REALTOR® Magazine-Daily News-D.R. Horton Fights to Retain Top Builder Spot

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Daily Real Estate News | June 11, 2009 | D.R. Horton Fights to Retain Top Builder Spot
The merger of Pulte Homes Inc. and Centex Corp. will strip D.R. Horton Inc. of the title of largest U.S. home builder, a change the company apparently doesn’t like.

"A number of people have asked us about some transaction that's contemplated in the industry and how we feel about being No. 2," says Donald J. Tomnitz, Horton's president and CEO. "I would say to you that we plan on being the largest and most profitable builder."

To hold onto its title, Horton is targeting first-time buyers and building smaller homes with fewer amenities. Its average sale price between $200,000 and $210,000 is one of the sector’s lowest.

The company also has devised a new strategy for holding properties. It plans to secure land with a downpayment or option until it is ready to begin construction. This approach gives the company less profit when business is good, but is much safer when business is poor or just so-so.

Source: The Wall Street Journal, Dawn Wotapka (06/10/2009)