Feb
2026
Executive Summary
Building products M&A activity showed signs of stabilization in late 2025, with fourth-quarter transaction volume increasing compared to earlier in the year. Although total 2025 deal activity declined approximately 30% year-over-year, strategic buyers remained active, representing 63% of total transactions (89% including sponsor-backed add-ons). Private equity activity continued to focus primarily on add-on acquisitions.
Sector fundamentals remain mixed across residential and nonresidential markets. Single-family construction has steadied amid affordability pressures and rising housing inventory, while multifamily activity reflects the lagged impact of lower starts in prior years. Repair and remodel (R&R) demand continues to benefit from aging housing stock. In nonresidential markets, data center construction remains a notable area of growth, offsetting softness in certain commercial and manufacturing segments.
As the market enters 2026, transaction activity will likely be influenced by macroeconomic conditions, capital availability, input cost trends and buyer confidence.
Inside This Update:
Construction market overview
Trends across single-family, multifamily and nonresidential construction, including housing starts, home sales activity, R&R sentiment and data center momentum.
M&A activity review and buyer landscape
Breakdown of 2025 transaction volume, buyer composition and notable fourth-quarter transactions across building product categories.
Input pricing and cost environment
Recent movements in steel, copper, lumber and other core construction materials and their broader implications for sector performance.