Cape Elizabeth is an almost exclusively suburban town on the Maine coastline line approximately 8 miles south of Portland. There is one traffic light and one central town area for commercial businesses which are tightly controlled by the Town. The town usually ranks first or second in average home value for recent sales in the state. Falmouth would be its usual competitor with Cumberland and Yarmouth recently entering the mix. Following George Bush's presidency, York County to the south and Kennebunkport in particular swelled in property evaluation, but in general those markets are seasonal or second home properties.

Cape Elizabeth enjoys its reputation as a tourist destination because of the presence of its coastline and famous lighthouses, most notably Portland Headlight. There is only one lodging facility in the town, and no franchise restaurants have been allowed thus far.