Warren Buffett’s Berkshire Hathaway makes bold housing market wager: Acquiring Taylor Morrison and becoming America’s 4th largest builder
Want more housing market stories from Lance Lambert’s Resi Club in your inbox? Subscribe to the Resi Club newsletter. Greg Abel—who became president and CEO of Berkshire Hathaway on January 1, 2026, succeeding Warren Buffett, who remains chairman of the board—made one of his first major splashes Sunday: announcing an agreement to acquire America’s No. 6 largest homebuilder Taylor Morrison for $8.5 billion in an all-cash deal. The offer values Taylor Morrison at $72.50 per share, a 24% premium to the company’s closing price of $58.50 on May 29, 2026. The transaction implies an equity value of approximately $6.8 billion and a total enterprise value of roughly $8.5 billion. The deal is expected to close in the second half of 2026, pending shareholder and regulatory approvals, after which Taylor Morrison will be taken private and delisted from the New York Stock Exchange. On Sunday, Berkshire Hathaway signaled that a broader consolidation of its residential construction assets is also in the works. More on that below. Taylor Morrison: The nation’s No. 6 homebuilder Taylor Morrison is no small bet. Currently ranked No. 467 on the Fortune 500, the Scottsdale, Arizona-based builder is America’s sixth-largest homebuilder, with 12,997 new home closings in 2025. The homebuilder 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. It also offers in-house mortgage, title, escrow, and homeowners insurance services. As the map above illustrates, Taylor Morrison’s footprint is concentrated in high-growth population Sun Belt markets. Berkshire already owns America’s No. 12 largest homebuilder This isn’t Berkshire’s first rodeo in homebuilding. The conglomerate already owns Clayton Properties Group—America’s 12th largest homebuilder—which recorded 9,9