DHI · Earnings call · 2026Q3T · Full report

Land Sourcing and Self-Development

HORTON D R INC /DE/ · 2026-10-29 · Importance 23 · Surprise 24 · In source text

Management said its current lot position gives it flexibility to choose between buying developed lots, working with third-party developers, and self-developing. It makes self-development decisions community by community and deal by deal, and said it has retained that capability in each division. The company is seeing some land opportunities, particularly in secondary markets, while continuing to evaluate each deal individually.

Key facts

• D.R. Horton's fiscal 2026 homebuilding investments in lots, land, and development totaled $8.2 billion.
• D.R. Horton's fourth-quarter homebuilding investments in lots, land, and development totaled $2 billion: $1.4 billion for finished lots, $500 million for land development, and $120 million for land acquisition.
• D.R. Horton expects future development activity to have better pricing and land residuals to reset toward current market conditions, absent fuel inflation.
• D.R. Horton expects land spending to remain relatively consistent, with no significant seasonal differences, and does not need to significantly build up or reduce its lot supply.
• D.R. Horton maintains self-development capacity in each division and has self-developed in some instances; it expects to do so in future instances as they arise.
• D.R. Horton remains flexible to buy developed lots, work with third-party developers, or self-develop when the deal is right.
• D.R. Horton purchased $465 million of finished lots from its majority-owned Forestar in the fourth quarter.
• Seventy percent of D.R. Horton's fourth-quarter home closings were on lots developed by Forestar or a third party, compared with 65% in the prior-year quarter.

Impact estimates