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KB Home
KB Home, led by CEO Jeffrey Mezger, is the build-to-order homebuilder Eli Broad co-founded — targeting first-time buyers with an asset-light lot-option...
KB Home
KB Home was founded by Eli Broad and Donald Kaufman in 1957, initially trading as Kaufman and Broad before rebranding. Broad later became a major philanthropist and art collector, though the firm has long since operated as a publicly traded, institutionally owned homebuilder. Today, Chairman and CEO Jeffrey Mezger runs the company, which concentrates on entry-level and first-move-up residential construction. The firm operates a build-to-order model — buyers customize floorplans and fixtures pre-construction — which distinguishes it from spec-heavy peers. KB Home's operations span single-family detached homes, townhomes, and condominiums in over 45 markets across California, the Southwest, Florida, Texas, and the Southeast. The land strategy relies heavily on optioned lots, limiting balance-sheet exposure. Its mortgage joint venture, KBHS Home Loans, captures ancillary revenue from originated purchase loans. KB Home delivered over 13,000 homes in its fiscal 2024, generating roughly $6.5 billion in revenue. The company operates through four regional divisions and maintains a partnership with the National Wildlife Federation as the first national builder to certify every completed home as EPA WaterSense-labeled and ENERGY STAR-certified. In May 2025, the firm reported second-quarter results showing moderating input costs and a 10% year-over-year revenue increase (per public filings). The structural differentiator is the lot-optioning model paired with a factory-like build-to-order system. This constrains speculative inventory risk while allowing gross margin expansion as cycle times improve. The model depends on deep market-level land-acquisition teams and centralized supply-chain procurement, creating a capital-light growth engine uncommon among production homebuilders of similar scale.
General information
Firm type
Asset Manager
Year founded
1957
AUM
Undisclosed
Location
Region
North America
Country
United States
City
Los Angeles
Corporate office
Los Angeles, CA, United States
Principals
Jeffrey Mezger
Chairman, President and Chief Executive Officer
Sector focus
Frequently asked questions
Is KB Home a family office or a public company?
KB Home is a publicly traded homebuilder listed on the New York Stock Exchange under the ticker KBH. While co-founded by Eli Broad, who later became a prominent philanthropist and art collector, the firm has operated as an institutionally owned public company for decades. Broad's family wealth is now managed separately through The Broad Foundations and other vehicles, not through KB Home.
Who runs investment and land-acquisition decisions at KB Home?
Jeffrey Mezger, as Chairman and CEO, oversees the executive team that sets the strategic direction for land investment and homebuilding operations. Regional division presidents, reporting to the Chief Operating Officer, execute local land-acquisition decisions within centrally approved budgets and underwriting standards. The firm does not operate a separate investment committee as a family office or fund manager would.
What is KB Home's build-to-order model, and how does it affect capital deployment?
The build-to-order model lets buyers select floorplans and options before construction starts, which reduces speculative finished inventory. On the capital side, the firm controls the majority of its future lot pipeline through option contracts rather than outright purchases. This asset-light structure lowers land-related balance-sheet risk and allows KB Home to deploy free cash flow toward strategic land buys and stock repurchases rather than large-scale land banking.
Does KB Home maintain any affiliated wealth-management or investment vehicles?
KB Home operates KBHS Home Loans, a mortgage joint venture, to originate and process purchase loans for its homebuyers — not a wealth-management arm. Co-founder Eli Broad's family wealth is managed through independent family-office structures that are functionally separate from the public company. No affiliated fund, family-office, or venture arm exists within the KB Home corporate structure.
How does KB Home's lot-optioning strategy differ from competitors?
KB Home typically controls 60-70% of its future lot supply through option agreements with land developers, meaning it pays a deposit to secure lot take-down rights without carrying the full land cost on its balance sheet. This contrasts with builders that prefer bulk land acquisitions and self-development. The approach reduces capital intensity and allows quicker scale-downs when demand softens, making the firm more resilient through housing cycles.
Profile maintained by Altss using OSINT (open-source intelligence), regulatory filings, licensed data partners, and verified direct submissions. Read the methodology. Last updated: . Continuous refresh with full update cycles at least every 30 days.
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