Building Products M&A and Sector Update: November 2025
Executive Summary
After M&A activity declined 46% year-over-year in the first half of 2025, optimism is returning to the building products sector as sellers re-enter the market and buyers regain confidence. Deal volume has normalized to historical averages, with strategic buyers driving 64% of 2025 transactions (89% including sponsor add-ons) while private equity focuses on add-ons and prepares for a platform rebound in 2026.
Long-term fundamentals remain strong. The U.S. faces a housing shortage estimated at 4 to 7 million units, and 75% of existing housing stock is now more than 20 years old, supporting sustained demand for both new construction and repair and remodel activity. Nonresidential growth is anchored by data centers, where private investment increased 60% in 2024 and spending is projected to reach $48 billion by 2028.
Inside this update:
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Market outlook for residential and nonresidential construction, including housing starts, R&R stabilization, and data center momentum
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Key M&A themes: strategic consolidation driving activity, selective PE deployment amid tariff uncertainty, and early signs of recovery heading into 2026
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Pricing trends across core materials and how tariffs, interest rates, and input cost inflation are shaping deal dynamics and project economics
