U.S. Mass-Timber Building Count Is Set to Pass 1,500

Mass timber is moving beyond a niche construction method

Projects launched in 2026 are expected to push the number of U.S. buildings using mass timber past 1,500, according to the WoodWorks-Wood Products Council. That is up from fewer than 100 buildings a decade ago and marks a notable expansion for a material still competing with steel and concrete.

Mass timber is engineered from layers of dimensional lumber joined into structural beams and panels. Developers are using it in apartment buildings, hotels, offices and public facilities. The Real Deal highlighted projects ranging from a 25-story Milwaukee apartment tower to Walmart’s 2.4 million-square-foot office development in Bentonville, Arkansas.

Building-code changes have helped. The 2021 International Building Code increased the permitted height of qualifying mass-timber buildings from six stories to as many as 18. Meanwhile, WoodWorks estimates that the country is adding about 10 million square feet of mass-timber construction annually, compared with a potential domestic market of roughly 1 billion square feet.

Those figures show room for growth, not guaranteed demand. Mass timber can cost more upfront than steel-reinforced concrete. Supporters argue that prefabricated components, smaller crews, faster assembly and exposed wood interiors can reduce labor, scheduling and finishing expenses. Whether that tradeoff works depends on the project, local code administration, engineering requirements and available contractors.

Development potential matters more than the material itself

For most homeowners, the rise of mass timber does not create an automatic price premium. A conventional house is not suddenly worth more because a nearby developer could construct a timber-framed apartment or office building. Buyers still price residential property primarily through comparable sales, condition, location, lot utility and financing conditions.

The trend is more relevant to sellers of larger parcels, underused commercial sites, properties in redevelopment districts and land near employment or institutional centers. Mass timber gives developers another way to evaluate construction costs and design. It may make certain projects more feasible, but the underlying land still needs suitable zoning, access, utilities and market demand.

A seller should therefore separate existing-use value from development value. Existing-use value reflects what the property supports today. Development value depends on what a buyer can legally and economically build after accounting for approvals, site work and construction costs. Listing a property as a mass-timber opportunity without evidence of developer interest is unlikely to support a higher asking price.

Timberland owners face a different calculation. The Real Deal reported that sawmill closures, lower wood prices and weaker demand from pulp and paper producers have increased pressure on some owners to consider more profitable land uses. Yet a growing construction category does not mean every wooded parcel gains value. Species, harvest economics, transportation distance and mill access affect timber value, while roads, utilities and entitlements affect development value.

Before setting a price, sellers should identify which buyer pool is actually credible: homeowners, builders, commercial developers, institutions, conservation buyers or timber operators. The strongest pricing strategy is based on the most probable use, with alternative uses treated as upside rather than assumed value.

Developer interest can produce a longer and less certain timeline

A retail homebuyer can often evaluate a house through an inspection, appraisal and loan process. A developer considering apartments, a hotel or a public-facing project may need substantially broader diligence. That can include zoning analysis, environmental review, surveys, utility capacity, traffic considerations, design work and early conversations with local officials.

Mass-timber construction adds another layer because the buyer may need specialized engineering, fire and building-code review, supplier coordination and contractor availability. The expanded international code framework helps, but local adoption and interpretation can vary. A permitted building height in a model code is not the same as an approved project on a particular parcel.

Sellers should read proposed timelines alongside the buyer’s exit rights. A long diligence period may be reasonable when a buyer is spending money to test feasibility. It can also leave the property tied up while the buyer decides whether to proceed. Important terms include extension options, refundable deposits, approval contingencies, assignment rights and the point at which earnest money becomes nonrefundable.

Certainty has value. A lower offer with limited contingencies and a defined closing path can produce a better outcome than a higher headline price dependent on rezoning, financing or a lengthy feasibility period. Sellers who need a specific moving date should weigh that timing risk before granting a developer control of the property.

Compare the seller net, not the architectural story

The practical question is not whether mass timber is innovative. It is whether a particular buyer’s proposal leaves the seller with an acceptable net after time, costs and uncertainty.

Compare offers on one worksheet. Start with price, then account for commissions or representation costs, requested credits, unpaid taxes or liens, closing expenses, carrying costs during diligence and any work the seller must complete. For land or redevelopment sales, also note whether the buyer expects demolition, environmental cleanup, tenant removal, surveys or entitlement cooperation from the owner.

Do not let a developer’s projected building economics substitute for evidence about land value. The Savannah hotel cited by The Real Deal initially faced a structural-cost increase of 10% to 20% from mass timber, although a six-person assembly crew and reduced finishing work helped offset some costs. That example illustrates why developers study the entire budget. It does not establish a universal premium for the site beneath the building.

Homeowners near a proposed mass-timber project should also avoid pricing ahead of approvals. A new apartment, office or public building may eventually affect neighborhood demand, traffic or nearby services, but an announced concept is not a closed comparable sale. Price from current evidence and update the strategy when permits, construction or completed transactions provide measurable support.

Mass timber’s expansion is a real development trend, and passing 1,500 U.S. buildings is a meaningful marker. For sellers, however, the useful takeaway is disciplined rather than dramatic: identify the property’s realistic buyer pool, document any development potential, allow for deeper diligence and judge every proposal by its likely net and probability of closing.