Forestar Group

What Forestar Group does

Forestar Group Inc. (NYSE: FOR) is a pure-play residential lot development company that acquires raw land, secures entitlements, builds horizontal infrastructure, and sells finished lots to homebuilders. The company operates in 64 markets across 24 states, with a strategic focus on U.S. Sun Belt growth markets, and claims to develop 1 in every 50 single-family homesites in the United States. Forestar is a 75%-controlled subsidiary of D.R. Horton, the largest U.S. homebuilder by volume since 2002, and D.R. Horton is simultaneously Forestar's largest customer under a Master Supply Agreement; Forestar's stated commercial goal is to capture one-third of D.R. Horton's lot purchases while diversifying to 12 additional homebuilder customers.

The company's revenue is generated through three streams: (1) residential lot sales from development projects (the core stream), (2) lot banking projects that sell lots to land bankers who then resell to homebuilders, and (3) tract sales and other transactions. Average sales price per lot was approximately $112,800 in Q2 FY2026, and Forestar delivered more than 13,300 residential lots in the trailing twelve months ended March 31, 2026. The go-to-market is direct B2B sales to national, regional, and local homebuilders via relationship-based account management, complemented by a corporate website, community-specific pages, and an investor relations portal.

The business model is asset-turn and capital-light at the project level: Forestar carries $2.7 billion in real estate assets but holds no project-level debt, maintains $1.0 billion in total liquidity, and operates with a 19.2% net debt to total capital ratio at March 31, 2026. The contracted backlog of $2.2 billion across 24,100 lots under contract provides multi-year revenue visibility. Forestar became publicly traded in 2007 and is headquartered in Arlington, Texas, with operational subsidiaries in California, Nevada, and Washington. Leadership is heavily cross-pollinated from D.R. Horton, including Executive Chairman Donald J. Tomnitz (former D.R. Horton Vice Chairman and CEO) and CEO Anthony W. Oxley (former D.R. Horton SVP of Business Development).

Name

Forestar Group

Legal name

Forestar Group Inc.

Website

https://forestar.com

Company type

Public

Founded year

2007

Operating status

Operating

Headcount range

101–250 employees

Short description

Forestar Group is a pure-play residential lot developer that acquires, entitles, and develops finished lots for homebuilders across 64 markets in 24 U.S. Sun Belt states; it is a 75%-controlled subsidiary of D.R. Horton, the largest U.S. homebuilder and its largest customer.

Ownership category

akta.pro rank

Headquarters

HQ city

Austin

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Supply Chain, Personnel, Infrastructure, Marketing or Sales

Revenue model

1. Residential Lot Sales - Development Projects: Core revenue stream from developing residential lots and selling them to homebuilders. Development projects generate revenue by acquiring raw land, obtaining entitlements, developing infrastructure, and selling finished lots.
2. Lot Banking Projects: Lot banking involves selling lots to lot bankers who expect to sell those lots to homebuilders at a future date, providing additional revenue diversification.
3. Tract Sales and Other: Sale of larger tracts of land and other real estate transactions that supplement the core lot development business.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels5 records

Core offering

Forestar Group acquires raw land, secures entitlements, installs infrastructure, and develops finished residential lots that it sells to homebuilders across 64 markets in 24 U.S. Sun Belt states. The company serves as a pure-play lot developer, providing builders with turnkey residential lots through direct sales contracts, including strategic supply arrangements with D.R. Horton. Complementing its core development business, Forestar offers customized landowner acquisition plans and structured builder partnership programs supporting lot position control and takedown schedules.

Product overview

Forestar Group is a residential lot development company operating as a single unified platform focused on land acquisition, entitlement, development, and sale of residential lots to homebuilders. The company operates in 64 markets across 24 states and is a majority-owned subsidiary of D.R. Horton, the largest U.S. homebuilder by volume. The core product offering comprises the development and sale of residential lots, with complementary landowner services and builder partnership programs. The company also maintains over $2 billion in real estate assets with no project-level debt and strong liquidity.

Differentiator

Problem solved

Functional benefit

Products and services

• Forestar Communities Forestar Communities encompasses the company's residential community developments—from small neighborhoods to resort-style master-planned communities—located across 64 markets in 24 U.S. Sun Belt states. Each community combines residential lots, infrastructure, and amenities, and is sold to homebuilders (including D.R. Horton, Lennar, Ashton Woods, and others) who construct and sell the homes.
• Landowner Services Forestar's Landowner Services provide customized land acquisition plans to property owners including families, farmers, ranchers, investors, corporations, municipalities, and banks. Services include single- and multi-phase closings, flexible timing, and professional handling of transactions for parcels of 15 acres or more, supplying Forestar's raw land pipeline for residential development.
• Builder Partnerships Builder Partnerships are Forestar's commercial program offering lot position control, takedown schedules, and capital/financial flexibility to national, regional, and local homebuilders. The program is designed to help homebuilders increase financial returns and market share by securing access to Forestar's finished residential lots, anchored by a Master Supply Agreement with D.R. Horton.
• Forestar Residential Lots Forestar Residential Lots are the company's core product—entitled, finished residential lots acquired and developed by Forestar and sold to homebuilders for single-family home construction. Forestar delivered more than 13,300 residential lots during the twelve-month period ended March 31, 2026, with a strategic focus on asset turns and development efficiency.

Quantifiable outcome

• 1 in 50 single-family homesites in the U.S. developed by Forestar
• +2 more outcomes

Named customers12 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Scale indicators15 records

Recent moves7 records

Expansion highlights3 records

Broad incumbents

• Toll Brothers: National luxury-focused homebuilder with significant owned land position. Comparable to Forestar as a public homebuilder actively managing land development pipelines and competing for finished lots in select markets.
• Century Communities: Top-10 U.S. homebuilder focused on entry-level and first-move-up buyers, primarily in the Sun Belt and Mountain West — markets that overlap heavily with Forestar's 64-market footprint.
• Tri Pointe Homes: National homebuilder with significant owned-and-controlled lot position across Sun Belt and Western markets. Comparable to Forestar as a public homebuilder competing in similar geographies and customer base.
• Lennar Corporation: Second-largest U.S. homebuilder and a Forestar customer. Lennar operates LENX (a land development business) similar in concept to Forestar, and its land-light strategic evolution makes its land strategy a key comparable.
• M/I Homes: Public homebuilder with significant owned land position focused on Midwestern, Mid-Atlantic, Carolinas, Texas, and Florida markets — overlapping materially with Forestar's geographic footprint.
• PulteGroup: Top-tier U.S. homebuilder with substantial in-house land acquisition and development operations. Comparable to Forestar as a major buyer of residential lots and a competitor for entitled land in overlapping Sun Belt markets.
• Dream Finders Homes: Fast-growing public homebuilder with national footprint and active land development pipeline. Comparable as a growing public builder that could be both a customer and competitor for Forestar in select markets.
• Taylor Morrison Home Corporation: Top-5 U.S. homebuilder with significant land development activity and a focus on Sun Belt growth markets that overlap heavily with Forestar's footprint.

Direct peers

• Five Point Holdings: Public master-planned community developer building large-scale mixed-use and residential communities in coastal California. Closely comparable as a publicly traded, pure-play large-scale community and lot developer.
• D.R. Horton: The largest U.S. homebuilder by volume and Forestar's 75% parent company and largest customer. D.R. Horton also maintains an internal land development function, making it the most direct comparably-scaled counterpart to Forestar's lot development model.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/forestar-group-inc

Revenue estimate

Valuation estimate

Number of profiles

Profiles9 records

Subsidiaries3 records

Funding overview

Funding rounds1 record

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Forestar Group