Most home builders predicted that elevated mortgage rates and hesitancy to buy homes would be among their greatest challenges in 2026. As companies seek efficiencies and economies of scale, the industry is experiencing increased consolidation activity: Taylor Morrison was acquired by Berkshire Hathaway; Tri Pointe Homes by Sumitomo Forestry; and United Homes Group by Stanley Martin Home. The National Association of Home Builders/Wells Fargo Housing Market Index survey asked about merger and acquisition (M&A) activity in August 2025 and again in June 2026. Results reveal an uptick in the share of builders reporting increased M&A activity in their local markets, from 14% in August 2025 to 21% in June 2026. More than 40% of builders, however, report no changes in consolidation trends in the markets where they operate.
A second finding also points to somewhat higher levels of M&A activity in the industry, meaning the share of builders who have been approached for acquisition and/or merger doubled between August 2025 and June 2026, from 9% to 18%.
