Giant homebuilder KB Home shifts strategy amid a housing market where it lacks pricing power |
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There’s no doubt about it: Housing market softening across the Sunbelt—the epicenter of U.S. homebuilding—has caused homebuilders to lose pricing power over the past year.
Amid the additional margin compression, some giant homebuilders are adjusting their strategies. Lennar is finally easing up a little on its market share, taking volume-over-margin strategy, while KB Home—a homebuilder ranked No. 526 on the Fortune 1000—said on December 18 that it plans to lean even harder into built-to-order (more on that below).
At the end of last week, KB Home posted its Q4 2025 earnings—the three months ending November 30. During its earnings call, it underscored just how tricky the current housing market remains, even for builders that have avoided the most aggressive incentive wars and speculative inventory strategies.
In today’s article, ResiClub highlights seven key takeaways from KB Home’s latest earnings.
During the Pandemic Housing Boom, many publicly traded homebuilders achieved record profit margins as home prices soared and buyer demand ran red-hot. Ever since the national housing demand boom fizzled out in the summer of 2022, many large homebuilders have reduced margin and made........