Forestar Group Inc. is a leading residential lot development company in the United States, operating as a majority-owned subsidiary of D.R. Horton, the nation's largest homebuilder. The company's core business model involves acquiring entitled or unentitled land, securing necessary zoning and environmental approvals, and developing the infrastructure required for single-family residential communities. Once the lots are finished, Forestar sells them to homebuilders, with D.R. Horton being its primary customer, though it also supplies lots to other local, regional, and national builders.
Forestar operates through a single real estate segment focused entirely on residential lot development. The company generates revenue primarily from the sale of these finished lots, as well as through short-term lot banking and undeveloped land sales. Geographically, Forestar has a broad national footprint, operating in over 60 markets across more than 20 states, with a strong presence in high-growth Sunbelt regions such as Texas, Florida, Georgia, and the Carolinas. Its strategic relationship with D.R. Horton provides a highly visible pipeline of demand, significantly reducing the speculative risk typically associated with land development. By focusing on short-duration, phased development projects, Forestar aims to achieve high asset turnover and consistent returns, distinguishing itself from traditional, capital-intensive land developers.
