Conclusion
Maine is facing a major housing crisis, and many policymakers are responding to the problem created by troublesome regulations by doubling down on housing regulation. As long as this approach serves as policymakers’ response to high housing costs, we will continue to see the unaffordability feedback loop worsen. The reality is that the best examples of cities and states combating their housing crisis are those that work toward deregulation rather than more regulation. Maine is now at a crossroads where it can become more expensive, like many cities in California, or it can decide to increase affordability by reducing regulatory burdens, such as in Austin, Texas, Minneapolis, Minnesota or Salt Lake City, Utah.
This report does not conclude that Maine should have no housing regulations whatsoever. However, in the past few years, policymakers have been increasing the number of housing regulations, especially in many of Maine’s larger cities. It is no coincidence that this was simultaneous to one of the larger drops in housing affordability and availability. However, if Maine does its best to remove regulatory barriers to housing production, the market will respond quickly by increasing housing supply to meet demand better. Many other states – red, blue, or purple – have already done this effectively.