Millennial home buyers and the work-from-home trend will keep lumber demand robust despite surging inflation, according to major Canadian producer Resolute Forest Products Inc.
The work-from-home trend is here to stay, and people who moved during the pandemic still want to do renovations, said Chief Executive Officer Remi Lalonde. In addition, the U.S. doesn’t have enough inventory to meet demand as millennials enter their prime years for purchasing a home, he said.
“People need to buy homes,” Lalonde said Thursday in a telephone interview. Demand for lumber isn’t “going to dry up.”
Lumber prices have been volatile throughout the pandemic. They touched record highs last May during a homebuilding boom only to collapse as high prices stifled demand. Canfor Corp. said this week that new home construction will face increased headwinds as high inflation and rising interest rates make homes less affordable.