Overview

KB Home, a prominent home builder based in Los Angeles since 1963, has announced its decision to relocate its headquarters to the Phoenix metropolitan area by spring 2027. This move marks a significant shift for one of the largest homebuilding companies in the United States, which has deep roots in California.

The relocation is driven by the desire to reduce operational costs and provide employees with access to a more affordable housing market. Despite the move, KB Home plans to maintain six operating divisions in California, continuing its presence in the state.

Key details

  • KB Home was founded in 1957 by Eli Broad and Donald Kaufman.
  • The company has been headquartered in Los Angeles since 1963.
  • KB Home is recognized as one of the largest homebuilding firms in the U.S.
  • The headquarters is located near Wilshire Blvd. and Veteran Ave. in Los Angeles.
  • The company is moving its main office to Arizona to reduce costs.
  • Arizona's business-friendly environment was cited as a reason for the relocation.
  • KB Home plans to complete the move by spring 2027.
  • The company has over 100 projects and tens of thousands of homes in California.
  • In the last six months, KB Home has opened nine housing communities in Southern California.
  • There are plans to open 10 more housing communities by the end of 2026.
  • Since the announcement of the move, KB Home's shares have increased by around 1%.
  • Robert McGibney, the president and CEO, emphasized the benefits of a collaborative environment in Phoenix.

Context

KB Home's decision to relocate is part of a broader trend of high-profile firms leaving California for states with lower costs and more favorable business conditions.

What happens next

As KB Home prepares for its move, the company will continue its operations in California while transitioning its headquarters to Arizona, aiming to enhance its growth and operational efficiency.

What we don't know yet

Details regarding the specific location of the new headquarters in Phoenix and the impact on current employees have not been confirmed.