Construction is booming, and lumber prices are soaring. But timberland owners whose raw materials are in demand are suffering stagnant timber values.
In the fourth quarter of 2019, Alabama sawtimber averaged $22.84 a ton. It rose just 69 cents in a year to $23.53.
In nearly the same time, low interest rates fueled a building frenzy. From early 2020 to 2021, a thousand board feet of 2-by-4 framing lumber jumped from $370 to $1,155. Oriented strand board (OSB) increased from $255 to $795 per thousand square feet.