As the result of the Russia-Ukraine war and supply chain disruptions, lumber prices have been surging. Since Russia’s invasion, lumber prices have climbed 14% to $1,452, just 15% below the all-time peak. And according to Joshua Dean from the Greater Birmingham Association of Home Builders, soaring gasoline prices have increased transportation cost for materials, further pushing lumber prices higher.
Amid skyrocketing inflation and other macro headwinds, lumber REITs are strong investments considering their ability to provide diversification benefits and shield investors from the rising inflation. Also, REIT investments are ideal in the current bear market because REITs are required to pay out 90% of their income in the form of dividends.
