Berkshire Hathaway Buys Homebuilder Taylor Morrison for $8.5 Billion in First Major Deal Since Warren Buffett’s Exit

Berkshire Hathaway agreed Sunday to buy top national homebuilder Taylor Morrison in an all-cash deal with a total enterprise value of roughly $8.5 billion, signaling a strong vote of confidence in the housing market despite industry challenges.

This marks one of the first major acquisitions made by the Omaha, NE-based conglomerate since Warren Buffett stepped down as CEO earlier this year after nearly six decades at the helm. He was replaced by his handpicked successor, Greg Abel.

The two companies jointly announced that Berkshire Hathaway will pay $72.50 per share in cash to acquire Taylor Morrison, representing a 24% premium to the builder's latest closing price of $58.50 on May 29.

The Arizona-headquartered company's shares jumped 22% in premarket trading Monday.

"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."

Buffett, 95, who now serves as Berkshire Hathaway's chairman, was unstinting in his praise for Abel over the way he carried out the deal.

"Greg did that faster than I could have done it, smoother than I could have done it, and I never talked to the CEO. He has launched," Buffett told CNBC’s Becky Quick.

The acquisition of the America's sixth-largest homebuilder, which has developments in 21 markets across 12 states, is expected to be completed in the second half of 2026. Taylor Morrison will continue to be led by its existing management team, including CEO Sheryl Palmer.

"Joining Berkshire Hathaway is a once-in-a-lifetime opportunity to propel Taylor Morrison into its next, and most exciting chapter, supported by Berkshire's unmatched capital strength and long-term investment philosophy," Palmer said in a statement. "This transaction is a testament to the value of Taylor Morrison's talented team members, trusted brand, community-minded development approach, and diversified portfolio."

This isn't Berkshire Hathaway's first foray into homebuilding: The sprawling conglomerate already owns Clayton Homes, the nation's 12th-largest homebuilder specializing in manufactured homes, which it acquired in 2003 for $1.7 billion.

In August 2025, the holding company further expanded its construction footprint by investing nearly $1 billion in two of the nation’s biggest homebuilders—Lennar and DR Horton.

According to Abel, the long-term plan is "unify" Berkshire Hathaway's site-built homebuilding operations "into a combined platform." The combined operation would make Berkshire the fourth largest homebuilder in the nation, according to housing analyst Lance Lambert.

Berkshire Hathaway, which also owns a constellation of building product companies and Berkshire Hathaway HomeServices, a global residential and commercial real estate brokerage franchise network, is now said to be on track to become the fourth-largest builder in the U.S.

What does this meaning for housing?

Realtor.com® senior economist Joel Berner says Berkshire Hathaway's latest expansion of its portfolio constitutes a vote of confidence in the homebuilding industry in the long term, but not necessarily a bet on the current cooling phase of the business cycle.

"Berkshire Hathaway is stepping into the fold when others feel cautious, which is right up their alley," says Berner. "They have the cash and the insulation from investor demands to wait out this slow period of new home sales."

The conglomerate is leveraging the structural housing shortage in the U.S. with the national supply gap now exceeding 4 million homes.

"Combined with its previous holdings in Clayton Homes, this Taylor Morrison acquisition makes them a top player in addressing that shortage over time," predicts Berner. "They'll be well positioned to deliver offerings at a wide variety of price points and in differing styles of communities when the new home market turns around, which will make them a formidable competitor in the industry."