I have made severaal bird houses, none out of wooden pallets. I use either white pine or eastern red cedar. I paint the pine ones white, to make em last longer, and cover the roofs with metal. Never use treated wood of any kind.
It may be frowned upon but I have built lots of birdhouses, feeders, and squirell feeders as well from pallets. I work at a shipping wharehouse and know for a fact our pallets aren't treated with any chemicals. There are letters burned into the leg blocks of the pallet usually that indicate how they were treated.
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