D.R. Horton, Inc. (DHI) Stock Analysis

D.R. Horton’s primary competitive advantage is its unmatched scale and geographic reach. As of mid-2025, DHI operates in 126 markets across 36 states and is a top-5 builder in 117 of those markets. It builds roughly one in every seven new single-family homes in the U.S., with market shares of 12–17% in major metros such as Dallas-Fort Worth, Houston, Phoenix, and Atlanta—often double that of the next largest competitor.

This scale yields significant cost advantages. DHI secures volume discounts from suppliers and subcontractors, enabling it to offer homes at an average closing price of $373,700—well below the national average of $501,500. Over 70% of its homes close below $400,000, supporting strong demand from entry-level and first-time buyers, a segment less served by rivals like Lennar or PulteGroup.

DHI’s vertical integration—through DHI Mortgage and DHI Title—streamlines the buying process and captures additional margin, with 80% of closings financed in-house. Its land strategy, including a 62% stake in Forestar (the largest U.S. lot developer), ensures reliable lot supply and cost control.

The company’s decentralized operating model empowers local managers, supporting responsiveness to market shifts. Employee tenure is high (executive average: 28 years), fostering operational discipline and customer focus. While DHI faces industry-wide risks—rising rates, affordability pressures, and regulatory headwinds—its scale, cost structure, and integrated platform provide a durable edge over regional and national peers.