Berkshire Hathaway is going forward with an $8.5 billion deal for Taylor Morrison. Omaha, Nebraska, May 31, 2026, 17:01 CDT
Berkshire Hathaway is picking up Taylor Morrison Home for about $8.5 billion in cash, stepping up its push into U.S. homebuilding with a heavier bet on site-built homes. The offer comes at $72.50 per share, 24% over Taylor Morrison’s Friday close of $58.50.
Berkshire Hathaway’s new chief Greg Abel is getting an early test. The announced deal comes just as Abel takes over as CEO, and it’s a big move in a business where Berkshire already has some scale through Clayton Homes and building-products units. Warren Buffett left the CEO job at the beginning of 2026 but stays on as chairman.
Housing is still under pressure. New U.S. single-family home sales fell 6.2% in April, with mortgage rates holding high and the supply of new homes up. Builders are relying more on price cuts and incentives to move inventory.
Berkshire Hathaway’s deal puts Taylor Morrison’s equity at roughly $6.8 billion, with an enterprise value near $8.5 billion, the companies said. Once the deal closes, Taylor Morrison will go private and its stock will leave the New York Stock Exchange.
Abel said Berkshire plans to roll its site-built homebuilding businesses—meaning homes built mostly on the buyer’s lot—into a larger platform. The move lines up with Berkshire’s push into housing through Clayton Homes and its other building-products units.
Taylor Morrison brings size. The homebuilder, based in Scottsdale, Arizona, runs over 350 communities in 21 markets across 12 states. It targets entry-level, move-up, and resort-lifestyle buyers, and also provides mortgage, title, escrow, and homeowners’ insurance.
The deal hands Berkshire a larger stake in a sector where major homebuilders like D.R. Horton, Lennar, and PulteGroup have used mortgage-rate buydowns—subsidies to cut buyers’ loan rates for a time—to keep sales steady. Reuters said in April that builders have been under strain from higher rates, tariffs, and rising building costs.
D.R. Horton, the top homebuilder in the U.S., said in April that new-home demand is still being held back by affordability issues and wary buyers. Executive chairman David Auld said the company will keep sales incentives high into fiscal 2026.
Taylor Morrison Chairman and CEO Sheryl Palmer said Berkshire’s long-term outlook matches the “multi-year investment cycle of homebuilding.” Palmer said joining with Berkshire would allow new scale the company couldn’t get as an independent public firm. Reuters
The deal still needs the green light from Taylor Morrison shareholders and regulators. Both companies said litigation, market swings, rising costs or any hiccup on closing conditions could hold up or even stop the transaction. There’s also a risk from mortgage rates and soft demand if the housing market weakens more.
Taylor Morrison posted first-quarter net income of $99 million and adjusted net income of $109 million in April. The company closed 2,268 homes at an average price of $578,000. Taylor Morrison reported a backlog of 3,465 homes valued at $2.3 billion and finished the quarter with liquidity of about $1.6 billion.
The companies see the deal closing in the second half of 2026. Taylor Morrison has Goldman Sachs and Moelis as advisers. Simpson Thacher & Bartlett is handling legal, and Mayer Brown is acting as financial-services regulatory counsel.
