Investment in US timberlands is defying gravity, with stronger returns on forest assets driven by land values – and the growth of the market for alternate use and renewable energy – and not persistantly soft timber and pulp prices. That is according to Domain Timber Advisors, which, in their latest timberland market report, revealed that investment accelerated in the second half of 2025 despite mounting concerns over tariffs, supply chains and a sluggish housing market.
“During 2025, Domain underwrote 14 institutional bid events, 54 public listings, and 38 off-market or non-public offerings,” according to the report, which has been publicly shared on Lesprom. “By the end of the fourth quarter, the acquisition pipeline consists of 46 deals covering more than 500,000 acres, providing visibility into pricing dynamics, regional demand shifts, and emerging non-timber value drivers.”
That includes a big push into alternative land uses and non-timber revenue streams, especially in recreation, renewables, and digital infrastructure. “These projects are typically suitable for about 5% to 10% of a portfolio,” Lesprom reports, “but can deliver returns ranging from five to ten times, and in some cases up to 20 to 25 times, the initial investment.”
And despite multiple large paper and pulp mills ceasing operations in the American South, with curtailments followed by investment in structural lumber and other higher-value engineered wood products, Domain said that increasing returns from non-timber markets and from alternatives like molded fibre ducts and biomass are expected to offset the loss of pulpwood.
It comes after Wood Central on Monday revealed that one of the United States largest forest producers, Weyerhaeuser, reported that its Climate Solutions business, which includes carbon markets, forest carbon projects, renewable energy leases and other natural climate solutions, easily surpassed expectations and is fast becoming one of it’s fastest growing business units. Whilst yesterday, Wood Central revealed that more than 47% of the United States foreign owned agriculture is now into timberlands with overseas owned forests and crops growing exponentially over the last decade.
