What This Chart Shows
This chart displays the historical price of lumber, a critical commodity used in construction, housing, manufacturing, and industrial production. Lumber prices reflect long‑term trends in homebuilding activity, supply chain conditions, sawmill output, and broader economic cycles.
The chart helps users track periods of housing booms, supply shortages, construction slowdowns, and extreme price volatility — especially notable during the 2020–2022 period when lumber experienced historic spikes. Lumber is widely followed by analysts, builders, and investors due to its tight connection to the real estate and construction sectors.
Why Lumber Matters
Lumber is one of the most important building materials in the world. Its price is shaped by:
- Housing demand and construction activity
- Sawmill capacity and production bottlenecks
- Wildfires, storms, and other supply‑side disruptions
- Transportation and logistics costs
- Interest rates and mortgage demand
- Global trade flows and tariffs
Because lumber is essential for residential and commercial construction, its price plays a major role in housing affordability, inflation, and economic growth.
Key Insights
- Lumber is a core construction commodity with strong ties to the housing market.
- Prices are highly sensitive to supply chain disruptions and sawmill output.
- Housing demand and mortgage rates heavily influence lumber price trends.
- Natural disasters and weather events can cause major supply shocks.
- Lumber markets are among the most volatile in the commodity space.
Source
U.S. Bureau of Labor Statistics (via FRED), Series ID: PLUMBERUSDM