Warren Buffett Doubles Down on US Housing Market, Invests Heavily in Homebuilders and Building Supplies.

Warren Buffett's Berkshire Hathaway has significantly increased its holdings in homebuilders and building supply companies, with new positions in Pool Corp., Lennar Corp., Nucor Corp., DR Horton Inc., and Allegion PLC. The moves signal a strong conviction in the US housing market, which has seen a large spread between sellers and buyers and falling mortgage rates.

Warren Buffett's Berkshire Hathaway has significantly increased its holdings in homebuilders and building supply companies, signaling a strong conviction in the U.S. housing market. The conglomerate revealed new positions in Pool Corp., Lennar Corp., Nucor Corp., DR Horton Inc., and Allegion PLC in its latest quarterly filing with the Securities and Exchange Commission [1].

The investments, which totaled over $1.8 billion at the end of June, include 6.61 million shares of Nucor, valued at $856.8 million, 1.49 million shares of D.R. Horton, valued at $191.5 million, and an unspecified stake in Lennar, valued at nearly $800 million [2]. These investments are part of Berkshire's ongoing strategy to diversify its portfolio and invest in sectors offering long-term growth potential.

The addition of Nucor to Berkshire's portfolio is significant, as the steel manufacturer is a key player in the construction industry. The company's shares saw a 6% increase in extended after-hours trading following the disclosure [3]. Similarly, D.R. Horton and Lennar, two of the largest homebuilders in the United States, also saw gains in their stock prices following the announcement of Berkshire's new investments [3].

These investments underscore Buffett's focus on real assets like housing and infrastructure, which are generally considered less volatile than other sectors. The move is a surprise to many, given the economic uncertainty and market volatility in recent years. However, it reflects Buffett's long-term investment strategy and his belief in the resilience of the construction and materials sectors as the economy continues to rebound [4].

Berkshire Hathaway's latest strategic positions also highlight a broader trend of investor focus on industrial resilience and sector rotation. Similar dynamics have played out across other markets, as evidenced by the surge in Japanese equities earlier this year and the strong corporate performances of companies like Deckers Outdoor [4].

The housing market has faced persistent headwinds over the past few years, with mortgage rates remaining stubbornly high while home prices surge. However, many housing experts now believe that mortgage rates will decline next year, leading to a modest market recovery in 2026 [5]. Berkshire Hathaway HomeServices recently released its real estate market forecast for Q4 2025, expecting the housing market to soften this year but anticipating a recovery in 2026 [5].

References:
[1] https://apnews.com/article/warren-buffett-berkshire-hathaway-lennar-nucor-drhorton-8ded0e379e9e29dab9af66a88dc1e9a2
[2] https://www.ainvest.com/news/warren-buffett-reveals-1-8-billion-secret-berkshire-hathaway-latest-13f-filing-2508/
[3] https://www.barchart.com/story/news/34163001/warren-buffett-s-company-reveals-new-investments-in-nucor-homebuilders-lennar-and-dr-horton
[4] https://tradersunion.com/news/market-voices/show/438439-berkshire-nucor-dr-horton/
[5] https://www.thestreet.com/real-estate/warren-buffetts-berkshire-hathaway-predicts-major-mortgage-rate-changes-for-2026