The price of lumber in the United States fluctuated widely over the last five years, from a low of 240 dollars per 1,000 board feet in January 2016 to a peak of over 1,500 dollars in April 2021. This overall increase has not been linear though, with, for example, lumber prices falling by around 50 percent between June and September 2018, and again between August and October 2020. The value fell again by around 75 percent between May and August 2021. As of the end of December 2024, the price of lumber stood at 550.5 U.S. dollars per thousand board feet. Which nations are at the forefront of lumber production? The production of lumber is dependent on the availability of forest resources, market demand, and technological advances. Sustainable forest management practices a continuous supply of timber, while economic factors and construction activity drive demand. Among the countries countries with the largest production of lumber were China and the United States. Other countries with a relatively high lumber production rate were Russia, China, and Brazil.

Lumber increased 124.05 USD/1000 board feet or 22.55% since the beginning of 2025, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Lumber - values, historical data, forecasts and news - updated on March of 2025.

Building materials made of copper had some of the highest price growth rates in the U.S. in December 2024 in comparison to the previous year. The growth rate of the cost of many construction materials was much lower than in 2023. It is important to note, though, that the figures provided are Producer Price Indices, which cover production within the United States, but do not include imports or tariffs. This might matter for lumber, as Canada's wood production is normally large enough that the U.S. can import it from its neighboring country. Construction material prices in the United Kingdom Similarly to the inflation trends in the U.S. at that time, the price growth rate of construction materials in the UK were generally lower 2023 than in 2022. Nevertheless, the cost of some construction materials in the UK still soared that year, with several of those items reaching price growth rates of over 10 or even of over 14 percent. Considering that those materials make up a very big share of the costs incurred for a construction project, those developments may also have affected the average construction output price in the UK. Construction material shortages during the COVID-19 pandemic During the first years of the COVID-19 pandemic, there often were supply problems and material shortages, which created instability in the construction market. According to a survey among construction contractors, the construction materials most affected by shortages in the U.S. during most of 2021 were steel and lumber. This was also a problem on the other side of the Atlantic: The share of building construction companies experiencing shortages in Germany soared between March and June 2021, staying at high levels for over a year. Meanwhile, the shortage of material or equipment was one of the main factors limiting the building activity in France in June 2022.

Explore the recent trends in construction lumber pricing affected by supply chain disruptions, demand changes, and economic shifts up to 2023. Learn about the impact of the pandemic, housing market dynamics, and trade policies on lumber costs, and how prices have stabilized post-pandemic. Stay informed about the factors influencing lumber prices and their implications for builders and developers.

In the fiscal year 2023, the price index of wood for building construction Japan's capital Tokyo stood at 138.6 index points. Timber prices declined from a decade high of 170.1 index points in the previous year.

Explore the 2023 landscape of lumber costs for building homes, including average expenses, factors affecting prices, and tips for navigating volatile market trends.

Explore how 84 Lumber, a top supplier of building materials, manages fluctuating lumber prices influenced by market demand, supply changes, and economic factors. Learn about types of lumber available, price dynamics, and benefits of maintaining supplier relationships for cost savings in construction projects.

According to Cognitive Market Research, the global Lumber market size will be USD XX million in 2024. It will expand at a compound annual growth rate (CAGR) of 5.00% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.2% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD XX million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.0% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.4% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.7% from 2024 to 2031.
The sustainable products category is the fastest growing segment of the Lumber industry

Market Dynamics of Lumber Market

Key Drivers for Lumber Market

Increased infrastructure development fuels lumber consumption and market growth to Boost Market Growth

The key drivers that dominate the growth of the lumber market due to increased infrastructure development include rising urbanization, population growth, and an expanding construction sector. As countries invest heavily in infrastructure projects such as roads, bridges, and residential and commercial buildings, there is a growing demand for Lumber as a primary building material. Additionally, the increasing focus on sustainable and eco-friendly construction practices has led to a preference for wood-based products, driving up lumber consumption. Government initiatives and policies aimed at enhancing urban development and improving infrastructure further stimulate the demand for Lumber. Moreover, the growing trend of wood's aesthetic and environmental benefits in interior design and construction projects contributes to market growth. The continuous development of new technologies in lumber processing and efficient supply chain management also boosts the availability of quality lumber, enhancing its consumption in the market. These factors collectively fuel the global lumber market growth.

Rising home construction projects drive lumber demand and prices

Rising home construction projects are a key driver of increased lumber demand and prices. The expansion of residential construction, fueled by population growth, urbanization, and low interest rates, boosts the need for Lumber. As more people seek homeownership and housing inventory remains limited, the demand for building materials, particularly Lumber, intensifies. Supply chain disruptions, limited mill capacity, and labor shortages further exacerbate the supply-demand imbalance, contributing to price hikes. Additionally, increasing government investment in infrastructure and housing projects, along with the shift toward sustainable building practices, is expected to continue driving demand for Lumber in the coming years.

Restraint Factor for the Lumber Market

Unpredictable timber costs affect pricing and profitability

Unpredictable timber costs pose significant restraints in the timber industry, directly influencing pricing and profitability. Fluctuations in raw material costs, driven by factors like supply chain disruptions, environmental regulations, and demand shifts, make it difficult for businesses to forecast expenses. This uncertainty can lead to pricing instability, forcing companies to either absorb higher costs or pass them onto consumers, which impacts competitiveness. Additionally, profitability is threatened as businesses struggle to maintain margins amidst rising or volatile timber prices. Long-term planning and financial stability are hindered, limiting growth opportunities and operational efficiency.

Impact of Covid-19 on the Lumber Market

The COVID-19 pandemic significantly impacted the lumber market, causing supply chain disruptions and labor shortages. As construction activities were temporarily halted and sawmills faced closures or reduced operations, lumber production dropped, leading to supply shortages. The demand for Lumber surged as housing...

The price of lumbe has seen both an overall increase, and large amounts of volatility since 2019. From its low in early April 2020 to its peak in May 2021, the price per 1,000 board feet of lumber increased almost sevenfold, reaching 1,670 U.S. dollars. Yet, after reaching this peak the price then fell to below 500 U.S. dollars per 1,000 board feet in August 2021 before rising again to reach over 1,000 U.S. dollars in the beginning of 2022. Since then, the price per 1,000 board feet of lumber decreased overall, reaching 576 U.S. dollars as of January 29, 2025.

The construction cost of wood structure buildings in Japan reached 233.7 thousand Japanese yen per square meter in 2023. The price per square meter of wooden buildings increased from 209.6 thousand yen in the previous year. Wood prices in Japan have soared during the coronavirus pandemic.

The annual price growth rate of hardwood lumber in the United States fluctuated significantly between 1970 and 2023. During that time, the highest increase was observed in 2021 when hardwood lumber prices increased by 34.9 percent. The producer prices for hardwood lumber fell by 15 percent in 1975.

Graph and download economic data for Producer Price Index by Commodity: Lumber and Wood Products: Lumber (WPS081) from Jan 1967 to Feb 2025 about wood, commodities, PPI, inflation, price index, indexes, price, and USA.

After four years of growth, the U.S. prefabricated wood building market decreased by -3.6% to $5.1B in 2024. Overall, consumption, however, continues to indicate a buoyant expansion. Over the period under review, the market reached the peak level at $5.2B in 2023, and then reduced modestly in the following year.

The prices of most construction materials in Mexico increased from January to October 2024. Ready-mixed concrete increased its cost by over 8.6 percent from 2023 to the first 10 months of 2024. Meanwhile, the price of wire products decreased by 10.8 percent during that period. Building material costs in the United States followed a similar trend that year.

The global solid wood lumber market is experiencing robust growth, driven by a resurgence in construction activity worldwide and increasing demand for sustainable building materials. The market size in 2025 is estimated at $250 billion, exhibiting a Compound Annual Growth Rate (CAGR) of 4.5% from 2025 to 2033. This growth is fueled by several key factors including the ongoing expansion of the housing sector, particularly in developing economies, and a growing preference for wood in commercial construction projects due to its aesthetic appeal and environmental benefits. Furthermore, the increasing use of wood in furniture manufacturing and interior decoration contributes significantly to the market's expansion. The softwood lumber segment currently dominates the market, driven by its widespread use in construction, but the hardwood lumber segment is projected to witness faster growth due to its use in higher-value applications like furniture and flooring. However, challenges remain, including fluctuations in lumber prices due to timber availability and global economic conditions. Moreover, increasing concerns about deforestation and sustainable forestry practices are putting pressure on the industry to adopt more responsible sourcing and manufacturing methods. Regional variations in market growth are anticipated, with North America and Asia Pacific expected to lead the growth trajectory, propelled by strong construction sectors and increasing disposable incomes. However, Europe, while a significant market, may experience comparatively slower growth due to mature markets and stricter environmental regulations. Key players in the market include large integrated forest product companies like West Fraser, Canfor, Weyerhaeuser, and Stora Enso, along with several regional players. These companies are actively investing in innovative technologies and sustainable forestry practices to remain competitive and meet the evolving demands of the market. Competitive dynamics are characterized by both price competition and differentiation based on product quality, sustainability certifications, and service offerings. The market will likely witness consolidation in the coming years as larger companies acquire smaller ones to gain market share and achieve economies of scale.

Argentina Construction Cost Index: Wood Carpentry data was reported at 117,315.800 1993=100 in Jan 2025. This records an increase from the previous number of 116,082.300 1993=100 for Dec 2024. Argentina Construction Cost Index: Wood Carpentry data is updated monthly, averaging 349.800 1993=100 from Jan 1996 (Median) to Jan 2025, with 349 observations. The data reached an all-time high of 117,315.800 1993=100 in Jan 2025 and a record low of 99.300 1993=100 in Dec 2001. Argentina Construction Cost Index: Wood Carpentry data remains active status in CEIC and is reported by National Institute of Statistics and Censuses. The data is categorized under Global Database’s Argentina – Table AR.EA008: Construction Cost Index: 1993=100.

Explore the factors influencing the fluctuating cost of lumber for home construction, from market conditions and geographical location to design preferences and sustainability choices. Understand how the price per board foot and project specifications determine overall expenses.

The production price index (PPI) for construction materials and components in the United States decreased slightly in 2024. Up until 2020, construction prices had been rising fairly steadily. However, in the years after that construction producer prices have been very unstable. Production price index A PPI of 342 in 2022, indicates that the real-world price has risen by 242 percent in comparison to the base year - 1982 in this case. Similarly, under the same baseline, the PPI for construction machinery and equipment has also risen steadily until 2018. Like all prices, there are regional differences within the United States. The PPI acts as a measurement for the average changes in prices that domestic producers receive for their output. In the United States, the PPI is one of the oldest continuous statistical datasets published by the government. Common construction materials Some building materials are essential to construction work, and the decision on which to use is important for the life and the endurance of the building. Materials such as cement, steel, and sand are essential to many construction projects. The production of cement is tightly linked to the demand that comes from the construction industry. The durability and potency of steel gives it an advantage over wood and concrete, providing buildings with a higher resistance but a cheaper price tag. Sand is commonly used in buildings, but it is especially common in roads that require stones of various grades and granulation.

Graph and download economic data for Import Price Index (End Use): Lumber and Other Unfinished Building Materials (IR130) from Dec 1980 to Feb 2025 about end use, materials, imports, buildings, price index, indexes, price, and USA.

Israel Residential Building Input Price Index: MP: Wood for Building data was reported at 119.300 Jan2004=100 in Jul 2011. This records an increase from the previous number of 118.700 Jan2004=100 for Jun 2011. Israel Residential Building Input Price Index: MP: Wood for Building data is updated monthly, averaging 115.400 Jan2004=100 from Jan 2004 (Median) to Jul 2011, with 91 observations. The data reached an all-time high of 136.300 Jan2004=100 in Oct 2007 and a record low of 100.000 Jan2004=100 in Jan 2004. Israel Residential Building Input Price Index: MP: Wood for Building data remains active status in CEIC and is reported by Central Bureau of Statistics. The data is categorized under Global Database’s Israel – Table IL.I021: Residential Building Input Price Index: Jan2004=100.