Riding the Economic Wave: Where Demand Is Still Strong in 2025 — and What It Means for Builders

While headlines warn of a cooling construction market in 2025, the reality on the ground is more nuanced. Yes, some sectors are tightening — particularly speculative office and retail — but others are holding steady or even growing. Builders who take time to understand these shifts are finding opportunities in places their competitors are overlooking.

In Michigan and across the Midwest, institutional construction remains strong. School districts, universities, and healthcare networks continue to invest in facility upgrades, driven by aging infrastructure and federal funding programs. These projects often come with tight specs, firm budgets, and rigorous schedules — but also reliability, long timelines, and repeat work for firms that deliver.

Multifamily housing is another area of continued demand, particularly in walkable suburbs and mid-tier cities like Grand Rapids. Rising interest rates have pushed many would-be homebuyers toward renting, and developers are responding with townhome clusters, infill apartments, and build-to-rent communities. Builders who specialize in efficient framing, value engineering, and fast-turnover models are positioned well here.

On the residential side, custom homes are seeing a rebound among high-income clients less sensitive to borrowing costs. These buyers want modern features, green materials, and smart systems — all of which open the door for value-added partnerships between builders, designers, and suppliers. Remodels and additions are also gaining momentum as more homeowners opt to improve rather than move.

At the same time, federal and state investments in infrastructure and public housing are creating longer-term project pipelines in roadwork, civil construction, and government-funded housing. While not every contractor wants to take on prevailing wage and compliance-heavy projects, those who do are accessing a more stable flow of work — especially during private sector slowdowns.

Understanding where demand remains strong isn’t just about chasing trends. It’s about aligning your capabilities with the market realities of 2025. That may mean tightening estimating practices, refining your niche, or adjusting how you bid and stage projects. Builders who stay nimble — and grounded in data — are proving they can grow even in a complex environment.

At CMS, we’re not just watching the market — we’re embedded in it. We work with builders across commercial, residential, and institutional sectors, helping them adjust supply strategies, track product availability, and make smarter purchasing decisions. When your margins depend on timing and precision, you need a supplier that knows how to ride the wave with you.

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