From CNBC: 2024-11-13 14:51:44

Exceptionally strong housing demand in the U.S. has large homebuilders in control, eyeing smaller builders for acquisition. Buyers include both domestic and Japanese companies. M&A activity in single-family homebuilders has hit a record year in dollar volume and number of deals, with 19 deals so far and more to come. Public builders have increased their market share from 30% to 50% over the past five years, benefiting from low mortgage rates and housing shortages. Japanese buyers are making significant moves in the U.S. homebuilding market, with half of the deals this year involving Japanese companies. These buyers have lower growth at home and cheaper capital, enabling them to pay more for acquisitions. Japanese companies are known for their value engineering techniques in homebuilding, increasing efficiency and affordability. Homebuilder M&A is expected to continue next year, with potential boosts from the new Trump administration’s housing policies.



Read more at CNBC: Homebuilder deal activity is surging, fueled by major Japanese buyers