On July 24, Berkshire Hathaway completed its acquisition of homebuilder Taylor Morrison, paying $72.50 per share in cash.
The total equity value of the deal reached $6.8 billion, climbing to $8.5 billion when including debt.
This price reflected a 24% premium over Taylor Morrison’s closing stock price on May 29, indicating strong confidence in the homebuilder's value.
Sheryl Palmer, the current CEO of Taylor Morrison, will continue leading the combined homebuilding operations, guiding the integration of brands like Esplanade and Yardly into Berkshire’s portfolio.
Taylor Morrison will merge with Berkshire’s Clayton Properties Group, which consists of 15 regional and local homebuilders.
Together, these combined businesses closed nearly 23,000 homes in 2025, operating across 21 states, 52 housing markets, and over 700 communities. This positions the new entity as the fourth largest homebuilder in the U.S.
Berkshire’s presence in housing is already extensive, owning Clayton Homes and Berkshire Hathaway HomeServices, a major residential real estate brokerage, as well as various building product firms.
The acquisition stands out as the first major move by Berkshire’s new CEO, Greg Abel, who took over from Warren Buffett earlier in 2026. Analysts note that with nearly $400 billion in cash reserves, the $6.8 billion deal is relatively modest in scale.
Before the acquisition, Taylor Morrison showed solid financial health with a GF Score of 85 out of 100, a strong profitability rank, and an Altman Z-Score of 3.86, signaling low bankruptcy risk.
The homebuilder posted $7.61 billion in revenue and had a price-to-earnings ratio near 10.8, highlighting its stable market standing.
Berkshire Hathaway has recently completed other large investments, including a $10 billion stake in Google, underscoring a strategic push under Greg Abel’s leadership.
