Broker report: Midcoast region experiencing intricate dynamics since 2020
Photo / COURTESY THE BOULOS CO.
Despite hurdles like affordable housing shortages and an aging labor force, the midcoast region's allure persists, according to a broker update. Here, a vintage downtown Camden building checked all the boxes for a local investor. The transaction was arranged by Dan Greenstein, Sasha Phillips and Noah Stebbins, all of the Boulos Co.
The midcoast region’s real estate market is experiencing intricate dynamics since 2020.
That includes population growth driven by retirees and remote workers, contrasting with the challenge of aligning demographic shifts with economic development.
That’s according to a midcoast market update by Roy Donnelly, an associate broker with the Boulos Co.
Despite hurdles like affordable housing shortages and an aging labor force, the region's allure persists, buoyed by its coastal charm and traditional industries like aquaculture and boatbuilding,” Donnelly wrote.
The midcoast region benefitted from relocation trends spurred by the pandemic and a subsequent run-up in values, he said.
Population growth rates between April 2020 and July 2022 in four midcoast counties equaled or outpaced that of Cumberland County, which grew at 1.4%.
- Knox County, home to Camden and Rockland, grew at 1.4%;
- Waldo County, home to Belfast, grew at 1.6%;
- Sagadahoc County, home to Topsham and Bath, grew at 1.9%;
- Lincoln County, home to Damariscotta and Waldoboro, grew at 2.8%.
Many new residents are retirees or remote workers.
“While in-migration is beneficial, the demographic makeup of those moving to the Midcoast does not necessarily align with employers relocating, or retailers viewing the region as a hub of consumption,” Donnelly wrote.
However, he continued, the region benefits from tailwinds such as continued residential interest, tourism and hospitality, and the continued success of legacy industries such as fishing, aquaculture and boatbuilding.
Additionally, national interest helps to underpin midcoast activity, said Donnelley, who cited the opening last summer of a Barnes & Noble bookstore in Brunswick, DuPont Nutrition USA Inc.’s lease renewal of its 88,000-square-foot carageenan operation in Rockland and continued activity in Belfast by Athenahealth Inc. (NASDAQ: ATHN).
“As with much of the state, continued development on the midcoast will be tempered in the short-term by the increased cost of debt and in the medium-term by an aging workforce with many skilled tradespeople retiring,” Donnelly wrote. “However, as Portland and Cumberland/York counties continue to approach their carrying capacity, the way of life that exemplifies Maine can still be found heading up the coast on Route 1.”
To read the full report, click here.
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