What factors determine construction lumber prices?

As of 2015, factors that affect construction lumber prices include the number of homes under construction at any given time, environmental concerns, foreign exports and overall domestic needs. Due to overall economic and market volatility, lumber prices are subject to varying price fluctuations.

The price of lumber is regularly subject to a variety of changing consumer needs and economic conditions, such as market upswings or downswings, competition, and regulations. To better help buyers and sellers predict potential profits and losses, and to help the industry protect from volatile price swings, lumber commodities contracts are traded on the Chicago Mercantile Exchange.