Can High-Performance Building Strategies Decrease Lumber Demand?
Lumber prices have soared because of supply-chain issues and other COVID-19-related challenges. Solving the lumber crisis is a critical priority for NAHB, particularly because of housing affordability implications. Potential solutions that use high-performance building strategies can reduce the amount of lumber needed to build a home and reduce the demand on the timber industry.
Sustainable timber has several elements that make it more environmentally friendly:
- Harvesting: Trees must be cut down in a manner that protects the surrounding ecosystem by avoiding damage to local flora and fauna. Additional trees need to be planted to replace what was cut down.
- Sourcing: Sustainable timber could be recycled or reclaimed. For example, many demolished buildings or dilapidated bridges still have useable wood that can be saved for other projects.
- Byproducts: Sustainable timber considers what byproducts are made from the material and how are pollutants within the material are addressed.
One way to decipher how wood is harvested is to check if the material has been certified to a standard by an independent organization, such as the Sustainable Forestry Initiative (SFI) or the Forest Stewardship Council® (FSC). Home Innovation Research Labs also certifies green products (including wood and engineered wood products), and using those products can earn points toward the National Green Building Standard (NGBS) Green Certification.
Below are a few examples of practices within the 2020 NGBS that address issues related to sourcing, usage reduction, recycled content and pollutant minimization for wood products:
- Chapter 6 Resource Efficiency - 2(1) "Structural systems are implemented that reduce and optimize material usage. Minimum structural member sizes necessary in accordance with advanced framing techniques." 3 points available for 601.2(1), 9 points max for 601.2.
- Chapter 6 Resource Efficiency - 2(2) "At least 2 responsible or certified wood-based products are used as major components of the building." 4 points available.
- Chapter 6 Resource Efficiency - 1 "Building materials with recycled content are used for two minor and/or two major components of the building." 1-6 points available.
- Chapter 6 Resource Efficiency - 1.2.1 "A product with improved environmental impact measures compared to another product(s) intended for the same use is selected." 2 points for product with 4 impact measures; 3 points for product with 5 impact measures. 10 points max.
- Chapter 6 Resource Efficiency - 1 "Regional materials are used for major and/or minor components of the building." 10 points max, 2 points awarded for each major component and 1 point awarded for each minor component.
- Chapter 9 Indoor Environmental Quality - 4(1) "At least 85% of structural plywood used for floor, wall, and/or roof sheathing is compliant with DOC PS 1 and/or DOC PS 2. OSB used for floor, wall, and/or roof sheathing is compliant with DOC PS 2." Mandatory.
Strategies highlighted in the above NGBS practices can help to reduce the amount of wood used in a home — potentially alleviating some of the ongoing issues with supply constraints and material costs, while also emphasizing the importance of how building products are sourced.
To stay current on the high-performance residential building sector, with tips on water efficiency, energy efficiency, indoor air quality, and other building science strategies, follow NAHB’s Sustainability and Green Building team on Twitter.
Latest from NAHBNow
Feb 05, 2026
3 Major Factors Limiting American Construction ProductivityA recent Goldman Sachs report explores why the U.S. construction industry has underproduced compared to other countries’ construction industries. Between 1970 and 2024, productivity in the U.S. construction industry fell 30% while overall labor productivity more than doubled.
Feb 05, 2026
NAHB’s Monthly Update Highlights Housing Priorities and Industry OutlookTo help members articulate key housing priorities, NAHB’s Monthly Update provides the latest messaging framework for the Federation. See the current advocacy updates and more.
Latest Economic News
Feb 05, 2026
Job Openings Fall as Labor Market WeakensRunning counter to the data for the full economy, the count of open, unfilled positions in the construction industry increased in December, per the delayed Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS). The current level of open jobs is down measurably from two years ago due to declines in construction activity, particularly in housing.
Feb 04, 2026
Mortgage Rates Declined Despite Higher Treasury YieldsLong-term mortgage rates continued to decline in January. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.10% last month, 9 basis points (bps) lower than December. Meanwhile, the 15-year rate declined 4 bps to 5.44%. Compared to a year ago, the 30-year rate is lower by 86 bps. The 15-year rate is also lower by 72 bps.
Feb 03, 2026
Homeownership Rate Inches Up to 65.7%The latest homeownership rate rose to 65.7% in the last quarter of 2025, according to the Census’s Housing Vacancy Survey (HVS). While this was a modest quarterly increase, the broader picture continues to reflect significant affordability challenges. With mortgage interest rates remaining elevated, and housing supply still tight, housing affordability is at a multidecade low.