Berkshire Hathaway announced on June 1 that it will acquire Taylor Morrison Home Corp in an all-cash deal valued at about $6.8 billion [1, 2]. The acquisition price is $72.50 per share, representing a 24% premium to Taylor Morrison’s recent closing stock price [1, 2].
Taylor Morrison is among the largest community developers and homebuilders in the US, operating more than 350 communities across 12 states [1]. The existing management team, including CEO Sheryl Palmer, will remain in place following the acquisition [1].
The deal marks the first major acquisition by Berkshire Hathaway under its new CEO Greg Abel, who took over from Warren Buffett in early 2026 [1, 2]. Abel said, "Berkshire is acquiring a best-in-class national homebuilder, led by an exceptional team and backed by a trusted reputation for customer experience. 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" [2].
Berkshire already owns Clayton Homes and holds shares in Lennar Corp as part of its growing footprint in the housing sector [1, 2]. At the end of the first quarter of 2026, Berkshire reported $397 billion to $400 billion in cash reserves, giving it substantial firepower for acquisitions [1, 2].
The $6.8 billion deal reflects a bet on a potential US housing market recovery despite recent challenges like high mortgage rates. Bill Stone, Glenview Trust CIO, said investors are "betting the housing cycle will turn and that there is pent-up demand" [2].
Sources differ on the total valuation including debt, with one estimating about $6.8 billion and another around $8.5 billion [1, 2].
The acquisition is expected to close in the second half of 2026 [2].
