Portland, Maine: the leading luxury market in the U.S., thanks to steady housing demand in the Northeast.

After more than three years of migration to southern states, U.S. luxury home buyers are turning their eyes northward. More specifically, to northern Maine. In the third quarter of 2023, Portland, Maine ranked as the top metro-region favored by luxury homebuyers according to the Emerging Housing Markets Index created by The Wall Street Journal and Realtor.com and released Wednesday.

First place for Portland, Maine

Not long ago, it was in sixth place. The region of Providence-Warwick, Rhode Island ranked fourth in that ranking. Realtor.com Chief Economist Danielle Hale says the markets around Boston tend to do well. She says Portland is highly dependent on what happens in Boston. The ranking results show that Portland and Providence have strong demand that is independent of the supply of housing in those neighborhoods.

Top 10 cities in the ranking

In general, having studied the top 10 cities of the rating, we can conclude that they combine different advantages, which is interesting for everyone. At the same time, popular destinations are mostly characterized by relative affordability, slow pace of life and availability of various amenities: stores, restaurants, transportation and open spaces for outdoor recreation - from ski resorts to beaches. Each quarter, this ranking includes real estate market data for the top 10 percent of the 60 metro-regions, which takes into account real estate market information and other economic indicators. Indicators such as housing supply and demand, median asking price, cost of living index, number of small businesses, local property taxes, amenities, unemployment rate, wages and foreign-born share influence the rankings of the most active luxury housing markets. Other cities in the top 10 include Boulder, Colorado, which relinquished the first position and ranked second; San Diego and Carlsbad, California, ranked third in the rankings; and St. Louis, Missouri, ranked fifth. The regions around San Jose and Los Angeles, California, ranked sixth and seventh, respectively, followed by Wilmington, North Carolina in eighth place; Detroit, Warren and Dearborn, Michigan, in ninth place; and Dallas, Texas, in tenth place.

Advantages of Portland, Maine

Experts note that Portland offers plenty of activities and opportunities, whether it's coastal walks, great food, or the cultural scene of Maine's largest city. Many Portland movers come from Boston or Brooklyn (Realty.com data). They are attracted to the "simpler and easier" lifestyle the city has to offer.

The lifestyle is said to be the region's greatest asset. The city has plenty of outdoor activities, restaurants and museums are steps away from housing that can be purchased new or in converted buildings. There are also surrounding Portland cities such as South Portland, Cape Elizabeth, Falmouth, Yarmouth, Camderland, and Freeport that are home to many commuters. In Portland, you can maintain an urban lifestyle but still enjoy a variety of outdoor activities such as biking, kayaking, hiking, and sightseeing trips to city and state parks. The city is also known for its fine dining - fresh octopus and other seafood, farm-to-table restaurants with renowned chefs. This, along with other attractions, draws many home buyers to the region.

Real estate prices in Portland

Maine Resident Agency founder, Kathy Hogan, notes that many applicants to buy a home in Portland have some connection to Maine, whether it's childhood, summer vacations or college. Others have summer homes on the coast and are looking at the possibility of living in the state permanently. Many who choose Portland also retain an urban lifestyle and have access to modern outdoor activities such as biking, kayaking, hiking, and lake trips. The city is also known as a gourmet center for its fresh seafood and farm-to-table cuisine and renowned chefs. This, among other attractions, attracts many home buyers.It's worth noting that despite the rising real estate prices in Portland, the region remains relatively affordable compared to Boston, New York or Portsmouth (Hampshire), another coastal city that is an hour south of Portland while still within a day's commute to Boston. The average home price in Portland is around $497,700, while the price of a luxury condo with three bedrooms and luxury amenities is around $1.8 million to $2 million. About 70% of condo buyers are retirees who value aspects such as walkability, accessibility to entertainment and volunteering with local organizations. Most of them choose the city over a condo on a golf course. Those looking for a home outside of the center can

Mobile homes in Portland

As in other U.S. markets, mobile homes in good condition, ready to live in, are selling fast. That means they are equipped with modern kitchens and bathrooms, spacious luxury bedrooms, are located in walkable neighborhoods, and ideally have water views, according to Kathy Hogan.