A new report from MaineHousing paints a mostly rosy picture of the state of the housing crisis, with progress being made in affordability and efforts to prevent homelessness.

Daniel Brennan, director of the quasi-governmental agency, said in the group’s 2025 annual report that the state is poised for another year of progress, despite challenges such as a delay in distributing federal heating assistance during the end-of-year government shutdown.

“MaineHousing is strategically positioned and energized to advance our newly updated mission — empowering staff and partners to help Maine people afford safe, high-quality housing,” Brennan said in the report.

Here are five takeaways.

1. MaineHousing saw a record number of first-time homebuyer loans.

The purchase of 1,274 first-time homebuyer loans through MaineHousing’s First Home Loan Program marked a record for the agency. It said that’s a reflection of strong demand and the agency’s ability to better support new homebuyers despite challenging market conditions.

The First Home Loan program provides low, fixed-interest rate mortgages with little or no down payment required. The average mortgage last year was about $250,000.

2. New affordable housing projects were completed, and more are in the works.

A total of 21 affordable housing projects, representing 656 units, were completed last year through coordinated state investments and strategic partnerships, according to the report.

Major new projects were also started. Last April, MaineHousing announced funding for 137 affordable rental homes across rural Maine that will serve households earning up to 80% of the area median income. And in November, Gov. Janet Mills and MaineHousing announced financing for 311 new affordable apartments across eight cites, including Portland, Biddeford, Lewiston and South Portland.

3. Maine made new investments to address homelessness.

In the winter of 2024-25, MaineHousing awarded $7.7 million in grants to 22 organizations across the state to address long-term solutions to homelessness. These grants included money for new and expanded shelters, housing navigation services and prevention programs.

The state also started a $2 million pilot project in January 2025 to prevent student homelessness by giving schools money to hire housing navigators and offer direct assistance to families at risk of losing housing.

“While challenges remain, especially funding limitations and rising demand, the (winter 2025) season marked a period of expanded investment, stronger regional coordination and more deliberate data gathering,” the report said.

4. Maine has better data on housing now.

MaineHousing launched a new Homeownership Affordability Dashboard in 2025 that offers different ways to view data related to Maine home prices.

The agency also issued its first Housing Outlook Report summarizing the state of housing in Maine. The 2025 outlook report found that Maine’s economic forecast had improved following a period of instability during the COVID-19 pandemic. However, housing production costs were up and rental cost burdens were increasing for Maine households, the report found.

5. Long-term goals are outlined.

MaineHousing also launched a new three-year strategic plan in 2025. The agency’s goals include increasing the number and quality of first-time home loans; increasing affordable housing development; and reducing the number of people who are homeless and the length of time they are unhoused.