Lumber prices have reached their highest level in more than a year, and Citi analyst Anthony Pettinari believes high lumber prices are here to stay. According to Pettinari, dealers underestimated the strength of the housing market in Q1.

“YTD starts have come in stronger than expected (1153k avg. vs. 1038k LY) with a favorable mix (single-family +18 percent vs. multi-family -2 percent); single family starts typically use ~3x the Wood Product volume of multi-family starts,” Pettinari explained.

Citi sees several reasons why lumber prices could remain high throughout the summer.

“Besides strong demand amid lean inventories, we think…

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