxury market or acquiring additional vacation properties.
Popular Regions and Property Locations
Southern and coastal Maine are the top magnets for high-income buyers, though affluent house-hunters are spreading into various corners of the state. The greater Portland area and southern shoreline see the most activity.
Data show that the majority of Maine’s highest-priced home sales occur in York and Cumberland counties (Maine’s two southernmost coastal counties). York County towns – such as Kennebunkport, Ogunquit, and York itself – and Cumberland County communities – like Cape Elizabeth, Falmouth, Yarmouth, and Portland – are perennially popular.
These areas offer desirable coastline, upscale amenities, and relative proximity to Boston, making them especially attractive to out-of-state luxury buyers from Massachusetts and New York. It’s no coincidence that in 2024 the three priciest home sales in Maine (all around $8.4 million) were split between Kennebunkport and York.
Expanding Interest in Other Regions
Beyond the southern coast, other regions of Maine also saw increased high-end buying. The Midcoast (Knox and Lincoln counties, including towns like Camden, Rockport, and Boothbay Harbor) continues to attract affluent buyers seeking classic New England harbor scenery. On the Downeast coast, Mount Desert Island (home to Bar Harbor and Acadia National Park) remains a luxury enclave for second homes.
Inland, Maine’s lakes and mountain regions became surprise hotspots during the pandemic. For instance, the western lakes town of Rangeley experienced a population boom in 2020 as people sought safe havens away from urban centers. High-income remote workers snapped up lakefront cabins and ski chalets in areas like Rangeley, Moosehead Lake, and the Sugarloaf region to enjoy Maine’s outdoors year-round.
Even far-northern areas, traditionally not on the radar of wealthy buyers, saw some influx; one report noted that newcomers “from Portland to Rangeley to Presque Isle” were driving a frenzied market statewide.
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 state’s luxury sales. These counties boast Maine’s highest median incomes and home values, and they offer the infrastructure (fine dining, marinas, golf courses, cultural venues) that high-end buyers often seek.
Coastal resort communities (Kennebunkport, Camden, Bar Harbor, etc.) also have a cachet that draws affluent out-of-state buyers year after year. In 2021–2022, as luxury sales quadrupled, Maine’s total home sales volume actually rose to $7 billion in 2024 from about $5 billion in 2019 despite fewer homes sold, thanks largely to soaring prices at the top end.
In short, wealthy buyers have been voting with their wallets, concentrating on Maine’s most scenic and convenient locales. From oceanfront estates in Kennebunkport to lakefront manors in the Sebago Lake area, the geography of high-income homebuying in Maine skews toward water, beauty, and proximity to amenities.
The Remote Work Effect on Housing Trends
The rise of remote work during this period – especially amid the COVID-19 pandemic – fundamentally altered Maine’s homebuying landscape. High earners who previously were tied to offices in New York, Boston, or San Francisco suddenly gained the freedom to live anywhere, and many chose Maine for its quality of life.
Starting in 2020, real estate agents observed a wave of out-of-state professionals hunting for homes in Maine, enabled by work-from-home policies. Home sales and prices surged to historic highs as remote workers flooded in, seeking larger homes and a safer environment during the pandemic. Houses were snapped up at double the speed of just a couple years prior, often selling within days and sometimes for six figures over asking price.
This frenzy was directly linked to affluent remote buyers: cash offers well above list price became common, reflecting the buying power of high-salaried individuals relocating from higher-cost cities.
Portland’s Surprising Popularity
Areas like Greater Portland saw especially strong interest from remote workers. In fact, by 2022 Portland, ME ranked among Redfin’s top 10 migration destinations in the country, the only non–Sun Belt metro on that list. Redfin reported that net inflows of users searching to move to Portland spiked as people fled expensive coastal cities for more affordable locales.
Many of those new buyers were coming from places like Boston, New York, and even California – bringing big-city salaries that could easily secure a home in Maine. For example, the typical home in Los Angeles cost around $845,000 in 2022, whereas Portland’s median sale price was well under $500,000. This disparity meant that a high-income buyer from L.A. or NYC could sell a modest property there and upgrade to a larger, nicer home in Maine and possibly pocket savings.
Home Office Priority and Long-Term Impact
Telecommuting allowed these households to treat Maine not just as a vacation spot but as a primary living location while maintaining their lucrative jobs elsewhere. By late 2020, remote work had become “the status quo” for many, and Maine’s real estate market saw “gobsmacking” increases in sales volume and prices as a result.
A good number of Maine’s high-end home purchases in 2020–2022 were by tech and finance professionals who continued working for out-of-state employers but chose to live in Maine. In other cases, native Mainers who had built high-paying careers outside the state moved back home once they could work remotely, bringing their earnings with them.
Home-office space, high-speed internet, and privacy became top priorities in homebuying criteria. One buyer from Brooklyn, for instance, bought a $350k house sight-unseen on coastal Bailey Island in 2020, specifically to have more space for remote work and a safer environment for her family during COVID.
Even as pandemic restrictions eased, the remote work trend has persisted to an extent. Many high-income individuals now split time between Maine and a city, or remain full-time in Maine while occasionally traveling for work. Real estate professionals in Maine largely do not anticipate a reversal of this migration.
The consensus is that remote work has permanently expanded Maine’s pool of potential homebuyers to include wealthy people who value lifestyle over proximity to a corporate office. In summary, telework enabled an influx of rich, mobile buyers into Maine from 2018–2023, supercharging demand for homes and contributing to rapid price escalation.
Tax Policies and Climate Change as Factors
Economic and environmental factors also played a role in high-income homebuying decisions:
Tax Considerations
The late 2010s brought changes in federal tax law that affected affluent households’ location choices. Notably, the 2018 Tax Cuts and Jobs Act capped the federal deduction for state and local taxes (SALT) at $10,000. This cap hit wealthy residents of high-tax states (like New York, New Jersey, and California) particularly hard.
Such individuals suddenly faced much larger after-tax burdens on their big incomes and expensive homes, since they could no longer write off most of their state income and property taxes. In theory, this gave high earners an incentive to relocate from high-tax states to lower-tax jurisdictions.
While Maine is not a low-tax state (its top income tax rate is ~7.15%, and property taxes are significant), it can be more tax-friendly than, say, New York City or California for some individuals. For example, California’s top income tax rate exceeds 13%, and New York City residents pay state + city taxes on top of steep property levies.
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.
Indeed, among the top 10 migration destinations in 2022 were six states with no income tax (Florida, Texas, Tennessee, etc.), highlighting tax as one consideration for relocating buyers. Maine’s draw was less about tax savings and more about quality of life.
Still, the SALT cap did underscore the cost of living differences. High earners moving to Maine could at least take comfort that Maine’s home prices and property taxes were lower in absolute terms than those in metro Boston, New York, or coastal California.
Climate Migration Emerges
Another emerging factor is the impact of climate and environmental considerations on homebuying. Maine’s geography – far north, water-rich, and largely insulated from extreme weather events – has gained attention as climate change intensifies elsewhere.
In recent years, the term “climate migration” has been used to describe people relocating from areas hit by wildfires, droughts, heat waves, or sea-level rise, to more climate-resilient regions. Maine has featured in this conversation as a relatively cool, forested state with abundant coastline (though not immune to sea-level rise and storms).
According to local real estate observers, some people are moving to Maine for climate reasons – seeking refuge from environmental instability. For example, a family from fire-prone California or hurricane-weary Florida might buy a summer home in Maine as both a vacation spot and a long-term hedge against climate risk.
While it’s hard to quantify climate-driven buying, anecdotal evidence suggests it’s a contributing motive for some high-income purchasers. Maine’s milder summers (especially along the coast) offer relief from the extreme heat now common in the South and Southwest.
The state also has ample freshwater and hasn’t seen the level of climate disasters other states have faced (no wildfires, rare hurricanes, etc.). One real estate commentary noted that people are coming to Maine “for many reasons, ranging from quality of life and climate migration to remote work.”
Wealthy buyers, in particular, have the flexibility to choose locations based on personal preference and future security. A tech executive from Silicon Valley who can work remotely might choose Maine not only to escape congestion but also to avoid California wildfire season; a retiree from Miami might spend summers in Maine to escape the intensifying heat and hurricanes in Florida.
On the flip side, Maine’s climate is not without its downsides – winters are cold and long, and coastal flooding is a growing concern for low-lying shoreline properties. Some high-end buyers have indeed been wary of oceanfront investments that could face erosion or flood damage in coming decades.
But overall, Maine’s climate reputation is positive: the state is seen as a potential “climate haven,” which has begun to factor into the calculus of high-net-worth individuals planning for the future.
Out-of-State Buyers and Demographic Profile
High-income homebuying trends in Maine are tightly intertwined with out-of-state buyers. A striking aspect of 2018–2023 is how many wealthy purchasers came from outside Maine, bringing new demand (and money) into the market.
Traditionally, Maine’s housing market was driven mostly by local moves (Maine has a high homeownership rate and people tended to stay put or move within the state). In 2019, only about 25% of home purchases in Maine were by out-of-state buyers. But by 2021–2022, that share had grown to roughly 33% (one-third) as migration surged.
Put differently, the proportion of buyers from out of state jumped by about one-third in just a few years – an unprecedented shift. Maine recorded a net influx of population for the first time in decades: the state’s population grew from ~1.362 million in 2020 to ~1.385 million in 2022, an increase largely attributable to people moving in.
High-Income Migration Patterns
These newcomers were often high-income individuals or families. According to the Maine State Housing Authority, people moving into Maine during the pandemic had higher incomes on average than existing residents (mean household income of in-migrants was about $88,000 vs $78,000 for Maine residents).
Many of the new arrivals far exceeded those averages – including the $500k+ earners buying up Maine’s priciest homes. IRS data confirms that Maine was unique in 2020–2021 for gaining wealthy residents: every single county in Maine saw a net increase in taxable income from migration, collectively adding thousands of new high-income households.
In fact, a study found Maine was the only state where every county saw net income gains during the pandemic relocation wave. Over 26,000 people moved to Maine in 2020–21, bringing “millions of dollars in taxable income” into the state.
Source States for Affluent Buyers
The top source states for Maine’s out-of-state buyers read like a who’s-who of high-income, high-cost areas. In 2022, the largest number of out-of-state homebuyers came from Massachusetts (1,430 home purchases), followed by New Hampshire (~669), Florida (366), New York (303), and California (301).
Other notable feeders included Texas, Connecticut, New Jersey, and Pennsylvania. These states align with what one would expect: Massachusetts and New York supply both retirees and remote professionals looking for Maine retreats; Florida sends former Maine snowbirds returning for summers (or “halfback” retirees moving halfway back north); California and Texas contribute remote tech and energy sector folks drawn to Maine’s charm.
The presence of distant states like CA and TX in the top 5 sources underscores how remote work untethered buyers from geography – it’s no longer just New Englanders buying in Maine, but people from all over the country.
Demographic Characteristics
Demographically, most high-income buyers in Maine are middle-aged or older, often married couples without young children at home. Maine has the oldest median age in the nation (about 45 years), and roughly 40% of Maine homeowners are baby boomers.
Nationally as well, homeownership has skewed older: Americans 55+ now own 54% of owner-occupied homes (up from 44% in 2008). Thus, it’s no surprise that the typical $500k-earning buyer in Maine is likely in their 50s or 60s.
The luxury market data backs this up: agents report these buyers are often “luxury active baby boomers” or “empty nesters” who may be newly retired or approaching retirement. They frequently have adult children (hence the desire for a home base for kids/grandkids) and are financially very secure (hence the ability to pay cash).
Many come from high-powered careers – for instance, executives, doctors, lawyers, finance managers, or successful entrepreneurs – which afforded them both high incomes and often the flexibility to work remotely or retire early.
There are exceptions, of course. A minority of high-income Maine buyers are younger professionals (30s and 40s), such as tech entrepreneurs or hedge fund managers, some of whom grew up in New England and decided to return. But these cases are less common; nationally, the peak earning age group (Gen X, ages 43–57) had a median homebuyer income of about $114,300 in 2021, far below $500k.
In terms of family structure, a large proportion of these buyers are couples without young children – either empty nest couples or retirees. Some are part-time residents (with family remaining in another state); others are relocating fully but often their kids are grown or in college.
A portion of wealthy buyers are multi-generational households using Maine homes for extended family gatherings (e.g., a grandparent buying a big lake house where children and grandchildren visit). Professions vary, but common threads are that they are highly educated and often hold jobs that can be done remotely or they are business owners/investors.
Comparison: 2018–2023 vs. 2008–2017
The housing trends of 2018–2023 among affluent buyers differ markedly from those in the prior decade (2008–2017). The late 2000s and early-to-mid 2010s were characterized by the aftermath of the housing crash and a slow recovery, whereas the late 2010s through early 2020s saw an unprecedented boom in Maine’s high-end market.
Volume of High-End Sales
From 2008 to 2017, Maine’s luxury home segment was relatively small and stable. Million-dollar sales were a rarity in the immediate post-crash years and gradually increased by the mid-2010s but remained a tiny niche.
By 2017, Maine’s entire housing market had just begun to regain momentum – the median home price had only recently exceeded pre-2008 levels. In 2017 the statewide median was about $200k, and million-dollar sales likely numbered in the dozens per year.
In contrast, 2018–2023 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. Luxury homes went from ~1–2% of sales in the early 2010s to around 5–7% by the early 2020s. This represents a structural change in the market that simply had no precedent in the earlier decade.
Home Price Trajectory
Home values in Maine were fairly flat or modestly rising in 2008–2017, then skyrocketed in 2018–2023. During the Great Recession (2008–2010), Maine’s home prices fell – e.g., the median dropped from $194k in 2007 to $180k in 2008.
Throughout the 2010s, prices inched up with the recovery; by 2019 the median sale price was about $234k, roughly a 30% increase over 11 years. But from 2019 to 2022 alone, the median leapt from $234k to $335k – a 43% jump in just 3 years.
By 2024 the median reached ~$390k (73% higher than 2019). Such rapid appreciation far eclipsed anything seen in the earlier decade. High-income demand was a big part of this spike: while low interest rates and limited supply also fueled price growth, the influx of cash-rich luxury buyers pushed Maine’s median upward significantly.
In a small market like Maine’s, “it only takes a few [high-priced] sales to make a big impact” on average prices, and the 2018–2023 period had more than a few.
Migration Patterns
The 2008–2017 period saw relatively little population growth in Maine. The state’s population was stagnant or shrinking slightly in some years as young people left for jobs elsewhere and in-migration was low. The share of out-of-state homebuyers was fairly steady (around one-quarter or less of sales), mostly people buying second homes as usual.
In 2010, for example, many luxury buyers in Maine were long-time seasonal residents or retirees with ties to the state – not a sudden new wave. By contrast, 2018–2023 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.
The out-of-state buyer share climbed to one-third, and crucially, their profile shifted to include more working-age, highly paid individuals (not just retirees). The concept of people moving to Maine for jobs or remote work was virtually unheard of in 2008–2017, whereas by 2020–2023 it became common. This new demographic influx of wealthy outsiders is a hallmark of the later period, distinguishing it from the relatively insular market of the earlier decade.
Economic Context and Drivers
In the late 2000s, Maine’s housing was constrained by the financial crisis – high-end buyers were limited as portfolios and confidence were down. The early 2010s saw slow recovery; interest rates were low, but lending was tighter post-crisis, and there was no external trigger drawing rich buyers to Maine en masse.
Most boomer homeowners were in their peak working years then and weren’t yet retiring to Maine in huge numbers. In 2018–2023, a very different set of circumstances unfolded: a combination of historically low interest rates (through 2021), the COVID-19 pandemic, remote work technology, and strong stock market gains gave high-income households both the means and motivation to purchase property in Maine.
Additionally, policy changes like the SALT deduction cap (2018) and high pandemic-era savings for the wealthy made buying second homes more attractive. Climate considerations also became more prominent toward 2020s. None of these factors were present or impactful in 2008–2017 to the degree they were later.
In summary, the 2018–2023 period was dramatically more active and bullish in Maine’s high-end real estate market than the 2008–2017 period. The recent five years brought a flood of external demand, rapid price escalation, and record luxury sales – a “real estate renaissance” fueled by quality-of-life seekers and remote wealth.
The prior decade was comparatively quiet: a time of recovery and normal cyclic activity, with Maine’s market largely driven by locals and longtime seasonal residents. The contrast can be encapsulated by median price stats: Maine’s median home price rose only ~25% from the depths of 2008 to 2018, but then jumped over 50% in the next five years alone (2018–2023).
Likewise, whereas a million-dollar sale in 2010 would have been front-page news, by 2023 such sales happened almost every day. Maine’s housing landscape for high-income buyers has truly transformed from the 2008–2017 era to the recent boom – a transformation that may have lasting effects on the state’s communities and economy.
References
- Portland Press Herald – More and more Maine homes are selling for millions of dollars
- Mainebiz – Maine’s out-of-state homebuyers came from these states last year
- Down East Magazine – Three Charts That Explain Maine’s Surging Real Estate Prices
- Redfin (Press Release) – Redfin Reports A Record Share of Homebuyers Relocate, Driven By Moves Away From Expensive Coastal Areas
- Bangor Daily News – Maine was only state to gain income from pandemic population shifts
- Maine State Housing Authority – State of Maine Housing Production Needs Study
- Tax Foundation – County Data Shows Repealing SALT Cap Would Benefit High-Income Earners
- National Association of Realtors – 2023 Home Buyers and Sellers Generational Trends Report
- CNBC – How much money you need to earn to be in the top 1% in every US state
- Homestratosphere – Baby Boomer Real Estate Trends in Maine (2018–2023)
- Mainebiz – In a frenzied home-sales market, Maine records its highest sale price in three years
