Capstone Expands Carolina Stone Into High-Growth Southeast Homebuilding Corridor Amid Rising Builder Demand
Capstone Holding Corp, a tech-enabled building products distribution platform, has announced the expansion of its Carolina Stone subsidiary into the Wilmington–Myrtle Beach coastal corridor, responding to accelerating demand from homebuilders operating across the rapidly growing Southeast housing market.
The move comes as construction activity continues to increase across the coastal Carolinas, creating immediate demand for expanded inventory capacity and installation services. By extending its footprint into this region, Capstone is positioning Carolina Stone within one of the most active residential development corridors in the United States, where more than 230 new-home communities are currently under construction or in planning stages.
The expansion follows a period of strong commercial momentum for Carolina Stone, including a notable increase in its partnership with national homebuilder D.R. Horton, which now spans 19 communities. This growth has contributed to Capstone reporting its strongest order volume in two years, underscoring the rising demand for its building products and installation services.
Strategic Expansion Driven by Builder Demand
According to Capstone, the decision to enter the Wilmington–Myrtle Beach corridor was directly driven by demand from existing builder partners who are scaling their operations across the coastal Carolinas. The region has emerged as a key growth hub for residential development, supported by population inflows, affordability relative to other coastal markets, and sustained housing demand.
“Myrtle Beach is the second-fastest-growing metropolitan area in the country, and expanding into this market is a key milestone for Carolina Stone,” said Matthew Lipman, Chief Executive Officer of Capstone Holding Corp. “This expansion is a direct response to demand from our builder partners, who are seeking greater access to our products and installation services as they grow across the coastal Carolinas. It is another sign of accelerating order volume and organic growth at Capstone.”
The new operational footprint is expected to strengthen Carolina Stone’s ability to serve builders with integrated solutions, including the supply and installation of architectural stone products, a category increasingly in demand within premium residential developments.
Positioning in a Rapidly Growing Housing Corridor
The Wilmington–Myrtle Beach corridor has become one of the most dynamic homebuilding regions in the Southeast, with sustained demand driven by both population growth and ongoing residential development activity. Capstone noted that more than 230 new-home communities are currently under development in the region, making it one of the most active construction markets in the Southeast.
By entering this corridor, Carolina Stone gains direct access to a dense pipeline of residential projects, allowing the company to scale its services alongside its builder customers. This proximity is expected to improve service efficiency, strengthen customer relationships, and enhance delivery timelines for ongoing construction projects.
Momentum Supported by Key Commercial Wins
Capstone’s expansion is also supported by recent commercial achievements across its Carolina Stone business. The extension of its partnership with D.R. Horton to 19 communities represents a significant milestone, reflecting deepening relationships with major national homebuilders.
These wins have contributed to Capstone’s strongest order volume in two years, highlighting a sustained recovery and acceleration in demand across its platform. The company views this momentum as a key indicator of future revenue growth and continued market penetration in high-growth housing regions.
Enhancing Margin and Revenue Growth Potential
The Wilmington–Myrtle Beach expansion is expected to strengthen Carolina Stone’s higher-margin product and service offerings, particularly in architectural stone supply and installation. By expanding geographically into a high-demand corridor, Capstone aims to increase utilization of its integrated distribution model while supporting gross profit growth.
The company expects the new operation to open between August and September 2026. Once operational, it is positioned to begin contributing revenue in the second half of 2026, aligning with active construction timelines across builder projects in the region.
Capstone also anticipates that the expansion will provide improved visibility into its long-term project pipeline, as closer proximity to builders enables stronger coordination and more predictable demand planning.
Supporting Long-Term Organic Growth
Capstone emphasized that the expansion into the coastal Carolinas is part of its broader strategy to drive organic growth through customer-driven demand and geographic expansion in high-growth housing markets. The company’s tech-enabled distribution platform is designed to support scalable growth by integrating inventory management, logistics, and installation services across key construction markets.
“We look forward to sharing additional positive developments with our shareholders as the benefits of our margin expansion and organic growth initiatives continue to materialize in the quarters ahead,” Lipman added. “It is an exciting time for Capstone.”
The Southeast continues to be one of the strongest regions for residential construction in the United States, driven by population migration, relatively affordable land, and strong builder activity. Markets such as Myrtle Beach and Wilmington are benefiting from both primary housing demand and second-home development, further supporting sustained construction pipelines.
Capstone’s entry into this corridor aligns with broader industry trends, as building product distributors and construction service providers increasingly follow homebuilders into high-growth regional markets. By establishing a presence in one of the most active development corridors, Capstone aims to position itself for continued expansion alongside its builder partners.
With this strategic move, Capstone strengthens its presence in a key growth region while reinforcing its role as a critical supplier within the residential construction ecosystem across the Southeast.
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