SCARBOROUGH, Maine — As Maine confronts one of the nation’s most severe housing shortages, a newly passed law is positioning everyday homeowners as part of the solution. LD 1829, set to take effect next summer, expands the ability to build accessory dwelling units (ADUs) and increases allowable density on lots statewide — a major shift advocates say will cut red tape and increase much-needed supply.
The law establishes uniform statewide rules, requiring every municipality in Maine to allow at least three dwelling units per residential lot, including ADUs. In designated growth areas with water and sewer infrastructure, that minimum increases to four units per lot.
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“We are making it easier to build this housing,” said House Speaker Ryan Fecteau, who sponsored the legislation. “We have started to peel back that red tape that has prevented people from being able to build housing in the first place.”
MaineHousing estimates the state needs 80,000 additional homes by 2030 to meet demand. That pressure has pushed state leaders to look beyond large-scale developers.
“Property owners, people who own their own land, should be able to build housing to help solve this crisis,” Fecteau said. “People in the legislature and across the state want to see everyday Mainers be part of our solution to housing.”
The rules now:
Reduce minimum lot sizes
Prevent towns from applying tougher height and setback rules to multi-unit projects
Remove planning board review for projects under four units
Allow ADUs without requiring the property owner to live on the lot
Housing advocates say those changes will speed up approvals and reduce costs, particularly in communities where zoning has historically limited growth.
Companies like Backyard ADU, based in Brunswick, are already seeing strong demand. Since 2020, the modular builder has installed more than 120 units and now completes roughly one every week.
“It creates a grassroots approach to solving the housing crisis,” co-founder Chris Lee said. “So would you rather have 1.3 million Mainers working on the solution or 15 developers?”
Lee said the modular approach — building most of the structure in a factory — keeps labor needs lower and delivery faster. Typical completion time runs nine months to a year, with two-bedroom units starting around $300,000 depending on finishes.
Co-founder Austin Gregory said statewide consistency will reduce delays:
“Having these state laws as a guide for those municipalities where we can, look to them and say, ‘Hey, no, we can do this,’ is huge,” Gregory said.
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As Maine’s median home price surpasses $402,000, more families are using ADUs as a stepping-stone into homeownership — or as a way to stay close while reducing costs.
“They are subbing as starting homes,” Lee explained. “We have built for kids in parents' backyards as a starter home.”
The trend also works in reverse.
Mainer Regina Momnie chose to downsize by building an ADU near her daughter and grandchildren:
“Now they're amazing human beings and amazing parents, and it gives us joy to see that as much as we can,” she said.
Even with the law’s benefits, builders say affordability is still a challenge. Financing, construction labor, and local restrictions on reselling ADUs (known as “condo-ization”) can limit investment. Some appraisers also fail to include ADUs when valuing property — another hurdle for homeowners.
Still, interest is rising. Backyard ADU says ADUs now make up one in five new residential permits in states like California — a sign of what could soon happen in Maine.
Despite resource limitations, the company expects to become one of Maine’s largest home builders in the next few years.
While LD 1829 alone won’t solve the housing crisis, lawmakers and industry partners say it gives residents a long-awaited opportunity to add options in their own communities.
“It’s not relying on the 15 developers in Maine to get it done. It’s relying on all the homeowners to do it,” Lee said.
As the law takes effect, Maine officials hope backyard-scale growth becomes a statewide movement — one new ADU at a time.
Originally reported by News Center Maine.
