Buffett’s successor Greg Abel says Americans are ‘struggling’ in housing market, Berkshire Hathaway bets $6.8B on homebuilder Taylor Morrison for long-term demand
Berkshire Hathaway CEO Greg Abel stated that consumers are "clearly feeling the pain, and struggling" in the housing market, which he expects to face a "bumpy road for a while." Despite this, Berkshire Hathaway recently paid $6.8 billion for homebuilder Taylor Morrison, one of Abel's first major acquisitions since taking over as CEO. The company believes Taylor Morrison will become a "very strong asset" over the next five to ten years, separating today's affordability crisis from America's long-term need for housing. Data shows single-family housing starts dropped 9.9% in July from June, and overall housing starts were 13.5% lower year-over-year, while Freddie Mac estimated a shortage of approximately 3.7 million homes as of Q3 2024.
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