NO. 06 | CHART FOR THOUGHT

Daily Lumber Futures Pricing at Close

daily lumber futures pricing at close
daily lumber futures pricing at close
  • Lumber production was reduced at the pandemic’s onset due to COVID-19 precautions at sawmills and the expectation of producers that lumber demand would fall
  • However, home-bound consumers plowed additional savings into home purchases and home renovations. These lumber-intensive activities drove up demand for lumber just as the supply was decreasing
  • The imbalance of supply and demand caused a precipitous rise in lumber spot pricing, which peaked in May 2021 at almost 4x the price from 12 months prior
  • The rapid rise in lumber pricing is interfering with further housing development as cost overruns reduce the feasibility of construction projects and delays in material halt progress