The Building Materials Market: Spring Pricing

UPDATED: March 2026

New housing starts declined this past year nationally, though more than half of the new starts took place in the South. Despite various market conversations across the nation, our geography has remained robust. While tract housing has declined, custom builds and repair/remodeling are still going strong. Due to tariffs, we have seen a purchase decline in Canadian SPF lumber and Brazilian plywood, in turn strengthening US West Coast lumber, Southern pine lumber, and Southern pine plywood. Mills responded to economic uncertainties by drawing down production in the fourth quarter. We often see a lift in market numbers going into the first quarter, and this year is no exception. What is driving those higher numbers, however, is not optimism amid rising demand, but rather weak production. February winter weather impacted production and slowed demand.

What is not known at this point is any change in interest rates, any local legislation to reduce allowable lot size, or any initiative at the national level to promote growth.

Just from the end of 2025 to the end of January, OSB rose in cost by 30%, as did Southern pine studs. If there is any uptick in construction activity on a national level, we could see a strong rise in market costs of those and all other lumber and panel products.

Most categories have been affected by tariffs. Steel tariffs have eased somewhat, but the bigger reason some prices haven’t increased as expected is a slowdown in construction activity. Roofing materials, which were expected to be in short supply last year, are now easier to find. Products made from oil-based materials, like vinyl and PVC, have also seen prices come down. However, one of the largest fiber cement siding manufacturers recently closed two plants, which means materials may have to travel farther to reach customers, increasing overall delivery costs.

Here's what we see now with some of the lumber and other building products in high demand.

• Framing Lumber:
  Lumber is on the upswing, consistent with the time of the year. There are too many factors in the market to predict what will happen later in the year. Because of this, buyers nationally are keeping purchases close to actual sales and not making long-term deals.
   
  Southern Yellow Pine is moving along with only slight price variations as of late. The market is still slightly overproduced, supply vs. demand, but nothing like last year.
   
  Western species weathered the first quarter well, with steady but not remarkable trading keeping numbers flat to up through most of the first quarter. Transportation issues are the main concern due to a lack of trucks available nationwide.
   
• OSB and Plywood:
  Structural Panels are on the rise, with OSB ship times of three to four weeks. OSB is struggling due to the winter storms, mechanical breakdowns at mills, and trucking issues. The market has been flooded with requests, making it more difficult to purchase open market OSB. With Brazilian supply reduced, plywood prices are expected to continue to trend upward.
   
• Rebar:
  While impacted by tariffs, rebar is not accelerating due to slow construction activity. Most rebar comes from melted scrap, whether imported or domestic. As new domestic mills come on board, along with the expected increase in available import bar, this should increase the available supply to help stabilize the market.
   
• T-Posts:
  A warmer February has caused the fencing season to begin about six weeks earlier than normal. Mills were not prepared for an early start to fencing, which has led to a shortage in supply. Lead times have begun to increase over the last few weeks as retailers ramp up their order files. McCoys works very closely with several suppliers, and our stores remain adequately stocked.

McCoy's merchandising and pricing teams source high-quality products and keep them in stock at the best prices. Our millwork works as fast as possible to get doors and windows shipped out. If you have any questions about the materials listed above or other products, please let us know by calling our hotline at 1-877-542-8986 or dropping by one of our stores. Let us know how we can help – we're here to serve you.