A Market Update from the Builders

How economic forces are affecting local homebuilding (and prices)

By Geri Dietze | Sept. 27, 2025

Tariffs. Labor shortages. Inflation. For months, the up-down, will-they-won’t-they economy has kept the talking heads on the edge of their seats. Still, the building industry seems to be solid and moving forward, at least for now.

Northern Express talked to a duo of local builders to get their take on the three big pressures of the building industry: the supply chain (including any associated tariffs), labor, and house prices. They agree on much, including the lack of a crystal ball to see what the future holds.

Asherpark Custom Homes

Uriah Peterson of Asherpark calls himself a “toolbelt wearing contractor.” Peterson worked his way up in the trades, and he still likes being a hands-on builder. Asherpark employs eight staff in the summer—fewer in the slower season—including Peterson’s son, plus a draftsman, and site managers. Wife Carrie handles permits, client relations, and “our trusted sub-contractor base.”

Asherpark “…usually books about one to two years out,” and completes two to three homes per year, usually in the 2,500 to 3,500-square-foot range. Peterson says that the trend continues to be in bigger homes, “but buyers have a thumb on what they want to spend.”

Supply Chain & Tariffs: Peterson cites the pandemic as the beginning of pricing increases and sourcing issues, “regardless of the [current] tariffs.” As a result, he says, “It created a conundrum, because we can’t guarantee the price of anything past 30 days.”

For example, lumber has stabilized, but aluminum has seen a 50 percent increase. “Aluminum is insane.” And, he adds, “It’s all connected. You grow accustomed to longer lead times.”

Labor: It should come as no surprise that labor issues continue, with labor availability “…at an all-time low, and we pay a higher rate for less talent.” Peterson says, “We pay $20-25 per hour [for workers] with very limited experience, and after three months’ time [they] should know more, [but] there is no gain in training someone. I hate taking jobs away. It’s my worst nightmare.”

Housing Prices: Much of Asherpark’s business is in what he calls “the new affordable” class, homes between $800,000 to $2 million.

“It’s not that we won’t look at other sizes of housing,” Peterson adds, but the cost of doing business makes it “prohibitive.”

And it’s not that he hasn’t tried. Peterson sat on an advisory board tasked with getting current Traverse City homeowners to add rental units to their property in order to ease the shortage of affordable housing, but construction costs, property tax increases, and length of time to realize return on the investment make those efforts tricky. “Unfortunately, it pushes people right out of the game.”

Peterson has practical advice for prospective clients. “Come to the table with what you want, but more important, with what you want to spend. We have to be very upfront. [In this market,] even reno is costly.”

CMB Construction

Legacy builder Colin Bushong learned the trade alongside his father at Bushong Construction before forming CMB Construction in 2010, specializing in high-end, bespoke custom homes, fine carpentry, and large renos. (Seriously: Their current remodel is a 5,000-square-foot total gut job.) Bushong says their business is 90 percent new home construction and 10 percent remodels.

CMB has a staff of 10, including master carpenters and apprentices who handle all interior woodwork. The company sources from a trusted group of subcontractors; they build four to five homes annually in the middle and upper-end budgets; and they are currently booking for summer 2026.

Supply Chain & Tariffs: “We haven’t seen a ton of direct tariff impacts” he says, with the exception of luxury vinyl planking (LVP), a popular choice in lieu of wood flooring, which is manufactured in Asia, mainly China. Beyond that, he says, “I don’t view the supply chain to be that big of a deal.”

Bushong indicates that he learned a lot from COVID shortages, and the situation is much improved. “We work with vendors who understand lead times, and we stay in constant contact,” he says. “[So far,] we haven’t really discovered anything that has stopped our process.”

And while he says it’s “just a theory.” Bushong attributes price increases to material costs rather than tariffs. Since most of CMB’s vendors have stateside facilities, raw materials could indeed be the reason for cost increases. And while some of the lumber used by CMB is imported Canadian Douglas fir and cedar, “they are used on [projects] with higher budgets anyway.”

Labor: “Labor is our limiting factor, and we are really struggling with willingness and skills,” Bushong says, explaining that the workforce is aging out and not being replaced. “The narrative that everyone must go to college to get a good job caused a generational gap in the trades. The building treads are respectable, fulfilling, and have value.”

Bushong works closely with Home Builders Association Northwest Michigan to reach out to young people who might want to enter the trades. Still, he sees a 10- to 15-year gap in replacing retiring craftsmen with young recruits.

Housing Prices: Bushong says current price trends are driven by retirees choosing homes that are 2,500-3,500 square feet with “reasonably high-end finishes.”

“The critical first step [for prospective clients] is to set expectations. Tons of people are ready to do something, but feel that they can’t afford it.” Bushong stresses the importance of the builder/client relationship. “We love to do the meet and greet, to see how we can help.”