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May 2026

Building Products M&A and Sector Update: May 2026

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Executive Summary

Building products M&A activity continued to rebound in the first quarter of 2026, reaching 100 announced transactions and marking a second consecutive quarter of improving deal volume. Improving financing conditions and stabilizing market sentiment have supported renewed activity following a softer 2025.

Construction fundamentals remain mixed across residential and nonresidential markets. Single-family activity continues to face affordability pressures and elevated mortgage rates, while multifamily construction works through excess supply from prior years. At the same time, data center development, infrastructure investment and electrification trends continue to support demand across electrical, HVAC and power-related building product categories.

Inside This Update:

Construction market overview
Insights into single-family, multifamily and nonresidential construction trends, including housing starts, home sales activity, remodeling sentiment and infrastructure-driven demand.

M&A activity review and market trends
Analysis of first-quarter 2026 transaction activity, notable acquisitions and broader themes shaping consolidation across building product sectors.

Input pricing and commodity trends
Updates on pricing movements across steel, copper, lumber and other key construction materials, along with implications for manufacturers, distributors and construction activity.