KB Home Ready to Ramp Up Production
March 26, 2013
Homebuilder KB Home says it plans to be aggressive in investing more than $1 billion on land acquisition this year and step up development as the housing recovery grows stronger.
"With the backdrop of a housing recovery that is now accelerating, we feel it is the right time to step up our investment in growth," KB Home Chief Executive Jeff Mezger said on a recent conference call with analysts.
KB Home, the fifth-largest U.S. homebuilder, says it has seen its average selling prices increase for 11 consecutive quarters. Its average selling price during the first quarter increased 24 percent to $271,300, the builder’s highest first-quarter average selling price since 2006.
KB Home says it plans to invest in higher-priced markets as demand for bigger homes picks up again.
In the first quarter, KB Home invested about $350 million on land acquisition and development.
Last week, Lennar Corp., the nation’s third-largest U.S. homebuilder, said it plans to spend about $500 million per quarter on new land acquisitions as it also ramps up production.
Source: “KB Home to ramp up growth amid strong housing recovery,” Reuters (March 21, 2013)
Updated: April 18, 2019