Lumber prices have doubled so far in 2021 and are up 250% since last spring as the commodity gets squeezed on both the demand side and the supply side.
A consistent rise in demand for homes, combined with tightening supply of the commodity due to timber constraints in Canadian forests has led to the commodity surging to a record $1,500 per thousand board feet this week.
And an aging millennial population that is transitioning to mortgage debt from student loan debt will likely help sustain demand for new homes in the years ahead.
This all sets up a favorable backdrop for companies that manage forests for timber, operate sawmills, and produce home building products out of wood.
Advertisement
These are the 4 lumber-related stocks that have seen strong rallies so far in 2021 as prices for lumber soar.
NewsletterSIMPLY PUT - where we join the dots to inform and inspire you. Sign up for a weekly brief collating many news items into one untangled thought delivered straight to your mailbox.