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

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