The U.S. mass timber construction market is projected to grow from $0.39 billion in 2025 to $1.07 billion by 2033, according to a new report. The growth is driven by 2021 International Building Code revisions that now permit timber buildings up to 18 stories, along with state and federal mandates targeting embodied carbon in construction. Mass timber can reduce embodied carbon by 20 to 60 percent compared to concrete and steel, making it attractive for developers facing ESG reporting requirements and public procurement rules. Commercial buildings currently lead adoption, but institutional projects like universities are the fastest growing segment. The western U.S. leads regionally, supported by forestry resources and progressive policies. However, the market faces constraints from limited domestic CLT manufacturing capacity and a shortage of specialized labor for timber construction. Insurance and financing complexities also slow project underwriting compared to conventional buildings.
