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🔒Turning the tide: How climate change is reshaping waterfront development in Maine

From Maine’s coast to inland rivers, private developers and others are building with an eye to a stormier future. They see it not just as a challenge, but as an opportunity to innovate.

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Residential market in flux

Dava Davin FILE PHOTO / TIM GREENWAY

Outside the commercial realm, the increasing severity and frequency of storms and other weather disasters are also shifting Maine’s residential real estate market.

“The recent flooding events have stirred some changes in waterfront homeowners’ and potential buyers’ behaviors,” says Dava Davin, founder of the Portside Real Estate Group, a Falmouth-based agency with offices in coastal Maine and New Hampshire. “We are seeing homeowners who were flirting with the idea of selling, having the recent events be the catalyst for reaching out to put their homes on the market this spring.” 

It’s not just along the coast, either.

“We have seen renters in riverfront homes that have flooded, that have had enough,” she notes. “Additionally, buyers are becoming more cautious, seeking properties with water views and access, but not necessarily direct frontage.”

Similarly in Union, broker Les Taylor of Waterfront Properties of Maine reports that the price of all properties along lakes, ponds and along the coast has been on the rise.

“All the good ones have already been built upon, so mostly the ones left are not that desirable,” he says. “If you do manage to find a waterfront property at a reasonable price, by the time you add a road, electricity, a septic system on top of building a house, it’s very easy to get upwards of $1 million.”

Rising flood insurance rates

Portrait
Timothy McGonagle PROVIDED PHOTO

As weather events become more common and severe, the costs of flood insurance are expected to rise everywhere.

“Prior to 2023, flood insurance rates were the same throughout the country, regardless of risk,” says Timothy McGonagle, a partner and senior vice president at United Insurance, a Portland-based agency that writes policies for Maine-headquartered businesses in more than 30 states.

“With so many weather events last year, that’s changing so that businesses and homes located close to the water and/or with a history of flooding will be paying more,” he says.

McGonagle’s advice to anyone looking to buy waterfront land in Maine today on which to build, is to contact their insurance agent as early as possible, saying, “The days of calling your agent at the end of the buying process to simply put coverage in place are over.

“Looking ahead,” he adds, “we expect Maine to be like Cape Cod, where annual flood insurance premiums are disclosed in real estate listings so prospective buyers can factor them into the cost of ownership.”

As United Insurance agents educate clients on their options, it is generally only property owners who are required by loan terms that purchase flood insurance, he says.

“The reason most decline flood insurance, is they consider it an unnecessary expense and not a potential risk that justifies the additional premium,” he notes.

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