Building Products and Materials Industry Insights – Winter 2021 M&A Advisory

or to bookmark this page

Click here to bookmark this page

Click here to remove bookmark

Building Products and Materials Industry Insights – Winter 2021

Despite economic uncertainty related to the COVID-19 pandemic, 2020 was a record-breaking year for the U.S. housing market. New home sales increased 18.8% in 2020, while existing home sales rose 5.6% due to record low mortgage rates, favorable demographics and a shift in demand to suburban and rural markets.

Building Products and Materials Industry Insights – Winter 2021

Building permits and housing starts posted gains of 4.8% and 7.0%, respectively. In December 2020, new applications for building permits were up 17.3% from the prior year and 4.5% from the prior month, to levels not achieved since 2006.

Single-family starts drove the increase, rising 11.7% from 2019 to 2020, while multifamily starts were down 9.3% year over year.

Remodeling activity remains strong due to the upward trajectory of home sales, home equity and time spent at home. Spending for improvements and repairs to owner-occupied homes increased 3.5% in 2020 and will likely grow 3.8% in 2021.

Strong demand and low inventory levels drove home prices higher in 2020, with all cities reporting data in the 20-City Index notching gains on a year-over-year basis.

The Canadian housing market saw similar gains as the U.S., driven by low mortgage rates and a shift into larger homes to ride out the COVID-19 pandemic.

Finally, the performance of stock market indexes for homebuilders, building products manufacturers and building products distributors outperformed the S&P 500 over the past 12 months, reflecting investor confidence in the near-term future of the industry.

Building Products and Materials Industry Insights – Winter 2021 2021-02-12T00:00:00.0000000 /insights/publications/m-and-a/building-products-and-materials-industry-insights-winter-2021 /-/media/assets/images/publications/featured-images/2021/building-products-and-materials-insights-winter-2021.jpg publication {D59CA77E-C551-45A3-BE89-F567210C5A60} {6D429BE3-2AAB-4D83-AD34-8DB8DAB79D3E} {9B44E83A-E993-4902-AAE0-82849CEAD728} {D3AE3EC6-3254-4441-B111-1AF8D558906C} {6B6F3B01-98A6-4BC2-B2CD-CBD127447FB5} {5CE144D0-ADDC-43A3-95E4-3428CA819BF8} {13E28841-C245-441D-8C3B-49E72DA5381C} {49ED5FA4-1B37-4C7A-8D38-6861240EC2CC}

Other Areas We Can Help

Corporate Finance

Corporate Finance

Comprehensive support throughout mergers and acquisitions and other corporate transactions.

Corporate Finance

Transaction Advisory Services

Seamless analytical advisory through the deal continuum, from transaction origination to closing.

Transaction Advisory Services

Financial Sponsors Group

Dedicated coverage and access to M&A deal-flow for financial sponsors.

Financial Sponsors Group
Comprehensive Due Diligence Solution

Comprehensive Due Diligence Solution

Comprehensive diligence support primarily in the areas of tax, compliance and regulatory, operations, financial and accounting, investigations and disputes and cyber/IT risk.

Comprehensive Due Diligence Solution

Insights

M&A Advisory

Healthcare Services Sector Update – January 2021

M&A Advisory
M&A Advisory

Apparel Quarterly Update – Winter 2021

M&A Advisory
M&A Advisory

Restaurant Quarterly Update – Winter 2021

M&A Advisory
Compliance

Assessing the Value of Compliance Due Diligence in M&A—Insight Into the Challenges and Benefits

Compliance