US lumber prices fell at the start of the year, with futures contracts dropping to near their lowest levels since late 2024. This decline reflects a weakening of real demand for wood, particularly due to sluggish construction activity and a lack of renovations. Demand remains subdued as the housing market slows and mortgage costs rise, limiting new construction projects and postponing material orders. This drop reflects the ongoing supply-demand gap in the market, with oversupply persisting and inventories remaining unsustainable. These developments underscore the challenges facing the US lumber industry within a broader economic environment characterized by stable borrowing costs and weak near-term demand.