It’s all connected

Housing is an economic development issue.

Can we hire the people we need to keep our schools, businesses, town governments, organizations, and institutions running? Can we staff the hospitals, clinics, doctors offices, and EMS crews? Can we house families that will want to build or maintain roots? Can entrepreneurs just starting out or looking to grow their business establish themselves in our communities?

Where do people live in relation to their jobs? How far are people willing to travel for work? What mode of transportation do they use to get to and from their place of employment? What does that commute feel like during peak tourism season for workers, residents, and visitors?

Housing is a transportation issue.

What are the climate impacts of people traveling increasingly longer distances between their jobs and homes? Or between their homes, errands, and social or medical services?

Housing is a climate issue.

The U.S. Census reports that there are 16,146 housing units on and around MDI (four MDI towns, Trenton, Lamoine, Swan’s Island, Ellsworth, and the Cranberries, 2020 Decennial Census). Of that number, almost 6,000 are vacant. The most common housing type in the MDI Region is older, single-family detached homes that are predominantly owner-occupied. Click the blocks below for more data points.

MDI Region Housing Numbers

  • Approximately 67.9% of the housing of the four towns on the island is owner-occupied, while approximately 32.1% is renter-occupied (2020 Decennial Census). There is a need for more rental housing to meet demand for both seasonal and year-round renters.

  • There is a shortage of multi-family units, as approximately 80% of occupied housing units on MDI are detached, single-family units (2020 Decennial Census). There is an opportunity to create more multi-family housing where appropriate through the review and updating of municipal land use codes and by supporting the pre-development work of area non-profits that have stated goals of building multi-family housing.

  • The MDI region is a net importer of workers from Hancock County and the surrounding area. Approximately 7,100 people live elsewhere and commute into the MDI region (MDI and Acadia Region Housing Study - forthcoming). The volume of people commuting on to the island causes increased traffic congestion and climate impacts.

  • According to the 2020 Decennial Census, 42.3% of homes on MDI are vacant, and of those that are vacant, 82.3% are vacant because they are used for seasonal, recreational or occasional use (2020 Decennial Census). While the Acadia Region has always been a popular tourist destination, the steady conversion of year-round homes to vacation rentals over the last decade or more, coupled with numerous factors like the lack of new home construction, means that the percentage of vacant housing has increased and availability of non-vacation homes has decreased. Any new homes built in communities without short-term rental regulations are at risk of becoming vacant for vacation rental use and not adding to the housing supply.

  • According to MaineHousing's Affordability Index, in 2023 over 90% of the households in all four towns on the island were unable to afford the median home price (MaineHousing). Those earning 200% of the area median income now struggle to find affordable housing in the MDI area housing market, both for purchase and for rent.

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Why is this happening?

Like many areas across the country, housing is increasingly scarce on Mount Desert Island due to a variety of factors, including market dynamics, regulatory forces, the high costs of construction, inflation, labor shortages, residual fallout from pandemic supply chain issues, and low interest rates during the pandemic spurring a surge in purchases of primary and second homes. The Mount Desert Island area faces additional pressures due it its desirable location, limited land availability, limited public infrastructure, and a historically hot second-home market and, now, increasingly hot short-term rental market.

The result is that our housing stock is often unaffordable to year-round households and unavailable for seasonal workers. These issues are having ramifications on our communities and our island-wide economy. Major employers struggle to attract and retain workers, businesses are unable to stay open on a regular schedule, and service delivery of municipal and healthcare services are strained.

A residential street in the village of Bar Harbor with a mix of year-round homes, seasonal homes, and weekly vacation rentals.

Why this initiative?

The MDI Housing Solutions Initiative strives to create a framework for addressing the ongoing need for different types of housing on MDI, to bring potential partners together, and facilitate a dialogue about island-wide housing and economic issues. Housing will always be a challenge on MDI and this project seeks to foster collaborative, community-driven solutions through facilitated meetings, forums, workshops, public outreach, cultural sector projects, policy changes, and the identification of new funding sources and mechanisms.