One of the most challenging but rewarding woodworking projects you can undertake is to build an outdoor shed. There are many considerations you have to make. A major consideration is the type of wood you use to build it.
The best wood for outdoor sheds can be hardwood, softwood, cheap, expensive, and everything in-between. When you undertake the task of building an outdoor shed, you need to consider many factors. These factors can determine the type of wood you choose. The common factor in whatever wood you choose is that it should be highly durable.
Background

One of the most critical aspects of building a shed is choosing the wood for the exterior walls. The obvious reason for this is that the exterior walls have to hold up to the elements throughout the year.
Although you may feel that a metallic shed could be the solution, it could also be prone to rust. If you choose a non-corrosive material like aluminum or stainless steel, then it would be prone to dents and scratches.
You could build a brick-and-mortar shed. But the skills required to handle those materials are different.
The cost factor is also something you need to consider. Building a shed out of non-corrosive material or concrete can prove to be a costly affair. The most practical material you can use is wood. If you use wood, you can have your shed up in a few days.
An outdoor shed may seem like a simple structure. But there are different components to a shed such as the frame, walls, roof, and flooring. Each part of the shed may call for different materials and specific skills. You can make an all-wood shed or mix different materials for the various parts of the shed.
Which Type of Wood to Use?

Let us assume that we are going to construct a shed entirely of wood. You would need different types of wood for the various components. The three major components are the frame, wall, and roof.
You will need to use framing lumber for the frame. This typically comes in the form of fir or spruce. Walls can be made of a material like oriented strand board (OSB) a form of engineered wood. Plywood is another more durable but also more expensive option.
As we mentioned above, one of the key considerations for wood for an outdoor shed is durability. Treated lumber is a good option, but you may have to compromise on aesthetics with such types of wood.
Types of Wood for Building Outdoor Sheds
If you have decided to proceed with an all-wood shed, here are a few examples of some of the best wood for outdoor sheds:
Framing Lumber

All sheds have frames that hold the roof and walls together. We make such frames from “framing lumber” which also goes by the name “construction-grade lumber.” This lumber comes in spruce or fir and is typically 1 ½“-thick wood.
It usually comes in dimensions of 2X4 which is actually 1 ½“ X 3 ½“ according to standard lumber dimensions. If you have enough 2X4s, you can complete the framing of the walls and roof of your outdoor shed.
Pressure-treated Lumber
Pressure-treated lumber is the same as framing lumber that we mentioned above. The only difference is that we treat the lumber with chemicals to prevent rot. Typically, we use pressure-treated lumber the wood is going to be in direct contact with the soil’
There are different grades of pressure-treated lumber. The commonest type is “mildly treated” pressure lumber. This category of framing lumber will last indefinitely away from the soil but will not last long despite treating it if in constant contact with moist soil.
The most durable category of framing lumber is that which is heavily treated with chemicals so that it can last for years buried in the soil. We use this grade of lumber for foundations, but in fact, you can use it for your entire framing for the best durability.
Oriented Strand Board
When it comes to the sheathing of an outdoor shed, oriented strand board (OSB) is a cost-effective and viable choice. You will often find shed walls made of OSB.
We make OSB from chips of hardwood and softwood, bound together by resins and adhesives and compressed into boards. OSB is not as durable or strong as plywood. So, while you can make shed walls from it, plywood would be a better choice.
Exterior-grade Plywood

As we mentioned above, plywood is a stronger and more durable option than OSB. We make plywood by gluing together thin sheets of wood veneer. The layers are compressed together and cut into workable sheets.
Plywood has multiple uses as shelves, boxes, and several other applications. There are different grades of plywood available on the market. The grade that we usually use for sheds is exterior-grade plywood. It typically comes in half-inch thick boards for the walls but you can use plywood as thin as 5/8” for the flooring of the shed.
Exterior-grade plywood is usually composed of weather-resistant glue. However, this grade of plywood doesn’t have a great resistance to rot. You can increase the durability of the plywood by raising the shed above the ground a bit.
Sheet Wall Siding Panels
Once you have your frame and walls up, you can add panels to enhance the appearance of your shed. You can get panels of different types that are both durable and weatherproof from home improvement stores.
Two types of wood paneling that have gained popularity in recent years are shiplap and tongue & groove paneling. You get this paneling in different types of wood and even in MDF. These panels come in sections that are quick and easy to assemble.
Reclaimed Wood

Reclaimed wood is used wood that is deemed for destruction. It can come from old buildings, condemned barns, damaged fences, and so on. Surprisingly, reclaimed wood has many good qualities, and it can serve as an excellent source of lumber for building an outdoor shed.
Reclaimed wood has many good qualities. If salvaged and processed properly, it can give better results than virgin wood. And, the best part is that no trees are cut as a result of its procurement.
Best Wood for Outdoor Sheds
Here are some of the commonest types of wood that are best suited for making outdoor sheds. Some of the wood is good for framing and other types of wood can make good siding, roofs, and walls.
Cedar

It is a slightly more expensive option. However, we use cedar because even untreated it is a strong and durable type of wood. It has a high resistance to rot and decay, making it a good choice for outdoor purposes.
Cypress

If you use old-growth cypress, you will find it to be an extremely durable type of wood with a high resistance to rot. It takes nails, paint, and all types of finish quite well. This makes old-growth cypress (but not wood from younger trees) a good choice to make outdoor sheds.
Larch

The advantage of larch is that you get a wood that is durable and looks good as well. The best part is that you don’t have to treat it – left on its own, larch weathers well and mellows to a silvery-grey patina. The high resin content contributes to its high resistance to rot and decay.
Douglas Fir

Douglas fir, the tree that we know well as the primary source of Christmas trees makes good lumber for outdoor sheds. It possesses a high degree of dimensional stability which makes it an excellent choice to use as cladding.
Redwood

Redwood is also a great choice for making an outdoor shed. But overharvesting has decimated the population of this stalwart of American lumber. It is not easily combustible, making it suitable as fire-resistant lumber. But you need to ensure that the wood comes from a legal source.
Pine

Practically the cheapest form of lumber for all construction purposes, you can’t go wrong with pinewood. It may not be the most durable wood on the market, but it’s strong and cheap, so offers a cost-effective solution for an outdoor shed.
Plywood

If you choose the correct grade, plywood is a good option to make the walls or siding of an outdoor shed. Exterior-grade plywood is relatively durable and easy to work with. However, it may not have the strength and durability of natural wood.
Conclusion
We hope this discussion on the best wood for outdoor sheds turns out to be a useful source of information for you. As a woodworker, you will get all sorts of requests.
You never know when you might have to build an outdoor shed or some similar structure. With this information, we are sure that you can build a super outdoor shed that will stand up to the travails of nature for several years.
Happy Woodworking!