Market Pulse — August 26, 2026

Every couple of weeks, we share what we’re seeing across the Puget Sound custom-home market — the trends, costs, and shifts that actually affect a build in Snohomish County and across the greater Puget Sound. Here’s what stood out this week.

Trade Talks Collapse — Millwork Costs Lock In While Framing Keeps Falling

The Canadian tariff story we flagged a few weeks ago just took a turn. A new 50% tariff on Canadian cabinetry, millwork, and plywood — the finish materials that make a custom home feel custom — took effect August 22 after trade talks broke down, and Canada answered a few days later with its own tariffs on $20 billion of U.S. goods. This isn’t a short-term spike we expect to reverse soon. At the same time, framing lumber has kept drifting down all August, so the materials-cost story right now genuinely depends on which category you’re pricing — worth understanding both sides before locking in a budget.

Camano Island Tips Into a Buyer’s Market

If you’ve been eyeing an existing property on Camano Island as an alternative to building, the math just shifted in your favor. Inventory there is sitting at more than six months of supply — a real buyer’s market — with prices down slightly from a year ago and less competition for land and waterfront sites than we’ve seen in years.

AI Reaches the Materials Supply Chain

We keep an eye on design and pre-construction technology even where it doesn’t touch our own tools directly. This week, Builders FirstSource — the country’s largest building materials supplier — partnered with a Vancouver, WA company called Digs to build an AI-powered “digital twin” that tracks a home’s materials, specs, and warranty history for years after move-in. We don’t use this particular platform, but it’s a clear signal: better documentation and materials tracking are becoming standard expectations, not extras.

Rural ADUs: The Real Limit Is Water and Septic, Not Zoning

Washington’s rural accessory dwelling unit law has been in effect since June, and the practical details are becoming clearer as counties and local water systems work through it. The short version: a detached guest house or multigenerational unit needs its own water meter, and you need documented proof your existing septic system can handle the added load. If an ADU is part of your plan for a rural or island property, it’s worth raising water and septic capacity with your builder at the first site visit — before you fall for a floor plan your parcel can’t support.

What This Means for Prospective Clients

If you’ve been thinking about a custom home in Snohomish County or elsewhere across the greater Puget Sound, three things are worth knowing right now: materials costs are splitting in two directions depending on category, the islands are giving buyers more room to negotiate on land, and the rules around guest houses and ADUs reward planning ahead rather than deciding on the fly.

We’re a small firm by design. We work with a limited number of clients each year, and we take the time to get the project right. If you’re curious about what custom design-build actually looks like — the process, the timeline, the decisions — we’re happy to talk.

Reach out here.