The vacation rental market in Maine is experiencing a mixed performance. After a surge in demand during the pandemic years of 2021 and 2022, the summer of 2024 has seen a slowdown. Occupancy rates have decreased by about 10% compared to the previous years, aligning with a national trend where supply growth is outpacing demand.
The number of short-term rental listings in Maine has increased significantly, with a 45% rise in just three years, from around 14,800 listings in June 2021 to approximately 21,500 listings recently. This growth is particularly pronounced in tourist-heavy areas.
Despite the overall decline, certain regions in Maine are performing better. Areas around major tourist attractions and recreational sites, such as the Sugarloaf ski resort, continue to see strong demand. The western Maine mountain region, for example, has seen increased summertime activities, keeping properties filled even during what used to be slower periods.
Average daily rates (ADR) have been relatively stable, with some fluctuations. In the summer of 2024, rates were only a few dollars higher than the previous year. However, strategies to book shorter stays (e.g., 3-night stays) are showing promise in increasing the average daily rate for some properties.
Maine is also seeing regulatory changes impact the vacation rental market. Some areas, like Bar Harbor, have implemented moratoriums on new rental licenses, limiting inventory. Additionally, cities and towns with scarce housing inventory are cracking down on short-term rentals to address local housing needs.
Despite the challenges, the tourism industry remains a significant contributor to Maine's economy. The state's strategy to market its value and experiences continues to attract visitors, supporting the vacation rental market.
