In 1900, the old Oddfellows Hall on Water Street was built. This building is currently undergoing a project to be converted into 18 apartments, and in Augusta, there are notable examples of revitalizing old buildings into apartments, which stand out just as much as new constructions.

The average rent in Augusta varies by source, but recent data indicates it is around $1,087, while other sites suggest it is about $984. For bedrooms, the rates are approximately $684 for studios, $958 for one-bedroom units, and $984 for two-bedroom units. This is 22% lower than the national average, making it relatively affordable within Maine. However, it is difficult to find rental data specifically for new apartments, so it is realistic to use the national average premium range of 10% to 20% as a reference.

Augusta is set to see a significant increase in housing supply, with over 1,000 new homes approved after 2024. On Malta Street, a senior housing project with 32 one-bedroom and two studio units for those aged 55 and older is scheduled to break ground in July 2025 and open by 2026. Additionally, a 260-unit Calumet apartment complex is being developed near Eight Road and Old Belgrade Road. A project on Civic Center Drive is also aiming to start construction in the second quarter of 2026, indicating a noticeable increase in new housing supply within the next 2-3 years. Along Water Street, there is also a separate new construction project with eight units alongside the Oddfellows Hall, showcasing a simultaneous effort to revitalize old commercial buildings while constructing new ones on the same street.

New constructions tend to have lower heating and cooling costs due to modern insulation and systems, which can significantly impact heating expenses during Maine's long winters. Typically, a construction warranty of 1 to 10 years is also applicable. In contrast, older buildings like the Oddfellows Hall have thick walls and established downtown locations, but it is essential to check how much plumbing and windows have been updated during renovations.

Unrenovated older buildings often face upcoming major repairs, such as plumbing or roofing, which can lead to unexpected costs. In smaller markets like Augusta, HOA fees are generally low, but in new developments with community facilities, management fees tend to increase.

Small capital markets like Augusta offer the advantage of lower living costs, making them attractive as first settlement locations for families newly immigrated from other states or countries like South Korea. Property tax and insurance rates may differ from previous residences, so it is advisable to calculate these together. School district boundaries change frequently, so it is recommended to verify the assigned school for a given address through GreatSchools or the Maine Department of Education before signing a contract. Maine's property tax rates vary significantly by region, so if moving from another state, it is wise to compare the tax rate in Kennebec County, where Augusta is located, with that of the previous residence.

For investors looking for rental income, it is important to consider that in markets like Augusta, where new supply has just begun to increase, there is a possibility of rental price growth slowing due to oversupply in a few years. Rather than assuming prices will continue to rise, it is safer to monitor how development plans translate into actual construction and completion. In small markets like Augusta, the completion of just one or two projects can significantly impact rental prices, so it is advisable to check recent news and vacancy rates before making purchases or long-term contracts. When comparing renovated older buildings like the Oddfellows Hall with upcoming new developments, Augusta is currently experiencing an interesting period where both options are increasing side by side.

This article is not investment or legal advice, and it is recommended to consult with professionals before making any contracts or purchases.