In a deal that deepens its bet on the U.S. housing market after a long downturn, Berkshire Hathaway has agreed to acquire homebuilder Taylor Morrison Home for $6.8 billion.
The Omaha, Nebraska-based Berkshire will pay $72.50 per share in cash for Taylor Morrison, representing a 24% premium to the homebuilder’s closing price on May 29 and values the company at about $8.5 billion, including debt, CNBC reported. It marks one of the first major strategic deals under 95-year-old Warren Buffett’s successor, Greg Abel, who took over as CEO at the start of 2026.
The acquisition, which is expected to close in the second half of this year, is relatively modest by Berkshire standards as it’s sitting on a cash hoard nearing $400 billion, CNBC reported.
“Berkshire is acquiring a best-in-class national homebuilder, led by an exceptional team and backed by a trusted reputation for customer experience,” Abel said in the statement. “Over time, we expect to unify our site-built homebuilding operations into a combined platform enabling us to deliver the dream of homeownership to more Americans.”
The deal suggests Berkshire could be positioning for a recovery in U.S. housing demand despite elevated mortgage rates and affordability pressures that have weighed on the sector in recent years, CNBC noted.
“They are betting the housing cycle will turn and that there is pent-up demand,” said Bill Stone, Chief Investment Officer at Glenview Trust and a Berkshire shareholder.
Already Has a Sizable Footprint in Housing
CNBC said the acquisition widens Berkshire Hathaway’s already sizable footprint in housing.
It owns the manufactured home giant Clayton Homes, numerous building product companies, and Berkshire Hathaway HomeServices, one of the largest residential real estate brokerage franchise networks in the nation.
Currently ranked No. 467 on the Fortune 500, the Scottsdale, Arizona-based company is America’s sixth-largest homebuilder, with 12,997 new home closings in 2025, according to Fast Company.
Taylor Morrison operates more than 350 communities across 21 markets in 12 states, serving entry-level, move-up, and resort-lifestyle buyers under the Taylor Morrison and Esplanade brands, and developing build-to-rent (BTR) communities under the Yardly brand.
The company also offers in-house mortgage, title, escrow, and homeowners insurance services.
CNBC noted that Taylor Morrison put out an aggressive, multiyear growth plan about 15 months ago.
“We’ve certainly seen some shifts in the market, so the targets we put out, we stand behind. The timing certainly might have been at risk,” said Sheryl Palmer, CEO of Taylor Morrison, in an interview with CNBC’s “Squawk on the Street” on Monday. “I think one of the things we’re so excited about is homebuilding runs in five-, seven-, 10-year cycles. Berkshire thinks in probably seven-, 10-[year] and longer cycles. That alignment is very rare.”
CNBC noted that it’s that longer-term view that most analysts say is why the time is right for a deal.
Longer-Term View
“What it says is that very sophisticated buyers think the valuations have bottomed,” said Margaret Whelan, founder and CEO of Whelan Advisory, which specializes in homebuilder M&A. “I assume sophisticated buyers would wait and buy later or pay less if they thought the market was still going down.”
Fast Company noted Berkshire already owns America’s No. 12th-largest homebuilder, Clayton Properties Group, which recorded 9,953 new builds in 2025.
Clayton Properties is a fundamentally different animal than Taylor Morrison, Fast Company noted. While Taylor Morrison is a traditional site-built homebuilder, Clayton Properties skews toward scattered-site manufactured and modular housing. Clayton Homes was bought by Berkshire in 2003 for $1.7 billion.
Combined, Berkshire’s housing platform becomes formidable, Fast Company said.
With Taylor Morrison’s 12,997 closings and Clayton Properties’ 9,953 closings, combined, that’s roughly 22,950 closings in 2025—which, by ResiClub‘s back-of-the-envelope analysis, would make Berkshire Hathaway the fourth-largest homebuilder in the United States, trailing only D.R. Horton, Lennar, and PulteGroup.
