Contractors and building suppliers say the cost of construction materials is increasing.
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TRAVERSE CITY -- The housing market across the country and across Michigan is struggling.
To make matters worse, now contractors and suppliers say the cost of building a home is steadily increasing.
It's a daily job for Ryan Brown as a general contractor for R. Brown Construction & Development, building homes, but lately it's become more expensive.
"Must have been around last spring when we noticed the price increases of the vinyl siding and the cost of the roofing materials. The heating and cooling, the plumbing have been a couple of years now," says Brown.
In a time where the housing market is already struggling, the price increases are just another burden.
"Obviously it takes a little bit out of our profit or we could in turn raise it a couple grand in the price of the home," says Brown.
Common homebuilding materials like shingles are one of the items that have these prices skyrocketing.
"I think shingle prices have gone up 40% from the beginning of the year," says building supplier, John "Pops" Callery.
Callery with Eikenhout Incorporated, a supply company in Traverse City says there's a basic reason behind this dramatic price increase.
"There's a shortage of asphalt which is driving the price increase on shingles and of course the oil prices themselves are driving the increase on vinyl and other products...I've never seen price increases of this magnitude in the 12 years I've been here," says Callery.
Even contractor, Jim May with Salisbury and May Construction is trying to budget his company's finances to cope with the costly ordeal.
"We're having to build less expensive homes, more budget minded homes verses upper scale higher end homes...what it effects if the first time home buyer market, they just can't afford housing anymore," says May.
The question is, are construction prices expected to go back down...and if so, when?
"I don't think I've ever seen prices go down, so if there are correction they're not going to be that much. I think we're going to see if stay this way for a few years anyway," says Callery.
Contractor, Ryan Brown says although the construction prices have increased, he doesn't see the problem affecting the cost of his homes at this point in time.
