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

Berkshire Hathaway It reached an agreement to buy a home builder on Sunday. taylor morrison home The $6.8 billion deal deepens the conglomerate’s bet on the U.S. housing market after a long slump.

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

The deal is one of the first major strategic deals under Greg Abel, who replaced Warren Buffett as CEO in early 2026. The acquisition, expected to close in the second half of 2026, is relatively small by Berkshire’s standards, as Berkshire has nearly $400 billion in cash.

“Berkshire is acquiring a best-in-class national homebuilder led by an outstanding team and backed by a trusted reputation for customer experience,” Abel said in a statement. “Over time, we look forward to integrating our field-build homebuilding operations into a unified platform that will enable us to bring the dream of homeownership to more Americans.”

The deal suggests Berkshire is poised for a recovery in U.S. housing demand despite rising mortgage rates and affordability pressures that have weighed on the sector in recent years.

“They’re betting that the housing cycle will turn around and there will be pent-up demand,” Bill Stone, chief investment officer at Glenview Trust and a Berkshire shareholder, told CNBC.

The acquisition expands Berkshire’s already significant footprint in the residential sector. The conglomerate owns Berkshire Hathaway HomeServices, one of the largest residential real estate brokerage franchise networks in the United States, as well as housing giant Clayton Homes and numerous building products companies.

Berkshire’s last big deal came in October, when it reached a deal to buy Occidental Petroleum’s chemical business, Oxychem, for $9.7 billion in cash.