Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
DeCosmo James M
   2. Issuer Name and Ticker or Trading Symbol
Forestar Group Inc. [FOR] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
CEO - President
(Last)
(First)
(Middle)
6300 BEE CAVE ROAD, BUILDING TWO, SUITE 500		 3. Date of Earliest Transaction (Month/Day/Year)
12/05/2011
(Street)

AUSTIN, TX 78746		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 12/05/2011   M   2,000 A $ 13.26 135,157 (1) D  
Common Stock 12/05/2011   F   1,780 D $ 15.6 133,377 (2) D  

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Option (right to buy) (3) (4) $ 13.26 12/05/2011   M     2,000 02/01/2006 02/01/2012 Common Stock 2,000 $ 0 0 D  
Option (right to buy) (4) (5) $ 8.68             02/07/2006 02/07/2013 Common Stock 1,666   1,666 D  
Option (right to buy) (4) (6) $ 15.02             02/06/2005 02/06/2014 Common Stock 1,666   1,666 D  
Option (right to buy) (4) (7) $ 20.26             02/04/2006 02/04/2015 Common Stock 5,333   5,333 D  
Option (right to buy) (4) (8) $ 27.06             02/03/2007 02/03/2016 Common Stock 6,150   6,150 D  
Option (right to buy) (4) (9) $ 30.56             02/02/2008 02/02/2017 Common Stock 6,150   6,150 D  
Option (right to buy) (10) $ 28.85             02/12/2009 02/12/2018 Common Stock 74,000   74,000 D  
Option (right to buy) (11) $ 9.29             02/10/2010 02/10/2019 Common Stock 59,010   59,010 D  
Option (right to buy) (12) $ 17.8             02/09/2011 02/09/2020 Common Stock 32,016   32,016 D  
Option (right to buy) (13) $ 18.59             02/08/2012 02/08/2021 Common Stock 54,402   54,402 D  
Stock Appreciation Right (14) $ 9.29             02/10/2010 02/10/2019 Common Stock 131,345   131,345 D  
Stock Appreciation Right (15) $ 17.8             02/09/2011 02/09/2020 Common Stock 37,584   37,584 D  
Restricted Share Units (16) (16)               (16)   (16) Common Stock 40,366   40,366 D  
Restricted Share Units (17) (17)               (17)   (17) Common Stock 18,961   18,961 D  
Restricted Share Units (18) (18)               (18)   (18) Common Stock 8,069   8,069 D  
Performance Units (19)               (19) 02/08/2014 Common Stock 25,785   25,785 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
DeCosmo James M
6300 BEE CAVE ROAD
BUILDING TWO, SUITE 500
AUSTIN, TX 78746		   X     CEO - President  

Signatures

 Brad Stein signing on behalf of James M. DeCosmo   12/06/2011
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Reporting Person acquired additional shares by swapping shares already owned, resulting in a net increase in shares.
(2) In accordance with the Rights Agreement adopted by the Company on December 11, 2007, Preferred Stock Purchase Rights are deemed to be attached to the shares of Common Stock.
(3) Options Vesting Schedule - Exercise price is $13.26: Options Exercisable 02/01/2006 - 2,000.
(4) Shares acquired in a pro rata distribution by Temple-Inland Inc. through a spin-off on or around December 28, 2007.
(5) Options Vesting Schedule - Exercise price is $8.68: Options Exercisable 02/07/2007 - 1,666.
(6) Options Vesting Schedule - Exercise price of $15.02: Options Exercisable 02/06/2007 - 1,250; Options Exercisable 02/06/2008 - 416.
(7) Options Vesting Schedule - Exercise price of $20.26: Options Exercisable 02/04/2007 - 2,666; Options Exercisable 02/04/2008 - 1,333; Options Exercisable 02/04/2009 - 1,333.
(8) Options Vesting Schedule - Exercise price of $27.06: Options Exercisable 02/03/2007 - 1,537; Options Exercisable 02/03/2008 - 1,537; Options Exercisable 02/03/2009 - 1,537; and Options Exercisable 02/03/2010 - 1,537.
(9) Options Vesting Schedule - Exercise price of $30.56: Options Exercisable 02/02/2008 - 1,537; Options Exercisable 02/02/2009 - 1,537; Options Exercisable 02/02/2010 - 1,537; and Options Exercisable 02/02/2011 - 1,537.
(10) Options Vesting Schedule for Options Granted 02/12/2008 - Exercise price is $28.85: Options Exercisable 02/12/2009 - 18,500; Options Exercisable 02/12/2010 - 18,500; Options Exercisable 02/12/2011 - 18,500; Options Exercisable 02/12/2012 - 18,500.
(11) Vesting schedule for Options granted 02/10/2009 - Exercise price is $9.29: Options Exercisable 02/10/2010 - 14,752; Options Exercisable 02/10/2011 - 14,752; Options Exercisable 02/10/2012 - 14,753; and Options Exercisable 02/10/2013 - 14,753.
(12) Vesting schedule for Options granted 02/9/2010 - Exercise price is $17.80: Options Exercisable 02/9/2011 - 8,004; Options Exercisable 02/9/2012 - 8,004; Options Exercisable 02/9/2013 - 8,004; and Options Exercisable 02/9/2014 - 8,004.
(13) Vesting schedule for Options granted 02/8/2011 - Exercise price is $18.59: Options Exercisable 02/8/2012 - 13,600; Options Exercisable 02/8/2013 - 13,601; Options Exercisable 02/8/2014 - 13,600; and Options Exercisable 02/8/2015 - 13,601.
(14) Vesting schedule for Stock Appreciation Rights (SARs) granted 02/10/2009 - Exercise price is $9.29: SARs Exercisable 02/10/2010 - 32,836; SARs Exercisable 02/10/2011 - 32,836; SARs Exercisable 02/10/2012 - 32,836; and SARs Exercisable 02/10/2013 - 32,837.
(15) Vesting schedule for Stock Appreciation Rights (SARs) granted 02/9/2010 - Exercise price is $17.80: SARs Exercisable 02/9/2011 - 9,396; SARs Exercisable 02/9/2012 - 9,396; SARs Exercisable 02/9/2013 - 9,396; and SARs Exercisable 02/9/2014 - 9,396. SARs will be settled for cash.
(16) Restricted share units granted on 2/10/2009 will vest effective 2/10/2012. Restricted share units will be settled for cash based on the fair market value on the vesting date subject to a 1% ROA performance criteria.
(17) Restricted share units granted on 2/9/2010 will vest effective 2/9/2013. Restricted share units will be settled for cash based on the fair market value on vesting date subject to a 1% ROA performance criteria.
(18) Restricted share units granted on 2/8/2011 will vest as follows: 2,690 on 2/8/2012; 2,689 on 2/8/2013; 2,690 on 2/8/2014. Restricted share units will be settled for cash based on the fair market value on vesting date.
(19) Number of units received upon vesting will vary depending upon performance of Company stock over the performance period.

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