Story perspectives

Lumber Prices Plummet: Housing Market Faces 2025 Decline

9/11/2025

Summary

Story summary

Lumber prices in the U.S. have fallen to approximately $526.50 per thousand board feet, indicating potential issues for the housing market.
This decline results from oversupply due to stockpiling and reduced demand from high mortgage rates.
Construction activity is slowing, with single-family home building down nearly 4% in 2025.
Builders are cutting lumber purchases, creating excess inventory and prompting price reductions on new homes.
The NAHB forecasts a decline in home building for 2025, with a potential rebound in 2026 if mortgage rates drop.

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Story summary

Lumber prices in the U.S. have fallen to approximately $526.50 per thousand board feet, indicating potential issues for the housing market.
This decline results from oversupply due to stockpiling and reduced demand from high mortgage rates.
Construction activity is slowing, with single-family home building down nearly 4% in 2025.
Builders are cutting lumber purchases, creating excess inventory and prompting price reductions on new homes.
The NAHB forecasts a decline in home building for 2025, with a potential rebound in 2026 if mortgage rates drop.