Today we are diving into a major topic that affects every developer, real estate investor, and homebuilder planning project starts for 2027: The North American Softwood Lumber Market.
How can we have sawmill closures and a supply glut at the exact same time?
To understand this, we have to look at end-use demand. For the past two years, elevated mortgage rates and high overall construction input costs have dampened single-family housing starts and slowed major residential remodeling. When builders slow down, building material distributors adopt what’s known as a "just-in-time" purchasing model. Because dealers don’t want to hold expensive inventory on their yards, wholesale distribution channels periodically back up, creating the appearance of a massive supply glut on the local level.
------------
**Real Estate Espresso Podcast:**
Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)
iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)
Website: [www.victorjm.com](http://www.victorjm.com)
LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)
Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)
Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)
**Y Street Capital:**
Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)
Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)
Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)