KB HOME

Overview

KB Home is a U.S. homebuilder focused on new residential construction, with homebuilding generating 99.6% of its 2024 revenue and a smaller financial services operation supporting the business.[1][2] Founded in 1957, the company has built nearly 700,000 homes and is headquartered in Los Angeles, California.[3]+2 Its core products are attached and detached single-family homes, townhomes and condominiums, aimed primarily at first-time, first move-up, second move-up and active-adult buyers, and its model is defined by a Built to Order approach that allows customers to personalize lot selection, floor plans and design features.[6]+2

KB Home’s footprint is concentrated in the United States, where it operates in nine states and 49 major markets, including Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, Texas and Washington.[9]+3 Its stated mission is to give customers the ability to purchase a new home that reflects what they value and how they want to live, at a price they can afford.[13] In 2024, KB Home generated $6.93 billion of revenue and had approximately 2,384 full-time employees at year-end, underscoring its scale as a large national homebuilder.

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Products & services

KB Home’s products are primarily new residential homes, including attached and detached single-family homes, townhomes, and condominiums. Its portfolio ranges from smaller, higher-density homes aimed at first-time buyers to larger homes in premium locations with additional amenities, and it also offers single-story floorplans for active-adult buyers. At the community level, KB Home typically develops 50 to 150 lots per product line, offers four to 15 home design choices, builds one to three model homes for product previews, and in some communities offers premium lots or multiple-story attached condominium-style units.[6]+7

A key product feature is KB Home’s Built to Order model. Buyers can select lot location, floor plan, elevation, and structural options, then personalize the home with additional finishes and options through KB Home Design Studios. The company also uses a centralized library of standardized, flexible floor plans and elevations that can be adapted across markets, including smaller-square-footage versions for affordability; generally 60% to 70% of delivered homes are Built to Order.[8]+8

KB Home also emphasizes technical product attributes around efficiency. Its homes incorporate energy-efficient and water-saving features; its ENERGY STAR certified new homes are described as achieving on average up to 20% better energy efficiency than comparable non-certified new homes and producing about 3,287 pounds less greenhouse-gas emissions per year than a typical new home. The company says WaterSense-labeled products use at least 20% less water than non-WaterSense products, and WaterSense labeled homes are designed to be at least 30% more water efficient than a typical new home. KB Home also uses the HERS Index to measure energy performance, reporting a national average score of 45 versus 130 for a typical resale home, and it offers solar homes in California and all-electric homes in many markets.[31]+18

Beyond the homes themselves, KB Home provides related services including various insurance products, title services in certain markets, and mortgage banking services including mortgage loan originations through KBHS Home Loans, an unconsolidated joint venture. Insurance offerings include property and casualty insurance and, in some cases, earthquake, flood, and personal property insurance. It also provides a limited warranty on all homes, typically including a 10-year structural warranty, two- to five-year coverage for electrical, heating, cooling, plumbing and certain other systems, and a one-year warranty for other components. Homebuilding represented 99.6% of total revenue in 2024, while financial services represented 0.4%.

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Geographic presence

KB Home’s homebuilding operations are organized into four geographic reporting segments: West Coast, Southwest, Central, and Southeast [60]. As of November 30, 2024, these segments covered nine states and 49 major markets: West Coast included California, Idaho, and Washington; Southwest included Arizona and Nevada; Central included Colorado and Texas; and Southeast included Florida and North Carolina [10][61]. The company also notes geographic concentration in California, Florida, Nevada, and Texas [62].

For fiscal 2024, homebuilding revenue was reported by region rather than by state or country: West Coast generated $2.932 billion, Southwest $1.310 billion, Central $1.453 billion, and Southeast $1.207 billion, against total homebuilding revenue of $6.902 billion [63]+4. This implies an approximate regional mix of 42.5% West Coast, 19.0% Southwest, 21.0% Central, and 17.5% Southeast in 2024 [63]+4.

KB Home’s principal executive offices are in Los Angeles, California, at 10990 Wilshire Boulevard [4]. Its selling footprint is localized within each market, with sales offices typically located in or adjacent to furnished model homes in each community, and KB Home Design Studios generally centrally located within the markets they serve [68][69].

Business segments

KB Home reports five segments: four homebuilding reporting segments—West Coast, Southwest, Central, and Southeast—and one Financial Services reporting segment. Its homebuilding divisions are aggregated into those four reportable regions based mainly on similarities in economic and geographic characteristics, product types, regulatory environments, sales and construction methods, and land-acquisition characteristics. Across those homebuilding segments, the business focus is land acquisition and development primarily for residential use and the sale of homes to first-time, first move-up, and active-adult buyers. Geographically, West Coast covers California, Idaho, and Washington; Southwest covers Arizona and Nevada; Central covers Colorado and Texas; and Southeast covers Florida and North Carolina.[70]+5

In 2024, the homebuilding regions accounted for essentially all revenue, with reported homebuilding revenue of $2.93 billion in West Coast, $1.31 billion in Southwest, $1.45 billion in Central, and $1.21 billion in Southeast, which works out to roughly 42%, 19%, 21%, and 17% of total company revenue, respectively. Financial Services contributed the remaining ~0.4% of revenue; that segment includes insurance products, title services in certain markets, and mortgage banking/origination services through KBHS Home Loans, and its revenues are generated primarily from insurance commissions and title services.

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Company history

KB Home began in 1957 in Detroit as Kaufman & Broad, founded by Donald Bruce Kaufman and Eli Broad as a local builder of entry-level homes.[79][80] Over the following decades, it grew into a large U.S. homebuilder; company filings say it has built nearly 700,000 homes since its founding in 1957.[3]

A major corporate milestone came in 1986, when KBH became a public company through an IPO by parent Kaufman and Broad Inc.[81] In 1989, the remaining KBH shares were distributed to the parent company’s shareholders, making KBH and Kaufman and Broad Inc. independent companies.[81] By late 2001, the company was filing as KB Home, after previously being known as Kaufman and Broad Home Corporation.[81][82] In the early 2000s, it expanded its Midwest presence through acquisitions including Chicago-based Zale Homes in 2003 and Indianapolis-based Dura Builders in 2004.

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Sources

• KB HOME — Press release (2024 Y)[1][14]
• KB HOME — Full financial report (2024 Y)
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