Can High-Performance Building Strategies Decrease Lumber Demand?

Housing Affordability
Published

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.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

IBS

Feb 20, 2026

NAHB Announces Best of IBS Winners at International Builders’ Show

The National Association of Home Builders (NAHB) named the winners of its 13th annual Best of IBS™ Awards during the NAHB International Builders’ Show® (IBS) in Orlando. The awards were presented during a ceremony held on the final day of the show.

Sponsored Content

Feb 20, 2026

How Land Developers are Leveraging AI to Move Faster

AI is helping today's leading land development teams operate differently. By connecting data across ownership, zoning, infrastructure, and development activity, AI can surface early signals of opportunity and support faster, more informed go/no-go decisions

View all

Latest Economic News

Economics

Feb 20, 2026

New Home Sales Close 2025 with Modest Gains

New home sales ended 2025 on a mixed but resilient note, signaling steady underlying demand despite ongoing affordability and supply constraints. The latest data released today (and delayed because of the government shutdown in fall of 2025) indicate that while month-to-month activity shows a small decline, sales remain stronger than a year ago, signaling that buyer interest in newly built homes has improved.

Economics

Feb 20, 2026

U.S. Economy Ends 2025 on a Slower Note

Real GDP growth slowed sharply in the fourth quarter of 2025 as the historic government shutdown weighed on economic activity. While consumer spending continued to drive growth, federal government spending subtracted over a full percentage point from overall growth.

Economics

Feb 19, 2026

Delinquency Rates Normalize While Credit Card and Student Loan Stress Worsens

Delinquent consumer loans have steadily increased as pandemic distortions fade, returning broadly to pre-pandemic levels. According to the latest Quarterly Report on Household Debt and Credit from the Federal Reserve Bank of New York, 4.8% of outstanding household debt was delinquent at the end of 2025, 0.3 percentage points higher than the third quarter of 2025 and 1.2% higher from year-end 2024.