U.S. housing demand projected to push lumber prices higher in 2024

Posted on November 3, 2023   |  

Lumber prices fell to $400 for 1,000 board feet (mbf) recently, a drop of around $100 since August, primarily due to the seasonal slowdown in construction.

However, prices are likely to climb in February as demand for lumber products increases to meet the rising need in the U.S. housing sector.

It is estimated that there was a 6.4 million home gap between single-family home construction and household formations in the U.S. from 2012 to 2022. 

When considering multi-family construction, this gap decreases to 2.3 million homes.

The current situation in North American lumber markets is relatively stable. 

Demand remains steady, and efforts are underway to align lumber production with this demand, resulting in minimal price fluctuations.

BC's sawmills saw a significant reduction in lumber production, down by 60% to 10 billion board feet in 2023 compared to 2006. 

This decline is influenced by government policies, challenges related to timber supplies, and forest fires.