Lumber futures fell toward $550 per thousand board feet, hitting a two‑month low as persistent imbalances in the North American housing market continue to weigh on valuations. Although January housing starts rose to 1.487 million units, the increase in multifamily projects failed to offset a 2.8% decline in single‑family construction, which remains the primary driver of lumber demand.
Elevated mortgage rates and still‑high home prices have stalled new residential developments, leaving distributors with an oversupply of seasonal inventory. This surplus has forced regional dealers to offer steep discounts to clear yard space amid unseasonably weak jobsite activity.
At the same time, a strengthening U.S. dollar has raised the relative cost of domestic production and eroded export competitiveness for major mills. Nonetheless, the escalating conflict in the Middle East and rising energy prices remain key variables that could alter the inflation outlook for construction materials.
