Industrials Market Outlook in 2024: Optimism for the U.S. Residential Housing Building Products Market
While tempered housing demand in 2023 had slowed down related building products M&A activity, BGL’s Building Products investment banking team believes conditions will improve in line with the strengthening housing market. Our long-term bullish view on the building products market is driven by:
- An unprecedented deficit of affordable housing that will need to be filled in part by accelerating the pace of new home builds.
- Easing inflation and the cessation of interest rate hikes putting downward pressure on mortgage rates.
- Moderation of home price growth improving the affordability for many first-time home buyers.
- Improved inventory levels as sellers return to the market.
- Millennials, the largest generation in history, entering their prime home buying years.
- Builders continuing to offer smaller and more affordable housing solutions.
Transactions such as MITER Brands’ announcement in January 2024 of its $3.1 billion acquisition of PGT Innovations (pending) and ASSA ABLOY’s $4.3 billion purchase of the Hardware and Home Improvement Business from Spectrum Brands in June 2023 underscore strong investor conviction about the long-term prospects for both the residential new construction and R&R markets.
To read the rest of our 20-page building products industry report, you can download our full Insider here:
Led by Andrew K. Petryk, our Building Products investment banking team has worked in a variety of niches across the industry, including basic building materials, architectural building materials and mechanical systems and components. Please reach out via our contact form below to learn more.