Berkshire Hathaway makes $6.8 billion housing bet with Taylor Morrison deal

Berkshire Hathaway Agreed to buy home builder on Sunday Taylor Morrison Home Page With a $6.8 billion deal, the conglomerate’s investment in the US housing market deepened after a long decline.

The Omaha, Nebraska-based company will pay Taylor Morrison $72.50 per share in cash. a statement. The offer represents a 24% premium to the builder’s closing price on May 29 and values ​​the company at about $8.5 billion, including debt.

The acquisition is one of the first major strategic deals under Warren Buffett’s successor, Greg Abel, who takes over as CEO in early 2026. The acquisition, expected to be completed in the second half of 2026, is relatively modest by Berkshire standards, as it sits on a cash pile of close to $400 billion.

“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 hope to consolidate our site-built homebuilding operations onto a unified platform, enabling us to deliver the dream of homeownership to more Americans.”

The deal shows Berkshire is positioning for a rebound in U.S. housing demand despite high mortgage rates and affordability pressures that have weighed on the industry in recent years.

“They’re betting that the housing cycle will change and there’s pent-up demand,” Glenview Trust CIO and Berkshire shareholder Bill Stone told CNBC.

This acquisition expands Berkshire’s already sizeable footprint in the residential space. The conglomerate owns homebuilding giant Clayton Homes, a line of building product companies, as well as Berkshire Hathaway HomeServices, one of the largest residential real estate brokerage franchise networks in the United States.

Berkshire’s last major deal came in October, when it reached a $9.7 billion cash deal to acquire Occidental Petroleum’s chemicals business OxyChem.