AI zoning tool
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D.R. Horton is tapping a startup's AI zoning tool to build more homes
CNBCยท 2025-11-14 12:00
Core Insights - D.R. Horton is leveraging an AI tool from Prophetic to address the housing shortage in the U.S. caused by chronic underbuilding since the Great Recession, resulting in a deficit of approximately 4 million homes and a price increase of over 50% from pre-pandemic levels [2][4]. Group 1: Company Initiatives - D.R. Horton is the largest homebuilder in the U.S. and is focusing on using artificial intelligence to enhance home construction and tackle the housing crisis [2]. - The company aims to expand homeownership opportunities for American families by utilizing insights from Prophetic's AI platform for land acquisition and development [4]. Group 2: Industry Challenges - The construction industry faces significant challenges, including high costs and the complex process of acquiring and developing buildable lots, which hampers the ability to respond to housing demand [3]. - Identifying, acquiring, and entitling suitable land for development is highlighted as one of the largest challenges in providing affordable housing [4]. Group 3: Technological Solutions - Prophetic has created an AI-native platform that analyzes land acquisition and development, capable of processing extensive zoning documents from various jurisdictions [5][6]. - The software is currently operational in 25 states and plans to expand to all 50 states by June [5].