BYRON CENTER, Mich. — Rising tariffs have sparked concerns among economists that consumers may be shouldering the increased costs of goods and services, including the construction of new homes.
On Monday, President Donald Trump announced a 10% tariff on softwood timber, adding to an existing 35% tariff on imports from Canada, the United States’ largest wood supplier, and a 50% tariff on steel and aluminum entering the country.
According to the National Association of Home Builders, these tariffs could raise the cost of a typical new home by nearly $11,000.
Despite these changes, Eastbrook Homes reports that the current housing market conditions in West Michigan have prevented noticeable increases in new home prices.
“We look at markets all over the country, where there is a lot more volatility,” said Michael McGraw, president of Eastbrook Homes. “We don’t see that in West Michigan.”
Strong schools and a robust job market have made West Michigan attractive for both home buyers and builders.
Eastbrook Homes expects to develop between 700 and 850 new home sites in 2026, marking the most sites the company has developed in McGraw's 20 years with the firm. Even in light of recent tariff announcements, McGraw says that development plans are moving forward.
“One of the advantages of being a larger builder is that much of our product is bought on contracts and commitments for certain volumes, which has certainly helped keep our costs more stable,” McGraw said.
Large agreements already in place have helped maintain building material costs at pre-tariff levels; however, some rising expenses are unavoidable.
“Costs have continued to increase, both for the vertical construction of homes and for the horizontal infrastructure, including water, sewer, and roads,” McGraw noted.
Rising costs and inflation have prompted the company to reassess the most cost-effective types of homes to build, especially for first-time buyers.
“Often, that means something other than a large single-family lot,” McGraw explained. “Their first house might be a townhome they own.”
New neighborhoods now feature smaller lots, a greater number of townhomes, and more downsized new builds for empty-nesters.
“This year, close to 30 percent of our buyers are cash buyers. Many of them are in the empty-nest phase of life, where they might be cashing out their equity from the home they are selling,” McGraw added.
McGraw pointed out that the cost difference between new single-family homes 20 years ago and today is approximately $200,000. The company is currently experiencing the strongest growth in new homes in communities such as Wyoming, Grandville, Allendale, and Caledonia.
