Berkshire Hathaway, Warren Buffett's company, has been buying Lennar, one of the largest US homebuilders, all through September. According to Bloomberg, Berkshire bought another $53.9 million of shares in the last three days of the month, bringing its stake to about 11%, worth roughly $2.2 billion, just behind Vanguard's 11.2%. In July, Berkshire also completed its $6.8 billion purchase of homebuilder Taylor Morrison, and it already owns Clayton Homes, the factory-built housing company.
The numbers behind the bet
Berkshire is buying while Lennar's business is under pressure. In its results for the quarter ended August 31, released September 16, Lennar reported:
| Lennar, Q3 2026 | This year | A year ago |
|---|---|---|
| New orders | 20,879 homes | 23,004 |
| Deliveries | 20,840 homes | 21,584 |
| Average sales price | $372,000 | $383,000 |
| Gross margin on home sales | 15.8% | 17.5% |
| Net earnings | $284 million | $591 million |
CEO Stuart Miller cited sales incentives of about 12% and cut full-year delivery guidance to 80,000–81,000 homes from 82,000–83,000, blaming higher mortgage rates and a weaker market. "Affordability remains the defining constraint," he said. The stock is down about 20% this year, and 24/7 Wall St. put it at roughly 0.85 times book value after the stake was disclosed.
Why buy now?
Berkshire CEO Greg Abel said on CNBC in early September that he does not expect housing to recover quickly, but that it is an industry Berkshire wants to own for the long term. The logic is a familiar one: the US is still short of homes, and Berkshire is buying a builder near the bottom of its margin cycle, at a price below the value of its assets. Bloomberg notes Lennar's margins are falling toward 2008 levels.
In other words, this is a bet on the next ten years of housing, not on next spring.
What it means if you are buying a home
- Builders are negotiating. Lennar's roughly 12% in incentives is what a slow market looks like at a big builder. At new-construction communities, ask for the full incentive sheet: closing-cost help and rate buydowns can be worth more than a price cut. In Atlanta I am seeing builder leasebacks for investors too, such as at Pepperpike Court and Hollywood & Main II.
- Rates are the reason. Freddie Mac's survey put the 30-year fixed at 7.40% on October 8, up from about 6.8% when Lennar's quarter ended. That is why builders are paying to buy rates down.
- Compare the builder's lender with your own. Builder incentives often require the builder's preferred lender. Get your own pre-approval so you can compare the total cost, not just the headline rate.
- Do not read it as a price call. Berkshire's own CEO expects a slow recovery. For buyers, a slow market with motivated builders is leverage you may not have once rates fall.
I closed a new Lennar home for buyers in Willow Creek, Watkinsville, last year, and I represent buyers at new-construction communities across metro Atlanta. If you are looking at new construction, I can help you weigh the incentives and the loan together. (This is market commentary, not investment advice about Lennar or Berkshire stock.)
