• Futures fell by 41%.
• "The rapid decline suggests a bubble that has burst".

Source: Wall Street Journal

• Before the fall, lumber prices went from ~$250/1K feet to ~$1,700.
  • Causes:
    • Longhorn Beetle decimated nearly a decade's worth of Canadian Lumber, a major supplier for the US market.
    • 2017-2018 wildfires.
    • The Mortgage-backed Securities Crash of 2008 led to a 49% decrease in lumber demand and the subsequent closure of 30+ large sawmills.
    • Stimulus cash, low-interest rates, and the shift to work-at-home caused a surge in home improvement and renovations.
    • Builders and Supply Depots hoarding wood stock (Source: WSJ)
  • Results:
    • +$36K on the average single-family home.
    • +$13K on the average multifamily unit, $119/month in rent.

Source: National Association of Home Builders, the Hustle, NASDAQ