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.

The price of lumber 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 ***** U.S. dollars. Yet, after reaching this peak the price then fell to below *** 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 *** U.S. dollars as of January 29, 2025.

Monthly Report on Softwood Lumber Prices and Consumption Softwood Lumber Agreement (SLA) 2006

Non-seasonal prices paid for softwood lumber in the United States have remained relatively stable since 2023, after reaching a peak in March 2022. While the price of softwood lumber in May 2021 was valued at over 581 index points, that figure dropped to 274 in September of that year. The price of softwood veneer and plywood in the United States has also followed a similar trend.

United States - Producer Price Index by Commodity: Lumber and Wood Products: Logs, Bolts, Timber, Pulpwood and Wood Chips was 238.00000 Index 1982=100 in December of 2015, according to the United States Federal Reserve. Historically, United States - Producer Price Index by Commodity: Lumber and Wood Products: Logs, Bolts, Timber, Pulpwood and Wood Chips reached a record high of 245.40000 in May of 2015 and a record low of 184.30000 in January of 1993. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Producer Price Index by Commodity: Lumber and Wood Products: Logs, Bolts, Timber, Pulpwood and Wood Chips - last updated from the United States Federal Reserve on July of 2025.

Lumber wholesalers distribute a wide range of lumber, plywood, millwork and wood panel products to contractors, home improvement stores, hardware stores and other miscellaneous buyers, like government agencies, businesses for end use, consumers and farms. The industry has faced severe volatility through most of the current period as a result of the pandemic, massive supply chain disruptions and surging interest rates. In particular, higher rates offset growth realized at the start of the pandemic from torrid housing starts and home improvement markets, leading to five-year declines in the industry. Overall, revenue has faltered at an expected CAGR of 1.1% to $150.7 billion through the current period, despite a 1.3% jump in 2025, where profit reached 4.3%. Supply chain disruptions have also had an outsized impact on the industry's performance. In particular, major lumber shortages caused prices to skyrocket more than 36.0% in 2021. Wholesalers faced shrinking inventories and heightened demand from housing markets, with demand overwhelming availability. Companies were able to heavily raise prices, reaping 14.0% growth in the year. As prices ebbed and construction markets cooled, revenue dropped significantly, erasing gains from the start of the current period. In general, the cyclical nature of construction markets contributes to major boom-or-bust cycles. Lumber wholesalers will continue to contend with uncertainty through the outlook period. While interest rate cuts in 2024 and 2025 point toward healthier construction markets in the near future, tariffs may likely create economic uncertainty. Additionally, trade policies may introduce new supply chain complexities, raising lumber prices and potentially encouraging contractors to adopt alternative materials in home building. Additionally, companies will start to prioritize cost-saving technology and systems, like robotics and inventory management systems, improving connectivity with buyers and suppliers while reducing labor reliance. Wholesalers will also need to effectively manage inventories, ensuring products meet sustainability standards to attract and retain buyers. Overall, revenue will rebound at an expected CAGR of 2.0% to $166.7 billion through the outlook period, where profit will reach 4.4%.

Canadian lumber wholesalers have grappled with global lumber price volatility, creating challenging conditions both for wholesalers and for downstream clients like construction contractors, home improvement stores and hardware stores. In 2021 and 2022, the price of lumber soared globally as demand for new construction soared, especially in the United States. While exports and imports are not tracked at a wholesale level, many companies do sell across the border; as a result, conditions in the United States affect revenue. As lumber prices and Canadian residential construction activity have fallen from their respective 2021 and 2022 peaks, so too has revenue for the Lumber Wholesaling industry in Canada. With industry revenue forecast to remain level in 2025 alone, the overall industry is expected to have decreased at a five-year CAGR of 1.8% to reach $15.6 billion in 2025. The fate of wholesalers has largely been tied to the volatility of downstream construction markets. High interest rates stifled previously hot residential construction markets in both Canada in the US till both the Bank of Canada and the Federal Reserve began cutting rates. While this is set to improve construction activity, and therefore demand for lumber, both the Bank of Canada and the Federal Reserve have held rates steady in their most recent 2025 decisions as volatile US-Canada tariff policy has created an uncertain economic situation. The US and Canada have had an ongoing trade dispute over lumber prices since before the US put in place broader tariffs in April 2025. The uncertain business environment caused in part by these tariffs has kept the average industry profit margin from expanding through the end of 2025. Lumber wholesalers are expected to see growth moving forward. Interest rates are expected to be gradually cut over the coming years, stimulating demand from downstream construction markets. In tandem, the selling price of lumber is expected to climb, though it will not likely see the rampant inflation of recent years. Demand for housing construction in Canada demand is also set to remain strong into the near future. Consequently, industry revenue is forecast to expand at a CAGR of 1.4% to $15.6 billion over the five years through 2030.

Graph and download economic data for Producer Price Index by Commodity: Lumber and Wood Products: Logs, Bolts, Timber, Pulpwood and Wood Chips (WPS085105) from Jan 2012 to Dec 2015 about logging, wood, production, commodities, PPI, price index, indexes, price, and USA.

United States - Producer Price Index by Commodity: Lumber and Wood Products: Hardwood Plywood was 156.86200 Index Dec 2012=100 in May of 2025, according to the United States Federal Reserve. Historically, United States - Producer Price Index by Commodity: Lumber and Wood Products: Hardwood Plywood reached a record high of 175.99700 in October of 2022 and a record low of 96.70000 in April of 2015. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Producer Price Index by Commodity: Lumber and Wood Products: Hardwood Plywood - last updated from the United States Federal Reserve on July of 2025.

Austria Wholesale Price Index: 2015=100: Others: Wood and Wood Products data was reported at 103.800 2015=100 in Dec 2020. This records a decrease from the previous number of 104.300 2015=100 for Nov 2020. Austria Wholesale Price Index: 2015=100: Others: Wood and Wood Products data is updated monthly, averaging 102.000 2015=100 from Dec 2015 (Median) to Dec 2020, with 61 observations. The data reached an all-time high of 108.700 2015=100 in Dec 2015 and a record low of 99.300 2015=100 in Jun 2016. Austria Wholesale Price Index: 2015=100: Others: Wood and Wood Products data remains active status in CEIC and is reported by Statistics Austria. The data is categorized under Global Database’s Austria – Table AT.I021: Wholesale Price Index: 2015=100.

United States - Producer Price Index by Commodity: Lumber and Wood Products: Mirror and Picture Frames and Framed Pictures was 162.72200 Index Jun 2002=100 in May of 2025, according to the United States Federal Reserve. Historically, United States - Producer Price Index by Commodity: Lumber and Wood Products: Mirror and Picture Frames and Framed Pictures reached a record high of 162.72200 in April of 2025 and a record low of 94.80000 in November of 2015. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Producer Price Index by Commodity: Lumber and Wood Products: Mirror and Picture Frames and Framed Pictures - last updated from the United States Federal Reserve on July of 2025.

Thailand CMI: 2015=100: Lumber and Wood Products data was reported at 138.200 2015=100 in Mar 2025. This stayed constant from the previous number of 138.200 2015=100 for Feb 2025. Thailand CMI: 2015=100: Lumber and Wood Products data is updated monthly, averaging 96.100 2015=100 from Jan 2000 (Median) to Mar 2025, with 303 observations. The data reached an all-time high of 138.300 2015=100 in Jan 2025 and a record low of 53.400 2015=100 in Jan 2000. Thailand CMI: 2015=100: Lumber and Wood Products data remains active status in CEIC and is reported by Bureau of Trade and Economic Indices. The data is categorized under Global Database’s Thailand – Table TH.EA006: Construction Material Price Index.

Japan PPI: W: Lumber & Wood: Wood Products (WP) data was reported at 4.000 Per 1000 in Apr 2022. This stayed constant from the previous number of 4.000 Per 1000 for Mar 2022. Japan PPI: W: Lumber & Wood: Wood Products (WP) data is updated monthly, averaging 4.000 Per 1000 from Jan 2015 (Median) to Apr 2022, with 88 observations. The data reached an all-time high of 4.000 Per 1000 in Apr 2022 and a record low of 4.000 Per 1000 in Apr 2022. Japan PPI: W: Lumber & Wood: Wood Products (WP) data remains active status in CEIC and is reported by Bank of Japan. The data is categorized under Global Database’s Japan – Table JP.I067: Producer Price Index: 2015=100: Weight.

In 2023, the merchandise import price index for wood and articles of wood in Vietnam amounted to approximately 113.01 index points, indicating a decrease from the previous year. In that year, the country's merchandise import price index was at 118.39 points.

Japan PPI: W: Lumber & Wood: WP: OP: Glued Laminated Lumber data was reported at 0.700 Per 1000 in Apr 2022. This stayed constant from the previous number of 0.700 Per 1000 for Mar 2022. Japan PPI: W: Lumber & Wood: WP: OP: Glued Laminated Lumber data is updated monthly, averaging 0.700 Per 1000 from Jan 1985 (Median) to Apr 2022, with 448 observations. The data reached an all-time high of 0.700 Per 1000 in Apr 2022 and a record low of 0.700 Per 1000 in Apr 2022. Japan PPI: W: Lumber & Wood: WP: OP: Glued Laminated Lumber data remains active status in CEIC and is reported by Bank of Japan. The data is categorized under Global Database’s Japan – Table JP.I067: Producer Price Index: 2015=100: Weight.

The cost of manufacturing softwood veneer and plywood has fluctuated significantly during the past years in the United States, with its index value falling to 301.5 in August 2024. The price of this product peaked in June 2021 at 702.5, only to fall to 302 in September of that year. 1982 is the date used as a reference point, in which the index value was fixed at 100.

Graph and download economic data for Producer Price Index by Commodity: Lumber and Wood Products: Stock Wood Bathroom Vanities and Related Cabinetwork (WPU082101041) from Dec 2009 to Dec 2015 about stocks, wood, commodities, PPI, inflation, price index, indexes, price, and USA.

Building materials made of steel, copper and other metals had some of the highest price growth rates in the U.S. in early 2025 in comparison to the previous year. The growth rate of the cost of several construction materials was slightly lower than in late 2024. 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 these trends in the U.S., at that time the price growth rate of construction materials in the UK were generally lower 2024 than in 2023. Nevertheless, the cost of some construction materials in the UK still rose that year, with several of those items reaching price growth rates of over **** 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.

The lumber industry has experienced significant volatility in recent years, with fluctuating prices impacting both the market and wider economy. During the pandemic, a housing boom driven by low interest rates and increased disposable income led to a surge in demand for lumber, significantly boosting mill revenues. However, prices later tumbled, affecting revenue as higher interest rates cooled the housing market and reduced demand for construction. Lumber production and shipments experienced declines, and the industry faced operating losses due to decreased demand. Looking ahead, prices are expected to rise due to tariffs on Canadian lumber imports and previous supply shortages, although high mortgage rates may still dampen demand. The ongoing trade dispute between Canada and the U.S. has resulted in increased tariffs, impacting Canadian producers who supply softwood lumber to the US market. Industry revenue is expected to rise at a CAGR of 2.6% to $51.6 billion through the end of 2025, with 2.0% growth forecast for the current year. Industry profit is expected to recover alongside rising lumber prices this year as well. The US housing market plays a crucial role in the lumber industry by driving demand for wooden materials used in construction and renovation. Despite past challenges with high interest rates and elevated home prices hurting residential investments and reducing lumber demand, there is optimism that the recent Federal Reserve rate will eventually translate to lower mortgage rates, potentially rejuvenating the housing market and building material demand. Even with these promising signs, a significant affordability barrier remains as home prices continue to overshadow median incomes, discouraging many first-time buyers and thus impeding growth in the housing market, impacting lumber demand negatively. The industry is also dealing with profitability challenges due to high costs and declining lumber prices, which have led to sawmill closures and under-utilization of capacities, emphasizing the importance of operational efficiency. As a response, the industry is likely to see consolidation within domestic mill operations to maintain profitability amid market fluctuations. A notable development in the sector is the growth of the cross-laminated timber (CLT) specialist subsector, which promises a boom, supported by innovations in fire retardant technology and approvals for new timber certifications, like eastern hemlock trees, broadening opportunities for sustainable construction. Revenue is expected to increase at a CAGR of 1.6% to $55.9 billion through the end of 2030.

Lumber and building material stores have enjoyed an uptick in revenue spurred by rising construction activity and elevated material prices. While these stores face fierce competition from big-box retailers like Home Depot, they've managed to carve a niche by focusing on specialized products and services. Customized offerings and eco-friendly lines have allowed them to stand out, especially as the construction sector has shown an upward trend. Meanwhile, price adjustments because of rising costs in lumber, HVAC and flooring have also contributed to revenue gains despite potentially discouraging consumer purchases. Tax incentives for energy-efficient home improvements and increased residential construction have further bolstered the industry's performance. Revenue is expected to climb at a CAGR of 0.7% to $160.8 billion through the end of 2025, including a projected growth of 0.4% in 2025 alone. In the same year, profit is anticipated to account for 5.0% of revenue. Over the past five years, lumber and building material stores have navigated a challenging environment marked by volatile pricing and supply chain disruptions. Yet, they've managed to maintain a steady course. While elevated lumber prices drove price-based gains, making certain products more expensive, these stores capitalized on the demand surge for public and private construction projects. Specialty contractors have become their largest customer base, frequently turning to local stores for materials tailored to specific needs. Consolidation within the industry has been a notable trend, with larger companies acquiring smaller competitors to remain viable against big-box giants. Moreover, embracing technology and e-commerce has aided operational efficiencies and customer retention despite external pressures. Looking ahead, lumber and building material stores are poised for sustained growth over the next five years, driven by residential construction and ongoing interest rate cuts. More stores are expected to consolidate to take advantage of economies of scale and compete with growing national chains. Environmental consciousness will also shape offerings, with more stores stocking green building materials to meet rising consumer demand for sustainable infrastructure. Though competition from home improvement stores will intensify, lumber and building material stores will thrive by focusing on local expertise, customer service and innovation to maintain their competitive edge in an evolving market. Revenue is forecast to inch upward at a CAGR of 0.8% to $167.3 billion through the end of 2030.