Projections for Building Materials M&A Activity in 2026

Building products M&A is poised for continued growth in 2026, building on investor optimism in the long-term fundamentals of the U.S. housing market.

That's according to an industry report released by the Building Products investment banking team at Brown Gibbons Lang & Company (BGL).

Despite tariff concerns and economic uncertainty, the building products M&A market showed resilience in 2025. That claim is backed by BGL's data that shows a 30% increase in deal volume (compared to 2024 figures), including several marquee strategic transactions. BGL says 211 building materials deals were completed in 2025.

Looking ahead at this year and beyond in the broader homebuilding landscape, BGL remains bullish, thanks to an aging housing stock and "an unprecedented deficit of affordable housing that will need to be filled." That "affordable" word remains key for all players involved, however.

"To see M&A volumes continue to increase, broader affordability needs to improve in the housing market," said Andrew Petryk, Senior Managing Director and Head of BGL's Industrials vertical. "We are closely monitoring the impact of recent bipartisan efforts and initiatives aimed at increasing housing supply and lowering borrowing costs, as these measures are crucial for unlocking pent-up demand and working towards a meaningful and sustainable recovery." 

Inside the report, BGL examines the state of the housing market and the forces that are driving the outlook for deal activity in the building products sector. According to BGL, robust liquidity, a strengthening housing outlook, and pent-up demand from buyers and sellers are the necessary drivers to produce another growth year in 2026 for building products M&A. 

Get BGL's full report here.