Amid concerns over expensive housing, high interest rates, and weakening purchasing power that have pressured U.S. homebuilder stocks throughout the year, a notable and counter-trend move has emerged from the investment giant Berkshire Hathaway.
Berkshire Hathaway has proceeded to acquire an additional $200 million worth of shares in Lennar Corporation, a major U.S. homebuilder listed on the New York Stock Exchange, within just three days. This move has pushed Berkshire's ownership to over 10%, despite Lennar’s stock having fallen nearly 25% since the beginning of the year.
According to foreign media outlet TheStreet, following the announcement of Berkshire Hathaway's purchase, Lennar's stock price rose sharply. On 22 Sep 2026 GMT+7, Lennar shares closed at $83.06, up 6.36% from the previous day.
Founded in 1954, Lennar Corporation is currently the second largest homebuilder in the U.S. Over its history, the company has built more than 1.5 million homes, serving a diverse range of buyers—from first-time homeowners and those seeking to upgrade, to active adults looking for retirement residences—across multiple U.S. regions.
Moreover, Lennar’s business extends beyond home construction and sales to include Financial Services that provide mortgage lending, property title inspection and transfer services, and other transaction completion support.
Simultaneously, Lennar operates LenX, a division responsible for technology, innovation, and strategic investments aimed at enhancing and advancing the company’s homebuilding business.
In simple terms, Lennar operates across multiple segments of the housing value chain—from construction to financing to transaction services—making its financial performance directly linked to consumer homebuying demand, construction costs, and the state of the U.S. mortgage market.
Barron's reported that Berkshire Hathaway purchased over $200 million worth of Lennar shares within a three-day trading period, resulting in Berkshire becoming a major shareholder with over a 10% stake.
This acquisition occurred while Lennar’s stock price was under significant pressure, drawing market attention as investors remain concerned about the U.S. real estate sector amid high home prices and mortgage interest burdens.
Lennar faces major headwinds due to high consumer housing costs. The company noted in prior earnings reports that the housing market continues to confront elevated mortgage rates, constrained homebuying capacity, and cautious consumer sentiment.
With mortgage interest rates remaining high, homebuyers face increased monthly payments while prices stay elevated, making "affordability" a critical challenge for U.S. homebuilders.
In Q3 2026, Lennar reported a net profit of $284 million, or $1.19 per share, down from $591 million, or $2.29 per share, in the same quarter the previous year, with total revenues around $8 billion.
During this period, new home orders declined 9% year-over-year to 20,879 units, and home deliveries fell 3% to 20,840 units. Gross margin from home sales decreased to 15.8% from 17.5% the prior year, reflecting profitability pressures in the homebuilding segment.
At the same time, Lennar held approximately $1.2 billion in cash and cash equivalents in its Homebuilding division, with a Homebuilding debt-to-capital ratio of 16.6% at quarter-end.
These figures contributed to Lennar’s stock dropping nearly 25% since the start of the year, trading below its book value—one of the factors attracting value-oriented investors.
Berkshire Hathaway’s increased stake came amid heavy selling pressure on Lennar shares, with the stock trading below book value, aligning with a value investing strategy.
However, Lennar’s business structure and financial condition suggest the company is facing cyclical challenges rather than fundamental operational problems.
Therefore, for investors interested in this stock, the focus should not only be on whether "Berkshire’s purchase will drive the stock price up," but more importantly on how the U.S. housing market recovers and whether Lennar’s new home orders return to growth.
Ultimately, what will determine the success of Berkshire Hathaway’s investment is Lennar’s ability to generate earnings amid ongoing pressures from high interest rates and reduced purchasing power in the U.S. housing market.
Sources:Lennar,Barron's,The Street,TradingView
For stock news and investment insights, visit Thairath Money to help you achieve "Good Finance, Good Life" athttps://www.thairath.co.th/money/investment
Follow the Facebook page: Thairath Money at this linkhttps://www.facebook.com/ThairathMoney