Maine’s capital city and the smaller towns around it continue to lead the state in projected home value growth.
Lower prices, historic undervaluation, infrastructure improvements and steady demand for low housing inventory outside of southern Maine have all contributed to Augusta-area communities like Vassalboro, Readfield, Farmingdale and Randolph being expected to see the highest growth in average home values by April 2026, according to Zillow data.
“What we’re seeing really isn’t a spike, it’s a market correction,” said Keith Luke, Augusta’s economic development director. “People are realizing they can get strong city services, reliable infrastructure and good schools at a cost that remains attainable.”
Of the top 15 cities and towns by projected growth, 13 of them are in the Augusta area. Average home values in the city proper now are just under $279,000, and they are expected to rise 2.4 percent by this time next year, Zillow found. In Portland, the average value is about $574,000 and expected to increase at only half Augusta’s rate.
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The stark price differential between those cities an hour apart has led prospective homebuyers north, said Portland realtor Tom Landry. That’s particularly the case for first-time homebuyers. Though they’re rare and snapped up quickly, there are quality starter homes priced between $200,000 and $300,000 for sale in the Augusta area that are impossible to find down south, said Matt Pouliot, a former legislator and owner of the Augusta-based Pouliot Real Estate.
“Places exactly like greater Portland haven’t seen a home of reasonable price in a desirable neighborhood in years,” Luke echoed.
The data reflects that sentiment. The median price of a single-family home for sale in Portland fell last month by 18 percent. In Augusta, prices increased by 8.5 percent. That reflects a dynamic wherein southern Maine’s market is leveling off while central Maine is still seeing steady growth. Both Bangor and Lewiston are both expected to see home values increase in the next year at a higher rate than Portland, Zillow found.
“You’re going to get a lot more for your money,” Landry, broker owner of Benchmark Real Estate, said of the region. “Those communities are changing. They’re more walkable, have more restaurants and things. We’re seeing a lot of Mainers move from here up to those spots.”
There are other reasons Augusta and its surrounding, commutable communities are seeing a steady growth in values. The city has a stable labor market dominated by state government and MaineGeneral Medical Center. It’s also centrally located, which buyers find convenient, and near recreational opportunities like the Belgrade Lakes region and the Kennebec River, Pouliot said.
“It’s an area that is surrounded by lakes, a 45 minute drive to the coast, or less than an hour to the mountains,” he said. “That’s a lot of recreational opportunities at your fingertips without having crazy high prices.”
The city and its satellite communities are also enjoying a steady appreciation in home values because of its recent investments in housing production. Pouliot, who also develops new housing, also noted it is far easier to build in Augusta than in Portland.
In the last two years, Augusta has approved more than 400 housing units, Keith Luke said. Portland has approved over 1,150 units in that same time frame, but only 76 of those have been ownership rather than rental units, according to a city dashboard.
“It’s very difficult to build here,” Landry said. “Even if [units] are approved by the planning board, they just don’t pencil out, so we’re not seeing a lot of inventory.”
