There was a retiree looking for a single-story home in Augusta, avoiding stairs due to knee concerns. However, after signing a contract and spending the first winter, the bigger issue turned out to be not the stairs, but the heating oil bill.

Let's start with the numbers. Heating oil in Maine is $3.82 per gallon. Propane is $3.38 per gallon. Electricity rates are 27 cents per kilowatt-hour under CMP jurisdiction and 32 cents under Versant. Augusta is mostly under CMP, but either way, the rates are higher than the national average. Due to Maine's long and cold winters, heating costs make up a larger portion of annual housing expenses compared to other states.

The home prices are relatively less burdensome. The median home price in Augusta is $285,000, significantly lower than the statewide median of $400,000. In the past year, the average price has actually dropped by 9.09 percent to around $250,000. Properties with HOA fees are rare in Maine, with only 8 percent of households paying HOA or condo fees. However, for those that do, the median monthly cost is $169, which is higher than the national average.

Property taxes are another issue. Augusta's tax rate is 2.30 percent, higher than the county median of 1.72 percent. For the 2024-2025 period, the millage rate was $23.80 per $1,000. While home prices are low, the high tax rate means that judging solely by the sale price can overlook the actual financial burden.

Fortunately, there are benefits for those over 65 or veterans. Starting in the 2026 tax year, the Homestead Exemption will apply fully at $25,000 regardless of the assessment ratio. Previously, the exemption amount decreased based on local assessment ratios, but this has been improved. Additionally, there is the Property Tax Fairness Credit, which allows those over 65 to receive a refund of up to $2,500 based on income. Applications must be submitted to the city assessor's office by April 1 each year.

Considering a change in heating methods is also worth exploring. With heating oil prices rising to $3.82 per gallon, switching to a heat pump may increase electricity costs but could lower overall heating expenses. However, since there are initial installation costs, it's important to calculate the remaining residency period and payback time. In Maine, where winters are particularly long, the choice of heating method can significantly impact annual housing costs.

If moving to Augusta from other Northeastern states like Massachusetts or Maryland, it's premature to assume that lower home prices will lead to lower overall housing costs. The high property tax rate and longer, colder winters mean heating costs can be substantial. To accurately gauge living expenses, one must consider the sale price, property taxes, and heating costs together.

In areas like Augusta, where properties with HOAs are rare, many retirees choose to maintain single-family homes. In this case, reducing management burdens is often more about upgrading heating systems to more efficient ones or improving insulation rather than changing the type of housing. In areas with limited listings, it's wise to keep these practical alternatives in mind and compare them.

• Single-family homes - have a larger heating area, leading to the highest heating oil costs in winter.
• Townhomes/Condos - while listings are limited in Maine, shared wall structures reduce heating cost burdens.
• Active senior communities - designed with single-story layouts and barrier-free access, fundamentally solve the stair issue.

Moving to a single-story home resolves the stair issue. However, in Maine, it's essential to recognize that heating costs and property taxes are significant components of housing expenses. Tax benefit conditions may change annually, so it's advisable to check directly with the city assessor's office and tax professionals before applying. This article does not constitute investment or legal advice.