D.R. Horton, the largest homebuilder in the U.S., has announced a new division specifically dedicated to entry-level, lower-cost homes in the $120,000 to $150,000 range. The new division will focus on building homes in Texas, Georgia and Florida to start out.

The Texas-based firm is responding to demand, said D.R. Horton CEO Donald Tomnitz on an earnings call with investors this week.

“We wouldn’t be getting into Express Homes if we didn’t think it was the next segment of the market to recover,” Tomnitz said. The firm has “aggressive targets” for the division in 2015, he said.

Home sales have gotten off to a slower-than-expected start in 2014, in part because first-time homebuyers in many markets have faced rising home prices and low inventories.

Source: CNBC.com.

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