The price of lumber in the US is rising. In the 2000’s, 1000 board feet of lumber sold for about $400. Now, the prices have raised to $513. This is due to a decrease in supply.
Supply Determinant: Factors of Production
The Natural Forest Protection Program in China cut down China’s deforestation rate from 2.7% annually to less than 1%, which leads to fewer imports.
Severe bug infestations along with many wild fires in British Columbia destroyed vast amounts of trees, which are essential to the production of lumber .
Increased tariffs on Canadian lumber further decrease the volume of lumber imported into the US.