Berkshire Hathaway already owns a group of housing-related operating businesses. A new investment in one Dividend King is also a bet on U.S. housing and construction. Buffett has often touted the strength of the U.

Warren Buffett says that Berkshire Hathaway has grown from humble beginnings to a trillion-dollar giant because they never compromise on product quality.

Berkshire Hathaway's $1 billion homebuilding investment indicates Warren Buffett's confidence in a future U.S. housing market rebound.