The Wet Mountains Building Report: Q2 2025

Sarah Handy

July 15, 2025 | Building Reports

What We’re Seeing in Westcliffe—and How Broader Trends Are Playing Out

As we move through the second quarter of 2025, the trends we saw earlier in the year are holding steady. What’s changed is the level of confirmation. Market data across the U.S. and Colorado shows a more stable—though still elevated—building environment, and what we’re seeing locally lines up with that picture.

In the Wet Mountains, that stability doesn’t mean things are easier. It just means the challenges are more predictable. And predictable challenges are something experienced builders know how to plan for.

Material Trends: Prices Stabilized, Decisions Got Smarter

Lumber pricing has largely stabilized compared to the extreme volatility of previous years. According to the National Association of Home Builders, softwood lumber prices in 2024–2025 have remained relatively steady, though still above pre-2020 levels.

That stability is changing how builders make decisions. Instead of reacting to rapid price swings, there’s more focus on where money is best spent. We’re seeing that locally as well—more attention to material quality, fewer last-minute substitutions, and more planning upfront.

This doesn’t mean materials are cheap. It means the conversation has shifted from “what’s the lowest price today” to “what’s going to perform over time.”

Product Performance: Durability Is Getting More Attention

Across the industry, there’s increasing emphasis on durability and long-term performance. The NAHB’s housing and construction data continues to highlight that material choices play a major role in lifecycle cost, not just initial cost.

Locally, that shows up in the types of questions we’re getting. Builders and homeowners are thinking more about exposure, maintenance, and longevity—especially for windows and exterior materials.

In a high-altitude environment, that shift matters. Products that hold up under UV exposure, temperature swings, and dry conditions are separating themselves from those that simply meet minimum standards.

Contractor Trends: Labor Costs Are Driving Better Choices

One of the biggest national trends influencing material decisions right now is labor cost. According to the NAHB labor shortage reports, labor shortages and higher wages continue to impact construction across the country.

When labor is expensive, mistakes get expensive fast.

That reality is pushing builders to prioritize consistency in materials, reduce defects, simplify installation, and avoid callbacks wherever possible.

We’re seeing the same thing in Westcliffe. Builders who have been through a few projects here understand that fighting materials during install—or fixing issues later—is not where you want to spend time or money.

Local Activity: Steady Demand in a Slower Market

Nationally, housing starts have been relatively steady but not aggressive, with higher interest rates keeping some projects on hold. In Colorado, construction activity has remained active, particularly in rural and lifestyle-driven markets.

Custer County reflects that trend. We’re not seeing explosive growth, but we are seeing steady building activity—new homes, remodels, and ongoing projects moving forward.

The difference is in how those projects are being planned. There’s more caution, more questions, and more focus on getting material choices right the first time.

Local Conditions: The Constant Factor

While markets shift, the environment here does not.

High UV exposure, low humidity, and wide temperature swings continue to put stress on materials. Research from the USDA Forest Products Laboratory shows that wood movement is directly influenced by moisture changes and environmental conditions—something we see play out every year.

Materials that aren’t suited for this kind of environment tend to show it quickly. Materials chosen with these conditions in mind tend to hold up better. That hasn’t changed, and it’s not going to.

Pricing Reality: Why Quotes Still Vary

Even with more stable pricing overall, we’re still seeing significant variation in quotes. That’s not a contradiction—it’s a reflection of differences in material grade and product quality.

Industry standards, such as those outlined by the Western Wood Products Association, make it clear that lumber grades vary significantly in strength, consistency, and allowable defects. Those differences directly impact performance.

That’s why comparing apples to apples still matters. A lower quote often reflects a lower-grade material, even if it’s not clearly stated.

What We’re Watching

As we move into the second half of 2025, a few trends remain consistent both locally and nationally. Material pricing is expected to remain relatively stable, though still sensitive to supply and demand shifts. Labor constraints will continue to influence how projects are managed. There is also ongoing emphasis across the industry on durability, efficiency, and long-term performance.

None of these trends are dramatic, but they are steady—and that’s what makes them important.

Looking Ahead

Q2 is confirming what we expected to see. Stability in pricing has shifted attention toward performance. Labor costs are pushing better decision-making. And in a place like the Wet Mountains, environmental conditions continue to reward materials that are chosen with intention.

The projects that go the smoothest are the ones that account for those realities from the start.

Need Help Planning Your Project?

If you’re building or planning in this area, we’re always here to help you sort through material options and make sure you’re choosing products that will perform the way you expect them to.

Because around here, what works on paper and what works in reality aren’t always the same thing.

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Sarah Handy
Sarah Handy has been in the building industry for over 20 years, contributing to retail input teams, training committees, and leadership development. Her operational strategies have been featured in Hardware Retailer magazine, Ace Heartware Stories, and awarded Ace Coolest Hardware Store in 2022.

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