The objective of this study is to investigate the effect of the moisture content of lumber at the fabrication on the racking resistance of shear walls and the change of the resistance due to the time lapse with the drying of lumber. A summary of the results of the racking tests is as follows: The stiffness and the ultimate strength of plywood sheathed walls just after the fabrication increase as the moisture content of lumber used decreases. The stiffness decreases with the time lapse regardless of the moisture content of the lumber used, while the ultimate strength of the wall used green lumber increases due to the time lapse with the drying of the lumber.