Small Town of 400 in a David-and-Goliath Fight Against Outsiders—as Price of Homes Doubles

Nestled in rural Maine is the tiny town of Newry. Population: just over 400.

But, don’t let its size fool you. The town’s residents are pushing back against outsiders who are paying top dollar for homes, driving up prices for locals while turning the units into Airbnb rentals or other short-term retreats.

The locals have long taken pride in the hidden gem of a town, which is best known for the Sunday River Resort right in the heart of the community. The 800-acre resort is open year-round, but skiing is the main attraction with eight peaks and 144 trails.

But to keep this town quaint, residents don’t want a thing to change.

To address the rising house prices, the town’s next public meeting on Feb. 26 will take up the “Vacation Rental Ordinance,” a proposal addressing short-term rentals.

Joelle Corey, the town’s code enforcement officer, tells Realtor.com® the proposed ordinance focuses on “life safety standards, 911 numbering, egress, and groundwater health concerns.”

While Newry’s proposed ordinance isn’t expected to address banning short-term rentals altogether, it’s a topic that has taken center stage in many states across the U.S. Vacation rental certificates or permits are required in many cities.

In Palm Springs and Lake Tahoe, CA, permit caps and strict rules are enforced on vacation rentals. In Las Vegas, rules are in place banning weddings, birthday parties, bachelor/bachelorette parties, and other types of special events taking place at short-term rentals. San Francisco has strict rules and hefty tourist taxes in place. In Charleston, SC, short-term rental rules are divided into three categories based on how old and how historic the home is.

In addition to getting feedback about vacation rentals, Corey says she is hearing from residents who are concerned about “housing purchase prices being too expensive.”

Home prices on the rise in Newry

Homes in Newry have risen significantly in just a five-year range. In 2019, the median list price was $460,000. By 2024, that nearly doubled, to $878,300.

Realtor.com can also reveal that there are now more homes selling over the $1 million mark. For perspective, before 2018, no homes were selling above that figure.

Using listing data, our economists found that from 2018 to 2021, no more than three homes were listed for over $1 million in a given month.

By 2022, the number of listings priced above $1 million started to climb, reaching an average of six monthly listings in 2022, and eight in 2023 and 2024.

Those numbers are still climbing. As of January 2025, there were 13 homes listed for $1 million or more—that’s nearly half of all listings in town.

“Interest in this area started to pick up pre-pandemic, as shown by falling inventory levels,” explains Realtor.com senior economic research analyst Hannah Jones.

Listings range from a $1,549,000 four-bedroom, new-construction home to a $2,250,000 eight-bedroom home set on 2 acres.

“In 2022, the area ‘took off,’ and higher home prices and more $1 million-plus homes became the norm. Inventory levels have started to recover recently, but home prices are still well above pre-pandemic levels,” says Jones.

Million-dollar mark

Overall, between 2020 and 2022, 142 homes were sold, but when it came to million-dollar homes, none sold for over $1 million in 2020 and 2021 in Newry. Only three homes sold for over $1 million in 2022.

Newry median sale price:

• 2020: $269,000
• 2021: $271,800
• 2022: $511,538

Fast-forward to 2023 and 2024, there were 110 homes sold—20 of those homes were sold for more than $1 million.

Median sale price:

• 2023: $650,284
• 2024: $800,800

“This area is no longer very affordable, so may not appeal to home shoppers looking for a bargain in an idyllic locale,” says Jones.

Resident riff

People who live in Newry and nearby towns have taken notice of the rising home prices. On the one hand, homes are increasing in value; but on the other, it’s pricing out locals.

Those snapping up million-dollar homes are putting them on Airbnb and other short-term rental sites to make cash on their investments.

Realtor.com looked at Airbnb and found weeklong rentals in March, near the Sunday River Resort, costing anywhere from $2,667 for a two-bedroom condo to $6,608 for a 10-bedroom home.

A Facebook group called Angry Beavers of the Woods chimed in on a thread about a local news story explaining how the luxury housing market is booming.

“Air bnb needs to go. We need places for people to live,” one Facebook user wrote. Another added, “Capitalism doesn’t work well for those of average means.”

“Nothing like getting priced out of your own town,” said another user. “Let’s add a village of wealthy folk from away that don’t appreciate our town and area the way we do. It’s not like any of us wanted our families to be able to grow up and afford a local house anyway.”

But, not all residents are in disagreement.

One user pointed out, “That’s a highly contested subject in just about every desirable mountain and coastal town. It’s a huge property rights issue.”