D.R. Horton operates in New York with limited presence due to regulatory and market challenges. The company focuses on suburban and mid-rise developments but faces hurdles from high land costs, strict zoning laws, and a prioritization of affordable housing. Horton’s projects in the region often align with mixed-use communities but struggle to compete with local builders and government-subsidized initiatives.

New York’s housing market presents unique barriers for national builders like D.R. Horton. Land costs in the city average $200–$300 per square foot, far exceeding the U.S. average of $50–$80, according to the New York City Planning Department. Strict zoning regulations, such as the requirement for 20–30% affordable units in new developments, increase construction expenses and complexity. For example, a 2022 report by Crain’s New York Business found that developers must allocate $15–$20 per square foot for affordable housing mandates, a significant burden for firms prioritizing profitability. Additionally, New York’s unionized labor market adds 15–20% to labor costs compared to non-unionized regions. These factors limit Horton’s scalability.

In 2023, Horton secured permits for 1,200 units in Queens and Brooklyn, representing less than 5% of the company’s national output, per U.S. Census data. Meanwhile, local firms like L+M Development Partners and HFZ Properties dominate with 60–70% market share, leveraging deep regional knowledge and public-private partnerships. Horton’s reliance on national financing models also clashes with New York’s preference for community-based, tax-exempt bonds. Despite these challenges, Horton continues to explore collaborations with city agencies, such as a $500 million affordable housing pledge under Mayor Eric Adams’ administration. However, long-term success hinges on navigating regulatory and cost dynamics unique to New York.