Cost of Living in Lake Arrowhead, ME

With a cost of living index of 119, Lake Arrowhead, ME is a notably expensive place to live. Living here is 19% more expensive than the national average and 33% above the Maine state average of 87. Lake Arrowhead is a small community of 3,273 residents.

Housing costs are the biggest factor in Lake Arrowhead's cost of living. The median monthly rent is $2,120 (61% above the US median of $1,319), and the median home value sits at $226,400 (26% below the national median of $304,900). At current prices, the median home costs roughly 2.7x the median household income — well within traditional affordability guidelines.

The median household income in Lake Arrowhead is $84,221, which is 12% higher than the national median of $75,149. Residents spend roughly 30% of household income on rent. This is near the 30% threshold that financial experts generally consider the upper limit of affordability. While incomes are above average, they do not fully offset the higher cost of living.

Climate is another factor for anyone considering a move to Lake Arrowhead. The area sees an average annual temperature of 47.5°F, with summers averaging 68°F and winters around 27°F. Annual rainfall totals 48.1 inches spread over roughly 131 days. Cold winters mean higher heating bills, an important cost-of-living consideration.

Everyday prices in the Portland-South Portland, ME (Metropolitan Statistical Area) metro area are generally below the national average. Out of 6 common items tracked by the Bureau of Labor Statistics, 5 are priced lower than the US average. These real-world prices — from groceries to electricity — add up and should be factored into any cost of living comparison.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.