Winter 2023 | No. 159
It looks like a trend is emerging in the housing market! Housing starts increased in November, continuing a slow but steady rise that began in September. The better way to look at it is by examining the two price plateaus that occurred this year. In the early part of the year, January through April, F&W’s Lumber-Use Adjusted Housing Starts ranged from 1.025 to 1.07 million, annualized. After taking a big jump in May, starts dropped back down, but not to the earlier levels. In the latter part of the year, adjusted starts ranged from 1.09 to 1.31 million.
The F&W-adjusted starts factor in the different lumber usage in single-family homes vs. multiple-family buildings, which is necessary for long-term comparisons. During the boom period of 1994 to 2006, adjusted starts were in excess of 1.2 million. We find ourselves back in that range, with November adjusted starts surpassing 1.31 million. Watch this number. If it stays above 1.2 million for several months, we could start to see demand impact timber stumpage prices.