For interior uses such as furniture construction, paneling or flooring, lumber must be kiln dried to a moisture content of 6% - 8%. (Moisture content is the ratio between the weight of water in the lumber and the dry weight of the wood.) Modern homes are very airtight and maintain a low humidity during winter months. Air dried lumber will shrink, cup and warp as it adjusts to this environment. You can avoid these problems by using kiln dried lumber. 

Lumber can be purchased kiln dried or you can have your own lumber dried by a custom drying facility. For locations, contact your local DEC Forest Products Utilization and Marketing Forester.  

Kiln dried lumber must be stored in a dry location. If left in an area of high humidity for an extended period of time, the lumber will absorb moisture from the air, effectively losing all the value gained by kiln drying. Unheated cellars and garages should be avoided. 
       
Source: A Consumers' Guide to Buying and using Locally Produced Lumber, New York Department of Environmental        Conservation and Black River - St.Lawrence Resource Conservation and Development Council