Taylor Morrison operates more than 350 housing communities across 21 markets in 12 states and serves entry-level, move-up and resort-lifestyle buyers, while also developing rental communities through its Yardly brand. 

ENR sought additional comment from Taylor Morrison but did not immediately receive a response.

Berkshire already owns Clayton Homes, a major manufactured homebuilder, along with several building-products businesses. Greg Abel, Berkshire Hathaway CEO, said the acquisition reflects the company's existing commitment to housing.

"We are excited to welcome Taylor Morrison into Berkshire's portfolio," Abel said in the announcement. He added that Berkshire expects over time to "unify our site-built homebuilding operations into a combined platform" alongside Clayton Homes and its other housing-related businesses.

Dodge Construction Network reported that nonresidential building starts increased 18.6% in April from the previous month while residential starts declined 0.7%. On a year-to-date basis, Dodge said residential starts were down 4.5%, while nonresidential starts were up 9.1% and nonbuilding starts were up 12.3%.

Kenneth Simonson, chief economist for the Associated General Contractors of America, said recent data suggest construction demand may be widening.

"I believe early indications show construction activity is beginning to spread beyond data center-related projects," Simonson said in an email to ENR. "But there are plenty 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 ran at a seasonally adjusted annual rate of 1.465 million units, down 2.8% from March but up 4.6% from April 2025. Single-family starts fell 9% from March, while the rate for units in buildings with five or more units reached 529,000.

Simonson pointed to the multifamily numbers as a sign of improvement after a long slump, 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 hold back buyer demand and that the market continues to face significant affordability challenges.

In a research note cited by Reuters, UBS analyst John Lovallo said combining Taylor Morrison and Clayton Homes would create a top-five U.S. homebuilder and called the acquisition "a strong vote of confidence in the mid-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 further fuel to the fire of consolidation."

Reuters noted that other homebuilders also have 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 orientation is uniquely well-suited to the multi-year investment cycle of homebuilding," she said in the announcement.