Lumber Booms in Midst of U.S. Homebuilding’s Bust: Chart of Day

Lumber has bounced back to prices seen during last decade’s boom in U.S. housing even though the homebuilding industry, one of the biggest sources of demand, is still in a bust.

The CHART OF THE DAY illustrates how the price of lumber futures on the Chicago Mercantile Exchange compared with the annual rate of housing starts, as compiled by the Commerce Department, during the past five years.