The story of real estate in Maine in 2025 was mixed, but overall trended downward, according to the 20th edition of the Maine Real Estate and Development Association’s annual Index.
The barometer measures various components of the state’s real estate industry to track market changes and combines those findings into one number, referred to as the MEREDA Index.
The index has measured the industry quarterly since 2006. This latest edition covers the market through the fourth quarter of 2025 and shows an overall market decrease of 3.7%, between 2024 and 2025.
Some ups, some downs
The downturn was primarily in commercial real estate — which dropped 8.6% — due to lower sales prices and rental rates, the study finds. There was a small drop in the number of transactions, but the total square footage in transactions increased by nearly 20%.
The residential market showed modest growth of 2.6%. Home prices continued the upward trend, though sales of existing units were essentially unchanged. The number of permits for new housing fell by 10% and mortgage originations declined slightly.
Those trends mirror the national housing picture, the study notes, though median prices in Maine are below national median prices.
Construction employment was largely unchanged, suggesting continued tight supply into 2026.
The 2026 Index was prepared by economist Charles Colgan, and is available to download on the MEREDA website.
