D.R. Horton Vs. KB Homes: Comparing Two Major Homebuilders

When it comes to new home construction in the United States, D.R. Horton and KB Home are two of the biggest names in the industry.

Both companies build homes across wide geographic regions and offer a range of models and price points to suit different budgets and lifestyles.

But how exactly do these two homebuilding giants stack up against one another? Here is an in-depth look at D.R. Horton versus KB Home, including the key pros and cons of each.

A Brief Comparison Table

CategoryD.R. HortonKB Home
BrandsD.R. Horton, Express Homes, Emerald Homes, Breland Homes, Freedom HomesKB Home, Breckenridge
# of States298
# of MarketsOver 100Over 50
2021 Home Closings81,000+19,000+
Entry Level Price~$150K~$180K
Top End Price$1M+$1M+
CustomizationLimitedTouts personalization
Construction QualityMore consistentVariable reputation
Sustainability FocusModerateStronger emphasis
Customer SatisfactionBetter ratingsMixed reviews
Geographic StrengthsNational footprintWest Coast emphasis

Overview Of D.R. Horton

Founded in 1978 and based in Arlington, Texas, D.R. Horton (NYSE: DHI) is the largest homebuilder in the United States by volume. The company operates in over 100 markets across 29 states and closed on more than 81,000 homes in 2021.

D.R. Horton builds homes under its namesake brand, as well as Express Homes, Emerald Homes, Breland Homes, and Freedom Homes brands. Across its brands, the builder offers everything from affordable entry-level homes to luxury estate properties. Home prices typically range from around $150,000 on the low end to over $1 million at the top end.

D.R. Horton

Some key pros of D.R. Horton include:

  • Large geographic footprint: With a presence across most of the continental U.S., D.R. Horton gives homebuyers options in many markets.
  • Range of home types/prices: From starter homes to move-up residences to luxury dwellings, D.R. Horton offers diverse housing solutions.
  • Industry-leading volume: As the nation’s largest homebuilder based on closings, D.R. Horton benefits from economies of scale.
  • Solid customer satisfaction: The builder scores well on industry surveys for customer experience and quality construction.

Potential downsides of D.R. Horton include:

  • Cookie-cutter designs: Across its more affordable product lines, D.R. Horton relies on standardized floor plans.
  • Limited customization: Entry-level D.R. Horton homes allow for fewer structural custom options.
  • Production focus: Building homes rapidly and efficiently is prioritized over customization.
  • Quality variability: With different brands serving different markets, build quality is less consistent.

Also Read: Differences Between Ashton Woods And Lennar.

Overview Of KB Home

Headquartered in Los Angeles, KB Home (NYSE: KBH) is another very large builder operating in over 50 markets across eight states. In 2021, KB Home delivered over 19,000 new homes.

KB Home runs its operations under two brands: KB Home and Breckenridge. The company focuses mainly on first-time homebuyers and move-up buyers, with home prices ranging from around $180,000 up to $1 million plus.

Some pros of KB Home include:

KB Home
  • Strong West Coast presence: KB Home has deep roots in California and other West Coast markets.
  • Focus on personalization: KB Homes touts its options for buyers to customize floor plans and finishes.
  • Sustainability focus: The builder uses sustainable and energy-efficient construction practices.
  • Smooth buying experience: KB Home aims to make the homebuying process efficient and headache-free.
  • Good value: Buyers can get more features and space for the money with KB versus other major builders.

Drawbacks of KB Home potentially include:

  • Limited geographic reach: KB Home operates in fewer states and regions compared to national builders like D.R. Horton.
  • Smaller scale: Having delivered around 19,000 homes in 2021, KB’s volumes are lower than top competitors.
  • Narrower product range: KB lacks an entry-level/starter home brand comparable to D.R. Horton’s Express Homes.
  • Reputation variability: KB Home has faced some criticism for construction defects in certain markets.
  • Sales fluctuate with market: More geographically concentrated, KB is more vulnerable to regional downturns.

Also Read: Differences Between LGI Homes And KB Home.

D.R. Horton And Kb Home: Key Differences

While D.R. Horton and KB Home have both been successful homebuilders for decades, there are some notable differences between the two:

Brands and offerings: D.R. Horton captures more market segments with brands like Express Homes and Emerald Homes. KB Home focuses on a narrower mid-market buyer range.

Customization: KB Home touts personalization but D.R. Horton offers less flexibility with more standardized options.

Geography: D.R. Horton operates in twice as many states as KB Home but KB has a strong position out West.

Production volume: As the nation’s largest homebuilder, D.R. Horton closes significantly more home sales per year than KB Home.

Pricing: Entry-level D.R. Horton homes start lower, around $150K versus $180K. But KB may offer more value in move-up price points.

Construction quality: D.R. Horton edges out KB Home in reputation for consistent building standards and quality oversight.

Sustainability: KB Home has made sustainability a bigger part of its brand identity and construction practices.

Also Read: Is Lennar Better Than D.R. Horton?

Frequently Asked Questions (FAQ)

Who is KB Homes competitors?

KB Home’s main competitors in the homebuilding industry include D.R. Horton, Lennar, PulteGroup, Meritage Homes, Taylor Morrison, and Toll Brothers.

Who is Dr Horton competitors?

D.R. Horton’s major competitors include Lennar, KB Home, PulteGroup, Meritage Homes, Taylor Morrison, and Toll Brothers. As the nation’s largest homebuilder, D.R. Horton competes with these companies in markets across the United States.

Does Dr Horton build in Florida?

Yes, D.R. Horton is active in many parts of Florida. It has communities in Jacksonville, Orlando, Tampa, Fort Myers, and other Florida markets. The builder mainly operates under its D.R. Horton, Emerald Homes and Freedom Homes brands in Florida.

Does Dr Horton build in Virginia?

D.R. Horton is currently building new homes in multiple Virginia markets, including in Northern Virginia, Richmond, Virginia Beach, Chesapeake, Suffolk, Fredericksburg, and other parts of the state. The company has a strong presence across Virginia.

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The Verdict

When deciding between D.R. Horton and KB Home, consider factors like:

  • Location – Which builder operates more actively in your area?
  • Price range – Does one builder better serve your budget?
  • Home size – What square footage are you looking for?
  • Personalization – Do you want standard or customized options?
  • Quality expectations – Are consistent construction standards a priority?
  • Sustainability – Do eco-friendly features matter to you?
  • Customer service – Does one builder have better local reviews?

Think carefully about your housing wants and needs. Visit model homes, speak to local real estate professionals, and read builders’ reviews to make the best choice. While D.R. Horton and KB Home take slightly different approaches, both deliver quality new construction homes that can be great options for buyers. Choosing the right homebuilder is highly personalized based on your location, lifestyle, budget and preferences.

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