Multifamily Construction Time Hits 19.6 Months: Lumber Demand Impact

Impact on Your Procurement Strategy

The slight overall reduction in multifamily (MF) completion time to 19.6 months signals that structural constraints—primarily skilled labor shortages—are still dominating the construction cycle. For dimensional lumber buyers, this sustained, lengthy timeline is actually a stabilizing factor. It ensures that the massive volume of lumber required for MF projects (studs, MSR lumber, and dimensional framing) is ordered and consumed over an extended period, preventing the sharp, immediate demand spikes that lead to acute price volatility in the SPF and SYP markets.

However, procurement managers must look beneath the aggregate number. While the largest projects (20+ units) still take a staggering 22.1 months, the smaller 2-to-4-unit structures saw a substantial acceleration, shortening by 2.3 months to finish in 15.3 months. This segment, often utilizing conventional stick-framing methods, represents a faster material pull-through cycle. Distributors heavily servicing smaller regional builders or specialized infill developers must adjust inventory planning for these accelerated timelines. When these projects frame up, their demand window is tighter, necessitating quicker replenishment of standard dimensional lumber and studs.

Geographic variability is now a critical factor in inventory management. The Northeast, with an average duration of 23.4 months, allows for comfortable lead times and strategic purchasing for specialty lumber components. In contrast, the Midwest (17.3 months) and the South (18.5 months) are the fastest regions to complete projects. Distributors operating in these markets face higher pressure to maintain robust, localized inventories of commodity dimensional lumber. A 17.3-month timeline means the time between groundbreaking and the final framing package order is significantly shorter than the national average, requiring faster turnover and potentially exposing buyers to immediate price risk if supply lines are thin.

The outlook remains focused on predictable, long-term demand. The slight improvement indicates that while the market is slowly adapting to labor issues, a sudden return to pre-pandemic construction speed is unlikely. Buyers should treat the bulk of MF demand as a steady base load for Q4 2025 and Q1 2026. The key tactical adjustment is regional: increase flexibility and shorten lead times for core dimensional products (2x4s, 2x6s) servicing the accelerated markets (Midwest/South), while maintaining strategic, longer-term purchasing for complex projects in the slower Northeast and West.

Key Takeaways

• Anticipate steady, drawn-out demand for dimensional lumber from the MF sector, limiting sudden price spikes due to the average 19.6-month completion time.

• Prioritize quicker replenishment cycles for standard dimensional framing packages in the Midwest and South, where construction times are fastest (17.3 months).

• Use the extended 23.4-month timelines in the Northeast to secure strategic, forward contracts on high-grade lumber or specialty items with longer lead times.

Market Outlook

Pricing Trend: STABLE Confidence Level: MEDIUM Recommended Action: Review regional inventory models immediately. Increase rolling stock levels of core SPF/SYP dimensional lumber by 5-8% in distribution centers serving the Midwest and South to accommodate faster pull-through from small (2-4 unit) MF projects finishing in 15.3 months.

How LumberFlow Helps

Use LumberFlow's automated price alerts to track SPF and SYP pricing volatility specifically in the faster regional markets (Midwest/South). Our quote comparison dashboard helps you rapidly source and secure replenishment orders for dimensional lumber to meet compressed project timelines without sacrificing margin.

Ready to stay ahead of market trends? Book a consultation with our team to see how LumberFlow's procurement platform transforms dimensional lumber buying.