Acquisitions on the Rise Among Home Builders
There’s an uptick in the number of home builders reporting that they have been approached about being acquired.
In fact, the National Association of Home Builders noted that number has doubled in less than a year, according to recent results from the NAHB/Wells Fargo Housing Market Index (HMI) survey.
NAHB said that in challenging economic environments, there often is consolidation among home builders, with larger companies (or investors) looking to enter new markets or offer different products.
It said that trend already is accelerating at the high end of the market. For example, so far this year Taylor Morrison was acquired by Berkshire Hathaway; Tri Pointe Homes by Sumitomo Forestry; and United Homes Group and Holiday Builders by Stanley Martin Homes.
The NAHB said that to better understand the extent of this phenomenon across a representative sample of home builders, the HMI survey asked about merger and acquisition activity in August 2025 and again in June 2026.
Increased M&A Activity
Results show an increase in the share of builders reporting increased M&A activity in their local markets, from 14% in August 2025 to 21% in June 2026.
There could be more completed deals in the near future as more builders are reporting being approached for potential mergers or acquisitions, the survey showed.
NAHB said that the share of builders who have been approached for an acquisition and/or merger doubled between August 2025 and June 2026, from 9% to 18%. As a result, the segment who have not been approached at all dropped from 87% to 78% in that period.
When asked about future plans for growth, NAHB said that most builders (61%) plan to expand organically in their existing markets. Only small minorities plan said they to expand by acquisition (6%) or to be acquired by another company (5%).
In a deal that deepens its bet on the U.S. housing market after a long downturn, Berkshire Hathaway agreed in June to acquire Taylor Morrison Home for $6.8 billion.
The Omaha, Nebraska-based Berkshire will pay $72.50 per share in cash for Taylor Morrison, representing a 24% premium to the homebuilder’s closing price on May 29 and values the company at about $8.5 billion, including debt, CNBC reported. It marks one of the first major strategic deals under 95-year-old Warren Buffett’s successor, Greg Abel, who took over as CEO at the start of 2026.
The acquisition, which is expected to close in the second half of this year, is relatively modest by Berkshire standards as it’s sitting on a cash hoard nearing $400 billion, CNBC reported.
