Green Builder Profile: KB Home | Standing Out by Supporting Advancement

Los Angeles-based KB Home continues to uphold its reputation as one of the largest and most recognized homebuilders in the industry. KB Home stands out from other homebuilders by providing homebuyers with exceptional choice and control. The builder gives buyers the ability to personalize their homes, from homesites and oor plans to design features.

Recently, KB Home announced that it is the first homebuilder to join the Well Living Lab Alliance, a collaboration of Delos and Mayo Clinic, which is supported by a global consortium and dedicated to the advancement of knowledge to transform indoor environments, and ultimately improve human health and well-being.

The Well Living Lab draws upon the expertise of building, health and behavioral sciences to conduct human subject studies in simulated and real-world settings. The lab comprises 7,500 square feet of research space adjacent to Mayo Clinic in Rochester, Minnesota, and is the first research center devoted exclusively to this field of study.

“In joining the Well Living Lab Alliance, KB Home will support the advancement of science
to generate evidence-based ndings that can be used to bene t our customers in the future,” said Jeff Mezger, KB Home’s Chairman, President and CEO. “KB Home is actively engaged in developing cutting-edge solutions that can elevate the health and comfort of our homebuyers, and our participation in the Well Living Lab Alliance underscores that commitment.”

“The fourth quarter marked an excellent nish to scal 2019, with particular strength in two key metrics – net order growth and housing gross pro t margin,” said Mezger. “Our net orders advanced 38 percent year over year, reflecting strong demand for our built-to-order product at affordable price points, together with limited inventory in our served markets.”

In regards to the company’s Returns-Focused Growth Plan in place since 2016, Mezger continued, “With the conclusion of the third year of this Plan, our 2019 results re ect incredibly strong progress relative to 2016 when we launched the Plan and set the stage for the new year. We have begun 2020 on sound footing, with a 26 percent year-over-year increase in our backlog value to $1.8 billion, and the composition of both our backlog and community portfolio re ecting higher margins. As such, we believe we are well positioned to further expand our profitability this year and meaningfully grow our return on equity.”

The builder will continue to invest aggressively in land acquisition and development, mainly in high-end locations, which is critical for community count as well as top-line growth.

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