By dinastya @Adobe Stock

The recent wildfires in Southern California, which destroyed over 12,000 structures, are expected to drive increased demand for lumber as rebuilding efforts begin, though the pace will depend on insurance and permitting processes, according to Myra P. Saefong of MarketWatch. Saefong writes:

The Palisades, Eaton and Hurst wildfires in Southern California have destroyed more than 12,000 structures, raising the likelihood of a spike in demand for lumber in the months and years ahead.

The rebuilding process after events such as these “typically drives a significant demand for building materials, particularly lumber, given its foundational role in construction,” said Michael Goodman, director of finance and general counsel at building-materials wholesaler Sherwood Lumber.

Demand for construction materials will “undoubtedly rise,” but the pace will depend on the “timeline for insurance assessments, debris removal, permitting and rebuilding efforts,” Goodman said. Historically, it can take several months for the full impact to hit the market, he said. […]

Replacing 12,000 structures would require an estimated 10,000 to 20,000 truckloads of lumber, Goodman said. A 48-foot flatbed truck can haul 45,500 to 52,000 pounds of lumber, according to Union Pacific. The number of pounds per 1,000 board feet varies by tree species, but the Global Trade Network has figures ranging from 2,250 to 5,350 pounds per 1,000 board feet of freshly cut lumber. […]

“The bottom line is that we need Canada’s vast and flowing ‘lumber fields’ to supply our domestic housing needs — always have and always will,” said Kuta, who also pointed out that lumber grows in forests, not fields. […]

He pointed out that Southern California has unique building codes, including fire-resistance requirements that may influence material choices. That could lead to “diversified demand for engineered-wood products, siding and other specialized materials in addition to standard framing lumber,” he said. […]

There’s likely a “significant potential for investors in the housing sector in 2025 and beyond,” Kuta said, “but you have to have a longer time frame from an investment standpoint.”

The realistic expectation when it comes to demand due to the devastation in California, he said, is “eight to 12 months out, based on on insurance claims, government red tape and lack of construction labor.”

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