New high end development in Houlton helps fill housing gap

HOULTON, Maine – Four Houlton entrepreneurs created their own development company when Southern Maine contractors wouldn’t head north to build houses after a COVID-19 home sales rush depleted the town’s housing supply.

“There were no houses for sale,” said Jerry York, one of Houlton Housing ’s owners.

Along with the Southern Aroostook Development Corp . York and others tried to find a contractor to build a bunch of houses, he said.

“We contacted builders in the Bangor area and the Portland area and they said, ‘we are not going to come to Houlton, we can’t build enough houses down here,’” York said.

That’s when local businessmen York and Douglas Callnan along with Peter Chase, a retired contractor, and Albert Fitzpatrick who farmed the land they developed for 50 years, pooled their expertise and resources to develop North Meadows on eight acres off North Street.

The first home of their 8-unit subdivision, 15 Lilac Lane , is completed and on the market for $549,000 with a second unit currently under construction.

Local builder Randy Moleon and his crew are building the homes and co-owner Chase, who founded Buildings Etcetera, Inc ., is overseeing the project.

Since the pandemic drastically changed Houlton’s real estate landscape, the demand for properties in Southern Aroostook continues as people look for more space, remote work opportunities, and a higher quality of life away from crowded urban centers, according to Johanna Johnston, executive director of the Southern Aroostook Development Corp.

“The market has remained relatively tight due to the high demand and limited inventory,” Johnston said. “However, we are starting to see some new developments and renovations that are slowly beginning to open up more options for buyers.”

The North Meadows development, with homes ranging from $400,000 to over $500,000,  is somewhat of an outlier for Houlton with average 2024 home sales prices at $158,300.

But Johnston said that higher-end housing projects have significant potential to draw new businesses.

“When executives and professionals consider relocating, they look for high-quality housing options,” she said. “Providing these can make our area more attractive to companies considering expanding or relocating their operations here, leading to job creation and economic diversification.”

North Meadows developers purchased the land from the Putnam Trust at about $15,000 an acre, said York. And while the subdivision is zoned for eight homes, they hope to expand in the future, Callnan said.

As part of North Meadows development, they had to first put in roads, water lines, sewer and power, York said.

Prior to designing 15 Lilac Lane, they talked with local and County realtors to find out what homebuyers are looking for, they said.

Local realtor Andy Mooers said that when prospective buyers call, what they are looking for differs.

Some want a home with land for horses or to have acreage so their kids can build someday or their elderly parents can be close but independent, he said, adding that often retired folks want one floor economical homes near health care and shopping.

“Blended families need more than three bedrooms, some want a house with an income-producing apartment to help make the house payment,” he said. “In Aroostook County, local people want common sense practical things like a good roof, low operating cost and affordability.”

North Meadows’ developers settled on three to four bedroom homes with two-plus bathrooms and an open concept floor plan. The homes in the subdivision will be heated and cooled with heat pumps and no basement furnace or boiler. Although there are back-up electric heaters for nights that get too bitterly cold for the heat pump to keep up with, York said.

Mooers recalls in the 1960s to 1980s when Houlton streets were dotted with USDA/Farmers Home Administration simple three-bedroom ranch homes that people bought with $1 down and a subsidized payment.

The town’s unprecedented real estate sales boom drove up property values, tightened the real estate market and drove land sales up 33 percent with many people looking to build their own homes, Mooers said.

But the greatest need right now is for diverse housing options, according to Johnston.

This includes affordable housing for low to moderate income families, as well as higher-end housing to attract professionals and retirees, she said.

“We need a balanced approach to ensure that everyone can find suitable living arrangements,” she said.

Along with North Meadows there are other housing options popping up including an 18-unit rental property on Smyra Street in Houlton for low to middle income people.

“They are in the process of being built,” said property manager Kerry Simpson of WLR Property Management . “They are replacing a 14-unit property that was destroyed in a fire.”

Simpson said they are waiting to hear about a Maine Housing Grant that would help significantly.

When completed, the rentals, from studios to three bedroom units, will have elevator access and the latest technology, he said.

Johnston said another notable new development is Cameron Clark’s Green Street project of duplex rental units priced at about $1,100 a month.

“Cameron has successfully navigated the planning board process and has completed Phase One of the project,” Johnston said. “He is currently working on Phase Two, which will provide eight additional units upon completion.”

Additionally, new properties have also been built in the Hodgdon area, contributing to the overall growth and development of housing options in the region, she said, adding that these projects are vital steps in addressing the housing needs and enhancing the community’s living standards.

Johnston and the SADC is actively working on several fronts to address housing needs, she said, pointing to collaborating with Aroostook Partnership and the Genesis Fund to identify opportunities and educate developers on available funding programs.

New housing developments can be transformative for the region, she said, adding that they also create construction jobs and a demand for local services.

“For example, the new North Meadows development project is using all local contractors for everything from earthwork to electrical and plumbing,” she said. “That keeps the funding in our local economy.”