Berkshire Hathaway Says It's Now America's 4th-Largest Homebuilder. It Also Owns More Than 10% of Lennar.
2026-10-05 14:15
•Matthew Benjamin •The Motley Fool
•• •••••• Axe Cap view
Berkshire Bets Big on US Homebuilding Amid High Rates
Berkshire Hathaway’s move to become the fourth-largest US homebuilder signals confidence despite mortgage rate challenges.
Berkshire Hathaway’s recent acquisition of Taylor Morrison to form the fourth-largest US homebuilder underlines a bold long-term bet on housing. This comes at a time when mortgage rates hover just above 7%, crushing affordability for many buyers. The housing shortage persists, yet this firm’s CEO insists their play is a decade-long story, not a quarterly sprint. For South African investors, this contrasts sharply with local banks like Standard Bank and FirstRand, where exposure to rising consumer credit defaults is more immediate. While the US housing sector may take time to rebound, the rand’s next moves around USD/ZAR should watch global risk sentiment and US rates, as these profoundly influence cost of capital here. Given disrupted demand in housing globally, the case to jump into SA financials or rand strength is shaky right now. But Berkshire’s patience serves as a reminder: markets often reward those who can see beyond the short-term pain. this is just our opinion and not financial advice
Watch USD/ZAR closely for signs of dollar strength easing before considering SA bank shares; avoid chasing housing plays linked to US mortgages. Patience remains key amid volatile credit conditions.
- USD/ZAR
- Standard Bank
- FirstRand
- US mortgage rates remain elevated
- Rand volatility spikes with global risk shifts
6/10
Berkshire Hathaway has become America's 4th-largest homebuilder after acquiring Taylor Morrison for $6.8 billion and merging it with Clayton Properties Group. The combined entity delivered nearly 23,000 homes in 2025. Berkshire also holds an 11% stake in Lennar and smaller positions in other homebuilders. Despite industry challenges from housing shortages and high mortgage rates near 7.3%, Berkshire is taking a long-term investment approach, with CEO Greg Abel stating the company is committed to the housing sector for the long term.
Our take is based on reporting first published by The Motley Fool.