BATH — A new report on Maine’s economy continues to highlight the state’s housing crunch, showing that 79% of households can’t afford the median-priced home.

The home affordability crisis has increased steadily since 2020, growing from 56% that year to 72% in 2022 to nearly 80% in 2023, according to the Measures of Growth report, produced by the nonpartisan Maine Development Foundation.

“Housing is now unaffordable for the majority of Mainers,” said Yellow Light Breen, president and CEO of the foundation, during a press conference in Bath.

Although the median price varies widely depending on location in Maine, the statewide median price is about $409,000, according to the latest data from the Maine Association of Realtors.

The report cites the surge in homebuying during the COVID-19 pandemic and a lack of housing stock as reasons for the affordability crisis. And while state lawmakers have pumped millions into the system to try to help, Maine is still a long way away from meeting demand, said Amy Cullen, vice president and project partner with The Szanton Co.

“Maine is short 84,000 homes to meet demand by 2030,” Cullen said. “We know the lack of affordable housing makes it difficult for employers to fill job openings, for seniors to downsize and age in place and for young people to remain in or return to the communities in which they grew up.”

The annual report examines Maine’s economy on 31 measures, including wages, innovation, cost of health care, transportation and the environment.

It singles out positive measures, giving gold stars to Maine’s progress in expanding internet connectivity, maintaining good quality roads, lowering greenhouse gas emissions and implementing sustainable forestry practices.

But along with the lack of affordable housing, the report highlights significant problems with the state’s labor force, which grew only 1% in 2023, and the cost of industrial electricity, which increased 13%.

And when it comes to children, the report raises serious concerns with fourth grade reading scores, eighth-grade math scores and an increase in the number of children with diagnosed mental health conditions.

When it comes to reading, only 29% of Maine fourth graders are proficient in reading, a “sharp drop from pre-COVID levels,” according to the report. And in eighth grade math, only 24% are proficient, compared to 34% before COVID.

“These downward trends are an important warning signal we can’t afford to disregard,” said Jim Erwin, an attorney and member of the Maine Economic Growth Council.

Erwin, a former trustee of the University of Maine System, said the council awarded a red flag to children’s mental health, noting that from 2021-2022, the percentage of children with a mental or behavioral condition rose 4%.

In Maine, an estimated 33% of Maine children have a diagnosed condition such as anxiety, depression, a learning disability or autism, the report shows. The U.S. average is 24.5%.

“Mental and behavioral health is part of a complex array of socio-economic factors that are also likely impacting student performance,” Erwin said.

Breen said they released their report before the start of the new legislative session in hopes of providing a baseline of accurate, nonpartisan data upon which decisions can be made.

“How do we find the best practices in Maine and beyond that are working?” he said. “It’s an entry point to the conversation.”