Berkshire to Buy Taylor Morrison for $6.8 Billion

Berkshire Hathaway has agreed to buy homebuilder Taylor Morrison for $6.8 billion in cash, paying $72.50 per share, a 24% premium to the stock’s May 29 close. The purchase is the first major acquisition by CEO Greg Abel and will be funded from Berkshire’s cash balance of roughly $397 billion.

Citizens analyst James McCanless estimates Berkshire is paying about 0.9 times Taylor Morrison’s tangible book value, which means the purchase price is slightly below the company’s net hard-asset value after liabilities. Taylor Morrison traded at a price-to-earnings ratio of about 8.79 before the deal.

The transaction adds more than 350 communities across 21 markets in 12 states, with a footprint concentrated in growing Sun Belt markets. Combined with Clayton Homes, Berkshire’s manufactured and site-built housing unit, the company would be the fourth-largest U.S. homebuilder by 2025 closings, behind D.R. Horton, Lennar and PulteGroup, according to industry analysis.

Market indicators show weakening demand. U.S. housing starts fell 2.8% in April and single-family starts dropped 9%. The average 30-year mortgage rate recently reached about 6.65%, the highest since August 2025, affecting affordability. Taylor Morrison’s first-quarter closings revenue declined 28% as fewer deliveries and slightly lower prices reduced sales.

Berkshire plans to integrate Taylor Morrison into a broader site-built homebuilding platform over time, moving away from the company’s long-standing practice of keeping subsidiaries largely independent. The company expects to unify its site-built operations.

Bill Stone, chief investment officer at Glenview Trust and a Berkshire shareholder, described the acquisition as ‘betting the housing cycle will turn and that there is pent-up demand.’ Larger builders can achieve scale advantages in land purchases, materials and construction costs and in offering mortgage-rate buydowns.

Wall Street analysts had been positive on Taylor Morrison before the announcement; Wolfe Research had an Outperform rating with a $76 target in April, while Raymond James had an Outperform rating with a $70 target after the builder’s first-quarter results. The transaction is large enough to be meaningful for Berkshire’s cash deployment while remaining within the range of prior company acquisitions.