The huge Millennial generation has not yet reached home-buying age and credit remains tight, causing MetLife to predict that housing starts will reach 1.5 million by 2020, 16 percent below consensus.
The resulting weakened demand for lumber will continue to weigh on pricing and demand over the near term. However, emerging supply shortages will bolster U.S. timberland investments, according to Millennials, Housing, and the Timber Recovery,