A study of housing in Hancock County turned up what one would expect—too few houses available for entry level buyers and a dearth of rental housing for the same population.
But the 250-page “Hancock County Housing Needs Assessment” contains a wealth of data about individual areas.
The report was compiled by the Hancock County Planning Commission (HCPC) over the course of a year and is now available to local, state and planning officials as well as other interested parties.
“The biggest take away is there is an under supply of units,” said Greg Piduch, HCPC regional planner and author of the study.
“Housing prices are increasing faster than median incomes and are contributing to a lack of affordability for housing. A limited supply also drives up the price.”
It is estimated that up to 3,700 housing units are needed in Hancock County by 2030…
“While not alone, the county faces a number of obstacles that impact the affordability, availability, and location of housing,” he said. “Wages in some of the most prominent industries do not meet the amounts currently needed to live comfortably and median household incomes are not keeping pace with the rise of the median home price.”
Piduch said the goal of the report was to help municipalities make housing decisions and serve as a resource for municipal officials, planners, employers, developers, financers, and other housing stakeholders.
It is estimated that up to 3,700 housing units are needed in Hancock County by 2030 to account for historic underproduction and future demand. “By establishing targets for production and staying on track, this goal can be achieved,” he said.
Discussing other data, Piduch said short term rentals exist across Hancock County, to varying degrees.
“It’s estimated 11 percent of the housing in Hancock County are short term rentals,” he said. “That eats into the year-round housing stock.”
On the plus side, Piduch said, more building permits have been issued in recent years for single and multi-family housing—the highest number in the past decade.
One surprise was the finding that one third of the employees in Hancock County are in the retail and food service industries and earning incomes that are unlikely to make it possible for them to purchase homes at current prices.
There is a scarcity of year-round rentals as well, said Piduch. He conducted a survey of multi-family housing in Hancock County.
The survey included 1,100 rental units and 40 different properties.
“Nearly every single property was completely occupied or had a waiting list,” he said. “There were a total of three vacancies. The numbers really tell the story.”
The study includes analyses of demographics, economics, mobility and transportation, community services, short-term and vacation rentals, housing market and gap, as well as development trends, housing equity, and priority actions.
It is noted in the study that Hancock County is projected to grow to a population of just under 57,000 by 2030, up from 55,478 in 2020.
The number of households in the county are projected to grow, along with the median age. The average household size, according to the report, continues to get smaller. Housing units in Hancock County are predominantly single unit and owner occupied.
Aging residents, combined with lower incomes, limited rental availability, and a lack of nursing homes also present challenges in the future in providing enough housing for the elderly, it was noted in the study.
And, as expected, the lack of municipal sewer and water in many towns is a roadblock to construction.
“The natural landscape and rural nature of the county limits where development can take place,” Piduch said. There are inevitably higher costs to access or expand infrastructure and utilities, which is why many of the new building permits have been issued in Ellsworth and Bar Harbor, where municipal water and sewer are more readily available, he said.
Among the suggestions contained in the report is that smaller municipalities establish partnerships with local, regional, and state entities to help find opportunities for funding as well as other resources.
The report also recommended establishing goals and metrics to track a community’s progress in creating housing and working with developers to help address elevated land values, construction costs, and a shortage of skilled labor.
