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Timber pricing has been relatively stable through the pandemic. Compared to lumber prices, which have increase dramatically over the last year, timber prices have only increased in the single digits. However, timber prices are likely headed for a long-term trend due to new demand.

“We believe timber and timberland as an investment are on long-term uptrends. The fundamental drivers are the value of the trees at maturity and underlying land. Both factors currently have upward pricing pressure,” Scott Reaves, director of forest operations at Domain Timber Advisors, tells GlobeSt.com. “Sawtimber pricing is benefitting from increased consumption for use in home remodeling and construction. Land is appreciating due to population increases and individuals’ growing demand to own parcels outside cities. These trends are especially evident in the U.S. South as demonstrated in the attached map regarding population growth and lumber mill expansions.” Reaves says that prices could be headed as high as $35-$40 per ton.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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