Is now the time to invest in Timberland?
- Homebuilding activity is typically the largest driver of timber demand in the US. We expect the current housing shortage coupled with pent-up demand from younger homebuyers to support homebuilding activity going forward, potentially benefiting timber forest land values.
- Additionally, the possibility of moderating mortgage rates could further stimulate homebuilding activity.
- Looking ahead, we anticipate the trend towards constructing more single-family homes over multi-family units to continue, boosting lumber demand per unit. This shift is influenced by the growing preference for lower-density suburban and rural housing as opposed to urban living.
- Furthermore, the growing acceptance of engineered wood products like cross-laminated timber (CLT) in medium-rise construction projects is also contributing to the increase in lumber demand.
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