Jul
2025
While M&A activity declined 46% year over year in the first half of 2025, sellers are expected to test the market in the second half as the operating environment becomes more clear. Long-term fundamentals including persistent housing shortages and resilient nonresidential demand continue to support a favorable outlook for building products deal flow.
Strategic buyers are currently driving activity, while private equity remains selective, focusing on add-ons and preparing for a rebound in platform investments. Long-term demand for building products remains resilient, underpinned by housing shortages, aging inventory, and growing investment in nonresidential segments like data centers.
In our first-half review of building products M&A and sector trends, we unpack the key forces shaping the M&A landscape and building products sector in the second half of the year.
Read the report to:
- Explore the outlook for residential and nonresidential markets, including insights on housing starts, R&R sentiment, and commercial project momentum.
- Understand shifts in M&A dynamics, including a decline in platform investments and the rise of strategic buyers dominating 66% of transactions.
- Track commodity price movements and how tariffs, interest rates, and input costs are affecting material pricing and project viability.