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Warren Buffett’s Berkshire pours $8.5B on US homebuilder — a big bold bet on America’s housing comeback
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The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational. Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. Warren Buffett’s Berkshire Hathaway (NYSE:BRK.B) is making a big bet on a housing comeback. The conglomerate has agreed to acquire (1) homebuilder Taylor Morrison Home Corporation (NYSE:TMHC) in an all-cash deal valued at $8.5 billion, including debt, marking one of Berkshire’s first major moves under new CEO Greg Abel. Here’s how to get rich from rising US property values with as little as $100 — and without the stress of angry tenants Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s how to fix it ASAP The IRS usually taxes gold as a collectible — but this little-known strategy lets you hold physical bullion tax-free. Get your free guide from Priority Gold And Buffett appears impressed. “Greg did that faster than I could have done it, smoother than I could have done it, and I never talked to the CEO,” Buffett told (2) CNBC’s Becky Quick. “He has launched.” That is a powerful endorsement from the Oracle of Omaha — and a clear signal that Berkshire is not backing away from big deals in the post-Buffett era. If anything, Buffett seems confident that Abel may take the company to new heights. Under the agreement, Berkshire will pay $72.50 per share in cash for Taylor Morrison, valuing homebuilder’s equity at about $6.8 billion and represents a 24% premium to its May 29 closing price of $58.50. Investors noticed. Taylor Morrison shares surged more than 22% after the deal was announced. The timing is what makes the move so interesting. The housing market has been under heavy pressure. Mortgage rates remain elevated. Affordability is stretched. Many would-be buyers have been priced out. Existing homeowners with low mortgage rates have been reluctant to sell, choking off supply. And homebuilders have had to navigate a difficult mix of higher costs, cautious buyers and economic uncertainty. But Berkshire is not known for chasing hot trends. It is known for buying durable businesses when the long-term math looks attractive. And housing is one of the most essential industries in America. No matter what happens in the economy, people still need a place to live. For Berkshire, Taylor Morrison adds to an already sizable housing footprint. Berkshire owns Clayton Homes, a major manufactured housing company. It owns housing-related businesses such as Benjamin Moore paint, Johns Manville insulation and Acme Brick. The company also has exposure to real estate brokerage through Berkshire Hathaway HomeServices. In other words, this is not Berkshire suddenly discovering housing. It is doubling down. In the deal announcement, Abel said that Berkshire expects to unify its site-built homebuilding operations over time into a combined platform “enabling us to deliver the dream of homeownership to more Americans.” But that American dream has become increasingly difficult for many families to reach. Home prices have trended higher for decades. In just the last 10 years, the S&P Cotality Case-Shiller U.S. National Home Price NSA Index has jumped 88% (3), reflecting strong demand, limited supply and years of underbuilding. Former Federal Reserve Chair Jerome Powell has pointed to the root cause: America simply does not have enough homes. “The real issue with housing is that we have had and are on track to continue to have, not enough housing,” he said (4). According to Realtor.com, the housing supply gap in America has now exceeded four million homes (5). That helps explain why Berkshire may be willing to look past today’s pain and towards tomorrow’s gains. The company is not buying Taylor Morrison for next quarter. It is buying into the idea that, come what may, Americans will still need homes. That leaves regular investors with an obvious question: if Taylor Morrison is being taken private, how can they still ride a potential housing rebound? Here are three ways to get in the game. Read More: Here’s the average income of Americans by age in 2026. Are you falling behind? If America remains short on homes, rental housing could stay in demand. That is one reason rental real estate has long been a popular way to build wealth. When you own a rental property, and tenants pay rent, you can generate a steady stream of monthly income. Rental properties can also serve as a hedge against inflation. Over time, property values and rents often rise alongside the cost of living, helping owners preserve purchasing power. Of course, being a landlord is not always passive. Properties require maintenance. Tenants can move out. Repairs can be expensive. And that’s if you can save enough for a down payment and qualify for a mortgage in the first place. The good news? You don’t need to buy a property outright — or deal with leaky faucets — to invest in real estate today. Mogul is a crowdfunding platform that offers an easier way to get exposure to this income-generating asset class. As a real estate investment option offering fractional ownership in blue-chip rental properties, it gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 a.m. tenant calls. Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide for you. In other words, you gain access to institutional-quality offerings for a fraction of the usual cost. Each property undergoes a rigorous vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property. Sign up for an account and browse available properties here to start investing today. The housing shortage does not only affect single-family homes. When home prices remain elevated, and mortgage rates keep monthly payments high, many Americans stay in the rental market longer. That can support demand for multifamily properties — including apartment communities that house dozens, hundreds or even thousands of residents under one roof. For investors, multifamily real estate can offer exposure to a large and essential corner of the housing market without relying on one house or one tenant. In a report prepared by JPMorgan (6), Al Brooks — the firm’s vice chair of Commercial Banking — said, “I think multifamily housing is absolutely where you want to be as an investor.” Accredited investors can now tap into this opportunity through platforms such as Lightstone DIRECT, which gives accredited investors access to single-asset multifamily and industrial deals. Lightstone DIRECT’s direct-to-investor model ensures a high degree of alignment between individual investors and a vertically-integrated, institutional owner-operator — a sophisticated and streamlined option for individual investors looking to diversify into private-market real estate. With Lightstone DIRECT, accredited individuals can access the same multifamily and industrial assets Lightstone pursues with its own capital, with minimum investments starting at $100,000. At the end of the day, it’s not just giants like Berkshire that can capitalize on America’s housing market. The barrier to real estate investing has never been lower. A key reason: crowdfunding. Crowdfunding platforms like Arrived have made it easier for everyday investors to gain exposure to America’s real estate market without buying an entire property themselves. Backed by world-class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100 — all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants. The process is simple: Browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase and then sit back as you start receiving any positive rental income distributions from your investment. For a limited time, when you open an account and add $1,000 or more, Arrived will credit your account with a 1% match. 10 minutes could get you up to $2M in life insurance coverage with no medical exams. Check your rate and secure instant coverage from your couch with Ethos Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how Vanguard’s outlook on U.S. stocks is raising alarm bells for retirees. Here’s why and how to protect yourself Robert Kiyosaki says this 1 asset will surge 400% in a year and begs investors not to miss this ‘explosion’ Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now. We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines. Taylor Morrison (1); CNBC (2); S&P Global (3); U.S. Federal Reserve (4); Realtor.com (5); JPMorgan Chase (6) This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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