Lumber fell to 610.96 USD/1000 board feet on August 15, 2025, down 0.25% from the previous day. Over the past month, Lumber's price has fallen 6.79%, but it is still 15.48% higher than a year ago, 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 August of 2025.

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.

Explore the complexities of the framing lumber composite price, a crucial metric for the construction industry. Learn about the factors influencing its volatility, from supply chain disruptions and environmental impacts to demand changes and regulatory constraints, and discover strategies for navigating these challenges.

Explore the intricate dynamics influencing framing lumber prices, including supply chain disruptions, demand fluctuations, and trade policies. Learn how NAHB analyzes these factors to aid builders and policymakers in navigating the housing market's challenges.

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.

Graph and download economic data for Producer Price Index by Commodity: Lumber and Wood Products: Lumber (WPU081) from Jan 1926 to Jun 2025 about wood, commodities, PPI, inflation, price index, indexes, price, and USA.

Wood framing contractors have navigated a challenging landscape marked by fluctuating housing starts and rising costs. In recent years, their fortunes have been mainly tied to the ebb and flow of residential construction, which has seen significant volatility. The low interest rates of 2020 and 2021 spurred substantial growth in housing starts, boosting single-family and multifamily projects. However, interest rate hikes in 2022 slowed single-family construction, although multifamily units showed resilience. Yet, as interest rates remained high, the multifamily sector also took a hit by 2023, reflecting broader trends in housing starts. Single-family housing starts rebounded in 2024 amid low housing stock, but multifamily housing starts bottomed out. Still, contractors found stability in single-family attached projects. Industry revenue has been increasing at a CAGR of 1.8% over the past five years to total an estimated $31.5 billion in 2025, including an estimated gain of 1.9% in 2025. Over the past five years, lumber prices soared, driven by supply chain disruptions and environmental factors like wildfires and pest infestations. This has made profitability a challenge for contractors. Labor shortages exacerbated the issue, forcing wage hikes to attract workers as retirements outpaced the entry of new labor. Despite these pressures, slow growth among new entrants has mitigated some price competition. Meanwhile, home improvement projects offered some relief, though DIY trends and high interest rates tempered this growth. On the nonresidential front, contractors missed opportunities in surging warehouse and data center construction, where demand for steel and concrete sidelined wood. Wood framing contractors face a complex future shaped by persistent high rates and evolving construction demands. The potential for rate cuts could revive single-family projects, yet lumber tariffs and labor shortages loom large. Anticipated housing shortages might offer a silver lining in residential construction, but stricter fire-resistant codes in wildfire-prone areas challenge traditional wood framing. Contractors will need to adapt to labor shortages by embracing prefabrication and modular techniques. The growing demand for hotel and retail construction provides a promising avenue, while office-to-multifamily conversions could further boost opportunities. Industry revenue is forecast to climb at a CAGR of 2.1% to total an estimated $35.0 billion through the end of 2030.

Explore the factors affecting framing lumber prices in 2023, from supply chain disruptions and housing demand to environmental regulations and sustainable construction practices. Understand the market volatility and its impact on the construction industry.

The global framing timber market exhibits robust growth, driven by the burgeoning construction industry, particularly in residential and commercial sectors. While precise market size data for 2025 isn't provided, leveraging industry reports and considering typical CAGR values for construction materials (let's assume a conservative CAGR of 5% for illustrative purposes), a reasonable estimate for the 2025 market size could be in the range of $50 billion. This is a projection and not an exact figure. This substantial market value is fueled by several key factors including rising urbanization, increasing disposable incomes leading to higher housing demand, and ongoing infrastructure development projects worldwide. The segment breakdown reveals a diverse landscape, with pine, oak, and spruce dominating the type segment and dwelling construction leading in application. Growing demand for eco-friendly and sustainable building materials also contributes to market growth, boosting the adoption of responsibly sourced timber. However, challenges such as fluctuating timber prices, environmental regulations concerning deforestation, and competition from alternative building materials like steel and concrete pose restraints on market expansion.
Looking forward, the market is poised for continued expansion throughout the forecast period (2025-2033). Maintaining our assumption of a 5% CAGR, the market size could reach approximately $78 billion by 2033. This growth will likely be influenced by technological advancements in timber processing and construction techniques, promoting efficiency and sustainability. Regional variations exist, with North America and Europe representing significant market shares due to established construction industries and high per capita income. The Asia-Pacific region, however, shows tremendous potential for future growth, driven by rapid urbanization and industrialization in countries like China and India. The competitive landscape is characterized by both large multinational corporations and smaller regional players, fostering innovation and ensuring diverse product offerings across various price points.

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.

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.

Trend Factor for the Lumber Market

Sustainable forestry and eco-certified lumber are gaining momentum

The lumber market is undergoing a significant transformation towards sustainability, characterized by an increasing demand for eco-certified and responsibly sourced wood products. Stakeholders including consumers, builders, and governments are emphas...

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 June 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 August of 2025.

Graph and download economic data for Producer Price Index by Commodity: Lumber and Wood Products: Softwood Lumber (WPU0811) from Jan 1947 to Jun 2025 about wood, commodities, PPI, inflation, price index, indexes, price, and USA.

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Reclaimed Lumber Market Size 2024-2028

The reclaimed lumber market size is forecast to increase by USD 8.2 mn at a CAGR of 3% between 2023 and 2028.

The market is experiencing significant growth due to increasing residential and commercial construction activities in North America. This trend is driven by the rising demand for sustainable and eco-friendly building materials. Additionally, the high wages in manufacturing hubs have led to an increase In the production and availability of reclaimed lumber. However, the market faces challenges such as the volatility in raw material prices and the availability of low-cost alternatives. Producers must navigate these factors to maintain profitability and meet the growing demand for reclaimed lumber. Overall, the market is expected to continue its growth trajectory, driven by the increasing focus on sustainability and the availability of ample supply from various sources.

What will be the Size of the Reclaimed Lumber Market during the Forecast Period?

Request Free SampleThe market experiences robust growth driven by the increasing demand for sustainable and eco-friendly construction materials. Reclaimed lumber, sourced from deconstructed buildings, infrastructure modernization projects, and FDI inflows, offers unique aesthetic appeal and authenticity, making it a popular choice for green homes, residential and commercial construction, flooring, furniture, and custom furniture. The market's size is significant, with applications spanning various sectors, including paneling and siding, cross-laminated timber (CLT), and wood-based construction. Environmental awareness and recycling initiatives fuel market expansion. Reclaimed lumber's use in sustainable construction practices, such as energy conservation, seismic performance, and landfill reduction, contribute to its popularity.Product innovation In the sector, including the development of new manufacturing techniques and treatments, further boosts demand. The trend toward sustainable building materials and eco-friendly practices continues to gain momentum, positioning reclaimed lumber as a preferred choice for construction activities.

How is this Reclaimed Lumber Industry segmented and which is the largest segment?

The reclaimed lumber industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments. End-userCommercialResidentialIndustrialGeographyEuropeGermanyUKNorth AmericaCanadaUSAPACChinaMiddle East and AfricaSouth America

By End-user Insights

The commercial segment is estimated to witness significant growth during the forecast period. Reclaimed lumber, sourced from deconstruction activities and waste management, holds substantial demand in developed countries for commercial applications. Composite reclaimed lumber is popularly utilized in developing countries due to its cost-effectiveness and versatility. The expansion of commercial building construction activities, driven by the growing service sector in countries like India, fuels the demand for reclaimed lumber. IT, telecommunications, and BPO industries' growth in cities such as Bengaluru and Delhi necessitates increased investments in commercial real estate, primarily in office and retail spaces and the hospitality sector. Wooden reclaimed lumber, including oak wood, longleaf, mountain pine, and steel, is used extensively for paneling, beams, and boards, contributing to sustainable building materials and eco-friendly practices.The adoption of green construction principles, LEED certification, and seismic performance requirements further boosts the market's growth. Wood-based construction materials, such as cross-laminated timber (CLT), offer energy conservation benefits and reduce environmental pollution and landfill reduction. DIY projects, artisanal crafts, antique furniture, and custom-manufactured furniture also utilize reclaimed lumber for its aesthetic appeal and authenticity.

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The Commercial segment was valued at USD 30.40 mn in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

Europe is estimated to contribute 50% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The European the market is poised for growth due to several factors. These include the rising emphasis on recycling, the superior structural properties of reclaimed lumber, and the increasing demand from industries such as construction, furniture manufacturing, and green building initiatives. Additionally

Graph and download economic data for Unit Labor Costs for Wholesale Trade: Lumber and Other Construction Materials Merchant Wholesalers (NAICS 4233) in the United States (IPUGN4233U101000000) from 1988 to 2024 about merchant, unit labor cost, wood, wholesale, materials, NAICS, trade, construction, and USA.

Graph and download economic data for Producer Price Index by Industry: Lumber and Other Construction Materials Merchant Wholesalers: Primary Services (PCU423300423300P) from Feb 2009 to Jun 2025 about merchant, wood, wholesale, materials, primary, construction, services, PPI, industry, price index, indexes, price, and USA.

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

The Engineered Wood I-joist market, valued at $1,526 million in 2025, exhibits a steady 5% CAGR, projecting robust growth to approximately $2,100 million by 2033. This growth is fueled by several key drivers. Increased construction activity in residential and commercial sectors, particularly in North America and Asia Pacific, significantly boosts demand. The inherent advantages of I-joists – superior strength-to-weight ratio, dimensional stability, and ease of installation – make them a preferred choice over traditional lumber, driving market expansion. Furthermore, sustainable building practices are gaining traction, with engineered wood products like I-joists aligning well with environmentally conscious construction methodologies. While fluctuating lumber prices and potential supply chain disruptions pose challenges, the overall market outlook remains positive due to ongoing infrastructure development and the increasing adoption of advanced building techniques globally. The segment breakdown reveals strong demand across various applications, including floor and roof framing and studwork walls, with Solid Sawn and LVL types catering to diverse project needs. Major players like Boise Cascade, Weyerhaeuser, and Roseburg are key contributors to market share, constantly innovating to improve product quality and expand their market reach. The competitive landscape is marked by both established industry giants and regional players. The North American market currently holds a significant share, driven by robust construction activities and a well-established supply chain. However, emerging economies in Asia Pacific are exhibiting rapid growth potential, fueled by urbanization and infrastructure development initiatives. The European market, while mature, continues to see steady growth driven by refurbishment projects and sustainable building regulations. Future market penetration hinges on effectively addressing challenges such as raw material price volatility and ensuring the sustainability and responsible sourcing of timber resources. Technological advancements in manufacturing processes, coupled with strategic partnerships and acquisitions, will likely shape the market's future trajectory. The long-term forecast indicates continued expansion, driven by the intrinsic benefits of I-joists and the growing preference for efficient and sustainable building materials.

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%.

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.