Berkshire Grows Homebuilding Business With Taylor Morrison Deal

Berkshire Hathaway has expanded its U.S. homebuilding business through two acquisitions and a larger Lennar position, while CEO Greg Abel has said the housing market will take time to recover.

Berkshire completed its all-cash purchase of Taylor Morrison on July 24 at $72.50 a share. Taylor Morrison’s equity was valued at about $6.8 billion, and the transaction’s total enterprise value was about $8.5 billion. The builder joined Berkshire’s site-built homebuilding operations, which include Clayton Properties Group, a collection of 15 regional and local builders. At the close, Abel said, “Together, we will help more Americans achieve their dream of homeownership.”

Together, Taylor Morrison and Clayton had nearly 23,000 site-built home closings in 2025. Their operations spanned 21 states and 52 housing markets and reached more than 700 communities.

Mungo Homes, another part of Berkshire’s homebuilding group, brought McGuinn Homes into its operation earlier this summer. The move extended Mungo’s reach into Augusta, Georgia, and Aiken, South Carolina.

Berkshire’s Lennar position also grew. It held 13,111,741 Class A shares on June 30; by Sept. 30, that figure had climbed to 26,034,436, or 12.5% of Lennar’s Class A shares. That was just shy of twice the June position. Purchases through Oct. 2 brought Berkshire’s holdings to 28,438,045 Class A shares and 568,028 Class B shares. The 12.5% figure applies to Class A alone.

Lennar’s third-quarter net earnings were $284 million, compared with $591 million for the same period a year earlier. The quarter ended Aug. 31. Its homebuilding division’s gross margin narrowed to 15.8%, versus 17.5% in the year-earlier quarter.

On Sept. 2, Abel said of the housing market, “We don’t envision a quick recovery there.” The latest available weekly average for a 30-year fixed-rate mortgage was 7.40% as of Oct. 8. A new weekly mortgage-rate reading was scheduled for noon ET (16:00 UTC) Thursday, Oct. 15.