Berkshire Hathaway, led by CEO Warren Buffett, has made a significant investment in three leading U.S. homebuilders: D.R. Horton, Lennar, and NVR, as per the company’s disclosure to the U.S. Securities and Exchange Commission on Monday. The total investment surpassed $800 million, with the majority being in D.R. Horton.

This strategic move aligns with the current upswing in U.S. homebuilder stocks. 2023 has seen a stellar performance from these companies, with D.R. Horton and Lennar seeing an increase of 38.0% and 36.2% respectively, year-to-date. NVR also showed considerable growth, with a 33.5% increase this year.

New Home Sales Show Recovery

Boosting this growth is the recovery of new home sales in 2023, following a significant drop due to last year’s mortgage rate shock. Despite this rebound, new home sales remain 32.2% below the peak of the pandemic housing boom in August 2020.

One factor contributing to the rebound is the innovative approaches adopted by homebuilders to increase affordability and attract buyers. Amid a housing market where inventory is limited and prices are high, homebuilders have effectively reduced house prices through various incentives, such as mortgage rate buydowns and price reductions.

Read more at Fortune.com.