Lumber Executive Says Lower Prices Have Rekindled Building Interest

Kyle Little, COO of New York-based lumber distributor Sherwood Lumber, says current lumber prices have welcomed more construction projects, especially in the multifamily and commercial segments. Lumber broke records in May this year when prices hit $1,670.50 per thousand board feet. The price now rests at $480.40 per thousand board feet, the lowest level since July 2020 and in the 13th consecutive week of price declines. Little says interest has grown during the past three weeks, turning into actual orders for the second half of the year.

Current lumber prices make “absolute sense,” he said, referencing the industry’s recovery from pandemic-driven sell-offs in the first and second quarters of 2020, which were followed by a major increase in costs. In June, as lumber traded above $1,100 per thousand board feet, Little told CNBC he recommended people wait to begin their building projects, predicting further relief in wood prices.

On Thursday, Little said the lumber market is now “going through this equilibrium stage or search for equilibrium.”

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