New Maine Program Is Paying Homeowners Up to $10K To Build an ADU in Their Backyard

Homeowners in three Maine cities are being offered up to $10,000 to build an accessory dwelling unit, to expand housing in the state’s midcoast region.

The ADU Boost Pilot Program aims to build more housing units in these areas to address Maine’s housing shortage.

"We are piloting the program in the region's three most urban and densely populated communities: Rockland, ME; Bath, ME; and Brunswick, ME," Alexis Mann, senior policy strategist of Midcoast Council of Governments, tells Realtor.com®.

The program offers homeowners a grant of up to $10,000—equal to 10% of eligible costs—for building an ADU.

"The overarching goal of the program is to create a continuum of support for residents that allows them to seamlessly move from thinking about building an ADU through to financing and construction," says Mann.

Mann says the program will help Maine homeowners stay or age in place by creating a supplemental stream of rental income and creating more economic security and stability.

"A well-designed ADU can increase a property's value significantly," Whitney Hill, co-founder and CEO of SnapADU, a leading ADU design-build firm, tells Realtor.com.

The addition of these units will also make it easier for employers to find and keep workers, according to Mann. "The creation of more long-term rental units will allow young workers to secure suitable housing."

Based on what is learned from the pilot, the program could be scaled to other Maine cities and eventually the whole state.

Bath real estate agent Nancy Carleton, of Vitalius Real Estate, says this is a great thing for the region.

"Bath is an old shipbuilding city with beautiful, big houses that have the space to build ADUs," she says. "This would allow residents to stay in their homes as they get older and be able to afford their mortgage and their utilities. It's good for the area, and it just makes sense."

"Maine, like much of the Northeast, is experiencing an inventory crunch. The number of homes for sale has still not recovered completely from the post-pandemic shock, and as more Americans are becoming interested in buying homes there, it's clear that the state faces a shortage of housing," Joel Berner, senior economist at Realtor.com, explains.

"ADUs are a great way to increase urban density and the number of available homes, so it's encouraging to see this being encouraged. Current homeowners, if they're willing to sacrifice a bit of space, can boost the value of their property with an ADU and welcome new neighbors to the state."

Maine's affordability crisis

The state earned a C on the Realtor.com State-by-State Housing Report Card, part of the Let America Build campaign, which evaluates how states balance affordability and new construction.

Strong demand, coupled with Maine’s scarce housing inventory and sluggish permitting, has fueled rising prices and squeezed affordability.

In 2024, the median listing price hit $440,523, compared with a median household income of $71,476—highlighting the ongoing affordability gap for middle-income buyers. It hasn't shown much of an increase with the November 2025 median list price at $440,900.

Other states have embraced ADUs

Similar ADU initiatives have helped alleviate housing pressures in other states.

As part of former Mayor Eric Adams' "City of Yes" housing package, New York City recently legalized accessory dwelling units in certain neighborhoods across the five boroughs.

The reform is expected to result in about 20,000 ADUs over 15 years in backyards, converted garages, basements, and attics.

California is also embracing ADUs as a strategy to help address the state’s housing shortage.

In July, San Francisco joined Berkeley and San Jose by allowing homeowners to sell in-law units in their backyards as separately owned condos—a policy shift aimed at easing the cities’ housing crunch.

"Many San Francisco homeowners are long-term owners who purchased their homes years ago and have no plans to relocate in the near future," says real estate agent Ying He, of BarbCo in San Francisco. "This legislation could benefit homeowners who are 'house rich but cash poor' by enabling them to unlock equity in their primary residence without selling the entire property."

According to He, this approach could help increase housing supply and improve affordability.

"San Francisco remains one of the most challenging markets for first-time homebuyers, and these changes could potentially lower the barrier to entry by creating smaller, more attainable ownership opportunities," she says.

As ADUs gain popularity, new-home builders are constructing homes with ADUs nationwide.

Lennar builds townhomes starting at $417,990 with a "Next Gen" ADU-like suite, which is an attached private suite with its own entrance, living room, kitchen, bedroom, and bathroom.