By Sean Colón
When Warren Buffett makes a move, the market listens. In mid-2023, Berkshire Hathaway shocked Wall Street by investing over $800 million in three powerhouse homebuilders: D.R. Horton, NVR, and Lennar. For the first time in 25 years, Buffett doubled down on public homebuilders — signaling not just confidence in their strength, but also long-term opportunity in the U.S. housing market.
For Arizona realtors, this is more than just investment news. It’s a roadmap. Understanding why Buffett sees value in homebuilders can help you better serve buyers, sellers, and investors in our own state’s rapidly evolving housing market.
Why Buffett’s Investment Matters to Realtors
Buffett doesn’t invest in trends. He invests in fundamentals. And the fundamentals in housing point to one undeniable reality: America is still underbuilt.
The U.S. faces a shortage of 3.8 million housing units, according to Freddie Mac.
From 2010 to 2020, population growth far outpaced new construction — leaving markets like Phoenix, Scottsdale, and Tucson scrambling to keep up with demand.
Even in 2023, while resale activity slowed, new home construction hit record highs as buyers turned to builders when inventory of existing homes dried up.
Buffett’s choice of D.R. Horton, NVR, and Lennar wasn’t random. These are companies known for scale, efficiency, and the ability to deliver homes even in uncertain markets.
For Arizona realtors, the lesson is clear: new construction will remain a powerful driver of transactions.
Arizona’s Market Mirrors Buffett’s Logic
In Phoenix alone, nearly 40% of homes sold in 2023 were new builds (Redfin data). With many existing homeowners locked into 3% mortgage rates and hesitant to sell, builders have become the lifeline for inventory.
Realtors should:
Build strong relationships with builders. They’re supplying the homes your buyers need.
Market the value of new construction. Builders often offer rate buydowns, closing cost credits, and incentives that make deals work in today’s interest rate environment.
Educate clients on long-term value. Like Buffett, you’re not just selling a home, but positioning buyers in a market where scarcity supports appreciation.
What This Means for Investor Clients in Arizona
Buffett’s pivot also signals opportunity for real estate investors in Arizona. With rental demand high and supply constrained, new-build homes can be strong additions to investment portfolios.
Median rent in Phoenix hit $1,800 in 2024, up 29% since 2019 (Zillow).
Demand for build-to-rent communities is surging, especially in the East Valley and West Valley.
Institutional investors are already targeting Phoenix, Goodyear, and Queen Creek for long-term plays.
When investors ask you, “Where’s the smart money going?” — you can point to Buffett’s bet.
Takeaways for Arizona Realtors
Buffett’s move into homebuilders isn’t just an $800 million headline. It’s a playbook.
New builds are king. Arizona’s shortage means builders will drive transaction volume for years. Arizona’s housing growth also ties into long-term water and land challenges. Learn more in our Arizona Real Estate Reality Check: What Realtors Need to Know About Housing and Water Challenges.
Partnerships matter. Just as Berkshire’s portfolio companies align with its investments, realtors who align with builders will thrive.
Think long term. Buffett invests with decades in mind. Realtors who position themselves as trusted advisors — guiding clients through housing shortages, affordability challenges, and growth markets — will win lasting business.
Your Next Step
Arizona real estate is evolving fast. Like Buffett, you don’t need to chase trends — you need to double down on fundamentals. Builders will continue to play a central role in our housing market. Position yourself where the growth is, and you’ll be the agent clients turn to for expertise and results.
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