D.R. Horton warns new cluster rules raise finished-lot costs, prompting commissioner questions on affordability and infrastructure

Barack Saltzman, division president for D.R. Horton East Tennessee, told the commission that changes to Blount County's cluster-development regulations have "doubled the cost of a buildable finished lot with utilities installed," and argued the policy could make new homes less affordable for local buyers. Saltzman said the differential could be about $30,000 per lot and that some regulatory features — boulevard entrances, road frontage and required utilities — add substantial per-lot costs.

Commissioners pressed Saltzman for the data behind his estimates. Commissioner Kimsey questioned the company's use of a "5x" rule of thumb (that a finished house sells for roughly five times the lot cost) and asked whether greater density would actually lower sales prices after accounting for infrastructure, road capacity, school impacts and emergency services. Saltzman characterized the 5x figure as "a typical industry rule of thumb"—land representing roughly 18–20% of the final price—and said he used that assumption in the firm's calculations.

Several commissioners voiced concern that higher density could strain county roads and services if infrastructure is not upgraded in tandem; Saltzman replied developers expect growth to produce tax revenue that can help pay for infrastructure but acknowledged local governments are responsible for some investments. Commissioners also asked about warranty claims and construction quality; Saltzman said D.R. Horton carries common industry warranties (one-year cosmetic, two-year mechanical) and relies on subcontractors for construction work.

The exchange did not produce a decision on specific zoning changes. Commissioners requested more detailed data on the assumptions and on traffic and infrastructure consequences before considering ordinance amendments affecting cluster development.