Building Products Industry Update September 2025

This document is an industry update report focusing on the building products sector as of September 2025. It outlines macro trends in both residential and non-residential construction. The report details that U.S. single-family housing starts increased by 8% year-over-year in July, although August figures fell short of expectations. Multifamily starts rose by 15% year-over-year, but overall residential construction activity remains weak, with a potential rebound anticipated due to lower rates and improved affordability. Non-residential construction growth has slowed, with spending still significantly higher than pre-pandemic levels. The report also discusses the rising costs of building materials, which have been influenced by tariffs and market volatility. Key insights include the impact of the One Big Beautiful Bill Act and the Infrastructure Investment and Jobs Act on construction spending, as well as the ongoing challenges and opportunities within the residential and non-residential markets. The document concludes with a focus on the factors driving residential construction moving forward.