Warren Buffett's Berkshire Hathaway has disclosed investments in three major U.S. homebuilders – D.R. Horton, Lennar, and NVR – totaling over $800 million. The investment coincides with a significant rise in U.S. homebuilder stocks, driven by a rebound in new home sales in 2023. D.R. Horton and Lennar have seen impressive year-to-date gains of 38.0% and 36.2%, respectively, with NVR up 33.5%, compared to the S&P 500's 16.3% growth. This growth is attributed to innovative affordability strategies by home builders, such as mortgage rate buydowns and price reductions, aimed at attracting buyers. The scarcity of existing inventory has further boosted demand for newly constructed homes, resulting in heightened sales for homebuilders. Deutsche Bank predicts a prolonged housing shortage due to supply constraints in the industry.
Category
🗞
NewsTranscript
00:00 Benzinga and here's what's on the block. Warren Buffett's Berkshire Hathaway has
00:04 disclosed its investments in three major U.S. home builders,
00:07 D.R. Horton, Lenar, and NVR, totaling over $800 million.
00:10 The investment coincides with a significant rise in U.S. home builder stocks, driven by a rebound
00:16 in new home sales in 2023. D.R. Horton and Lenar have seen impressive year-to-date gains of 38%
00:23 and 36.2% respectively, with NVR up 33.5% compared to the S&P 500's 16.3% growth. This growth is
00:32 attributed to innovative affordability strategies by home builders such as mortgage rate buy-downs
00:38 and price reductions, aimed at attracting buyers. The scarcity of existing inventory has further
00:43 boosted demand for newly constructed homes, resulting in heightened sales for home builders.
00:48 Deutsche Bank predicts a prolonged housing shortage due to supply constraints in the industry.
00:52 For all things money, visit Benzinga.com
00:54 [BLANK_AUDIO]