Forestar Group Inc Dossier
Qualitative Analysis
Business overview
Forestar Group Inc. (NYSE: FOR) is a leading national residential lot development company operating as a majority-owned subsidiary of D.R. Horton, Inc., the largest homebuilder by volume in the United States. Forestar is primarily engaged in land acquisition and infrastructure development, transforming raw land into finished single-family residential lots. These lots are sold to local, regional, and national homebuilders, with D.R. Horton serving as its primary customer under a strategic Master Supply Agreement. The company operates a highly scalable, geographically diversified model across 64 markets in 24 states, focusing on entry-level and first-time move-up housing segments.
Research as of 20 Jun 2026
Strategic Initiatives
Growth programs, investments, and their expected impact
Acquiring raw and partially developed land to convert into a multi-year pipeline of owned and controlled lots, focusing on high-growth corridors in the Sun Belt and Southeast metros (Texas, Florida, the Carolinas, Phoenix, and Atlanta).
Expected impact: Underpins long-term lot supply, supports market share consolidation in a fragmented industry, and positions the company to capture resilient entry-level housing demand.
Growing sales to third-party national, regional, and local homebuilders to reduce customer concentration risk, while maintaining its core strategic relationship with majority shareholder D.R. Horton.
Expected impact: Aims to target approximately 30% of lot delivery revenues from builders other than D.R. Horton, broadening revenue streams and enhancing market reach.
Implementing automated layout design and centralized cloud platforms to link field teams, contractors, and homebuilders to shorten lot-to-home timelines and optimize site yields.
Mergers, Acquisitions & Partnerships
Recent deals and strategic collaborations
Strategic Partnerships
D.R. Horton acquired a majority stake in Forestar in October 2017. This relationship provides a highly de-risked business model with a built-in, high-volume customer. Forestar develops lots aligned with D.R. Horton's geographic needs, and D.R. Horton holds a right of first offer on a significant portion of Forestar's lot pipeline. Both companies aim to grow this relationship to represent one-third of D.R. Horton's total lot acquisitions.
Terms: D.R. Horton acquired its controlling stake for approximately $560 million in 2017. Historically, sales to D.R. Horton have accounted for approximately 70% to 89% of Forestar's total lot revenues.