More than 3 million trees are being planted in the New South Wales Central West as heavy rainfall creates the ideal conditions for growth.
However, a timber shortage remains after the 2019-20 bushfires wiped out a quarter of the state's forestry assets, resulting in a rise in the cost of housing construction.
The seedlings will be replanted across 2,400 hectares south of Oberon in the Vulcan State Forest and on Mount Canobolas near Orange.
Jason Molkentine from the Forestry Corporation of NSW said it was seeing record survival rates of 95 per cent for the trees planted.
"The last couple of years we have been blessed with a lot of rainfall and that has made perfect conditions for planting and survival of our trees," he said.
"I appreciate a lot of people have been suffering over the last 12 months with the amount of rainfall but for the trees, they have been a blessing."
During the 2019-20 bushfire season, 5.3 million hectares of land were burnt across the state.
About 25 per cent of NSW timber plantations were destroyed during that summer.
Mr Molkentine said the current conditions were providing the opportunity to recover the losses seen.
"That will continue for the next four or five years so we get back onto the basis of managing the full asset, which is about 230,000 hectares of plantation."
Shortage drives up costs
Prior to the Black Summer fires, one in every four homes built in NSW used timber sourced from local plantations.
NSW Master Builders Association executive director Brian Seidler said the reduced supply had translated into a 40 per cent increase in the cost of timber.
"If you are building a $500,000 home, single level, we estimate roughly that the timber prior to the fires was valued at $60,000," he said.
Mr Seidler said the good conditions were a welcome relief but were unlikely to have an impact on prices in the next 12 months.
"It is good news for the future but will it impact on reducing prices in the immediate future? I would think not," he said.