Slower Housing Market Weighs on Lake States Pine Prices
Read More About Housing Trends and Their Impact on Pine Sawlog Prices.
Slow housing construction and home sales appear to be impacting pine markets nationally and in the Lake States.
With home building permits down by 27% over the past 3 ½ years, pine saw log prices are showing the impact. A similar decline hit Michigan and Wisconsin timber prices, with much of the impact this year. In both states, average prices dropped below $100 per thousand board feet in 2026 for the first time in the last five years.
In Minnesota, there was a marked contrast in pine sawlog prices, with prices increasing from very low levels in 2022.
These trends were reflected in a Wall Street Journal story last week on the closure by West Fraser of two mills in the South by the end of this year: a lumber mill in Arkansas and an OSB mill in Alabama.
West Fraser CEO Sean McLaren was quoted as saying the closures were intended to “align our supply with customer demand”. Much of those mills’ products were intended for new housing and home improvement.
Meanwhile, other home building costs are increased by tariffs on aluminum. Other non-wood housing costs have been hit by competing high demand for data center construction. Homebuilders' costs are going up in the process.
Demand for houses has slowed as prospective buyers faced average 30-year mortgage rates in excess of 7% in October.
