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Berkshire Hathaway plans to acquire Taylor Morrison in an $8.5 billion deal that adds significant investment to the housing sector, as some construction economists point to early signs that activity may extend beyond data center-related projects.
The all-cash transaction, announced May 31, values the Scottsdale, Arizona-based homebuilder and developer at $72.50 per share, or about $6.8 billion in equity value and $8.5 billion in enterprise value. The price represents a 24% premium to the closing price of the company’s shares on May 29.
Taylor Morrison operates more than 350 home communities in 21 markets across 12 states and serves entry-level, move-up and resort lifestyle buyers while developing rental communities through its Yardly brand.
ENR reached out to Taylor Morrison for additional comment, but did not immediately receive a response.
Berkshire already owns Clayton Homes, a major manufacturer of manufactured homes, along with several building products companies. Greg Abel, CEO of Berkshire Hathaway, said the acquisition reflects the company’s existing commitment to housing.
“We are excited to welcome Taylor Morrison to the Berkshire portfolio,” Abel said in the announcement. He added that Berkshire hopes to eventually “unify our built home construction operations into a combined platform” along with Clayton Homes and its other housing-related businesses.
Dodge Construction Network reported that nonresidential building starts rose 18.6% in April from the previous month, while housing starts declined 0.7%. Year-to-date, Dodge said residential starts fell 4.5 percent, while nonresidential starts rose 9.1 percent and nonbuilding starts rose 12.3 percent.
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Kenneth Simonson, chief economist for the Associated General Contractors of America, said recent data suggests construction demand may be picking up.
“I think early signs show that construction activity is starting to extend beyond data center related projects,” Simonson said in an email to ENR. “But there are a lot of headwinds in terms of higher costs and interest rates and sluggish consumer demand.”
The U.S. Census Bureau reported that privately owned housing starts in April had a seasonally adjusted annual rate of 1.465 million units, down 2.8% from March but up 4.6% from April 2025. Single-family home starts fell 9% from March, while the rate of units in buildings with five or more units reached 529.
Simonson pointed to the multifamily numbers as a sign of improvement after a long decline, citing April multifamily starts up 23% year over year and multifamily permits up 5.3% year over year.
The National Association of Home Builders/Wells Fargo housing market index rose three points in May to 37, although readings below 50 indicate more builders view conditions as poor than good. NAHB said recent increases in long-term interest rates will continue to dampen buyer demand and the market continues to face significant affordability challenges.
In a research note cited by Reuters, UBS analyst John Lovallo said the combination of Taylor Morrison and Clayton Homes would create one of the top five U.S. homebuilders and called the acquisition “a strong vote of confidence in the medium-to-long term outlook for the homebuilding industry,” citing a housing shortage of about 7 million homes. Reuters also reported that RBC Capital Markets analyst Mike Dahl said the purchase “adds more fuel to the consolidation fire.”
Reuters noted that other homebuilders have also received takeover bids this year, adding context to the consolidation trend.
Taylor Morrison Chairman and CEO Sheryl Palmer said Berkshire’s investment approach fits the homebuilding business cycle “Berkshire Hathaway’s long-term focus is perfectly aligned with the multi-year investment cycle of homebuilding,” she said in the announcement.
