Moving to Southwest Harbor: Pros, Cons & What to Know

Moving to Southwest Harbor means moving to Mount Desert Island's quieter, working-waterfront 'quiet side' -- a real lobstering village weighed honestly against expensive housing and a shrinking year-round population.

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Southwest Harbor's setting on MDI's 'quiet side'

Southwest Harbor is the largest municipality on Mount Desert Island's southwestern 'quiet side,' a real, meaningfully quieter alternative to Bar Harbor's much heavier tourism volume, located approximately 25 minutes away (base record).

A real, substantial year-round population decline

Southwest Harbor's population ran approximately 527 per a 2026 projection, down a real, substantial -15.81% from 626 at the 2020 Census -- a decline this record connects to Mount Desert Island's well-documented tourism- and second-home-driven affordability squeeze (base record).

A genuine working-waterfront and yacht-building economy

Southwest Harbor's economy centers on a real, current working lobster-fishing harbor and The Hinckley Company, a luxury yacht builder founded there in 1928 that remains headquartered and operating locally (base record).

Genuinely expensive housing despite a low tax rate

Southwest Harbor's own 0.90% effective property tax rate runs low, but its high coastal home values (a median sale price around $369,000) still produce an average annual tax bill of approximately $3,750 (base record).

Key takeaways

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Last reviewed: 2026-08-28. Independent research; not financial, tax, or legal advice -- confirm current figures with a local professional before making a decision.