Why Tenth Street Group Invests in Building Materials Businesses
At Tenth Street Group, we focus on investing in essential, cash-flowing businesses that sit at the core of the U.S. economy. One area we’re particularly attracted to is building materials.
The reason is simple: the demand is structural, not speculative.
Today, the U.S. faces an estimated 3 million-unit housing shortage. That gap will be filled in only a few ways—through new construction, renovation of aging housing stock, or repurposing existing buildings into residential units. Regardless of which path is taken, all three require one thing: building materials.
Lumber, concrete, aggregates, roofing, insulation, and specialty materials aren’t optional. They’re the inputs that make housing possible. As population growth, household formation, and migration trends continue, demand for these materials remains durable across economic cycles.
For Tenth Street Group, this creates a compelling investment opportunity. Building materials businesses often operate in fragmented markets, have repeat customers, and benefit from steady, non-discretionary demand. When run well, they can generate strong cash flow while providing real value to their local communities.
In short, we invest in building materials because they are foundational to solving America’s housing problem—and because owning essential businesses like these aligns with our long-term, value-oriented investment philosophy.
To learn more about investing with Tenth Street Group, schedule a call with us to join our investor list.
