Homebuilder owned versus controlled lots separates homesites a builder owns outright from lots it has secured through purchase contracts, options, or other control arrangements.
The mix is a key measure of land capital intensity and flexibility.
Owned lots commit more balance-sheet capital
D.R. Horton reported 126,600 owned land and lots and 441,900 lots controlled through land and lot purchase contracts at June 30, 2026.
That was a 22% owned and 78% controlled mix.
Controlled lots can give a builder access to future supply without purchasing all of the land upfront.
Controlled does not mean risk-free
Control structures can still require:
- option deposits;
- earnest money;
- takedown commitments;
- development reimbursements; or
- contract-specific obligations.
Some deposits can be forfeited if the builder walks away.
Investors should therefore distinguish lower land ownership from zero economic exposure.
Definitions differ across builders
Meritage Homes reports the percentage of total homesites controlled off balance sheet.
D.R. Horton reports lots controlled through land and lot purchase contracts and separately describes its relationship with Forestar.
Other builders may use terms such as optioned, controlled, under contract, or unconsolidated land.
Those categories should not be normalized without reading the methodology.
The mix changes downside flexibility
In a slowing housing market, a more option-heavy lot pipeline can let a builder reduce future land takedowns more quickly than if it already owns the land.
In a strong market, owned land can provide secure supply and capture land appreciation.
The metric therefore describes a capital-allocation tradeoff rather than a simple higher-is-better ratio.
Primary-source examples
- D.R. Horton third-quarter 2026 results
- D.R. Horton third-quarter 2026 Form 10-Q
- Meritage Homes first-quarter 2026 results
Homebuilder owned-versus-controlled lots are most useful as a land-capital and optionality measure whose contractual definitions must remain issuer-specific.
Part of the Homebuilder Operating Model
See It in Company Research
These companies are examples of how the concept is reported or discussed in public filings. Definitions can differ by issuer; these links open company research rather than a normalized metric comparison.
Continue Research
Continue from the concept into the Grizzly Bulls research surface that best matches the next question. These links are research continuations, not recommendations or required steps.
Compare homebuilders
Continue into stock comparison for land optionality, inventory risk, closing margins, SG&A leverage, returns on capital, balance-sheet exposure, and valuation context.
Explore more topics in the Financial Research Encyclopedia.