National home builder stakes its claim in city

By Chris Brawley Morgan

Published: June 28, 2008

Holly Williams and Frank McLendon didn't realize they would have to introduce their employer when they first moved here.

A few times they even had to explain that they do not work for a doctor by the name of "Horton.”

In fact, Williams and McLendon work for D.R. Horton. The nation's largest home builder is now the third most active builder — at least so far this year — in Oklahoma City, according to the May report of the Central Oklahoma Home Builders Association.

"Part of our job is to educate people to what D.R. Horton is. It's been a great challenge. We aren't used to people not knowing who we are,” said Williams, who is D.R. Horton's sales manager.

It was three years ago that D.R. Horton opened an office in northwest Oklahoma City.

More than a year ago, both Williams and McLendon, who is the D.R. Horton city manager here, moved to Oklahoma City from Texas, where many people know at least the basic facts about D.R. Horton, Williams said.

D.R. Horton, which operates in 27 states and 82 markets, is based in Fort Worth. It was started 30 years ago and is traded on the New York Stock Exchange under the ticker symbol DHI.

In Oklahoma City, however, the home-building industry is dominated by locally owned building operations. D.R. Horton is the only national builder in Oklahoma City.

In the past 20 years, several national builders have moved into the Oklahoma City market, where land is more plentiful than in most cities, Edmond builder Caleb McCaleb said.

When a publicly traded national building company enters a new city in other parts of the country, it is often able to use its equity to "grab” the most desirable land and gain a foothold in a new market.

"They monopolize the land,” said McCaleb, who owns McCaleb Homes. "What happens in Oklahoma City, they can't grab everything. There are too many choices.”

National builders usually spend between two and five years in the Oklahoma City market.

"Every one that has come, every one has left. Period,” McCaleb said.

So far, McLendon said, "We have very good luck with what we've done here.”

More than 20 people are employed by D.R. Horton in Oklahoma City. The company is building in 10 Oklahoma City-area additions. They are poised to add two more Edmond neighborhoods, Hawthorne Estates and Rosewood, to their roster, McLendon said.

Nationally, however, home builders are struggling as home prices plummet and foreclosures rise.

Donald R. Horton, the company founder and chairman of the board, said in May that market conditions remain "challenging.”

D.R. Horton's home building revenue for the second quarter of fiscal 2008 totaled $1.6 billion, compared with $2.6 billion in the same quarter of fiscal 2007.

McLendon said he couldn't discuss local numbers, saying only that "Oklahoma City is a good market for D.R. Horton.”

In the meantime, Williams said she regularly gets calls from D.R. Horton employees in other parts of the country, who wonder whether the Oklahoma City office might be the place to relocate.

"I'm originally from Shawnee, so I'm an Oklahoma girl coming home,” she said. "I'm thrilled to be in Oklahoma. Absolutely, this market is just wonderful. It's a very exciting time in Oklahoma.”

Although her company is currently the only national builder here now, Williams said, "I don't think it will last — once other national builders see the success we are having.”

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