There are a number of factors that help determine the price of that solid wood furniture you've had your eye on. Supply and demand, for example. Because the best solid wood furniture is made from hardwood, it grows more slowly, which limits supply and raises the cost. Also, solid wood furniture may be more difficult to manufacture in mass quantities because each part of a solid wood piece must be cut to a specification, whereas it may be easier to create these modular pieces with manufactured wood.