One of the biggest homebuilders in the country announced plans to move its headquarters out of California last week. KB Home, which employs over 2,300 people and is valued at around $3.7 billion, according to Forbes, said it will leave Los Angeles and relocate to Tempe, Arizona, in spring 2027.
In a news release, the building giant cited a more “business-friendly operating environment” in Arizona and that the departure from California would “lower the company’s cost structure over time.”
Founded in Detroit in 1957, KB Home’s forthcoming move will mark its return to the Phoenix area, where the company was headquartered for a few years in the 1960s before shifting its operations to Los Angeles.
“While the corporate office is moving to Arizona, KB Home will continue to maintain a significant presence in California through its six operating divisions,” KB Home spokesperson Craig LeMessurier wrote in an email to SFGATE.
The company has a large footprint in the state, with projects from San Diego and Riverside counties to the Bay Area and Sacramento region. “Over the years, the company has built tens of thousands of homes across the state and remains deeply committed to serving California homebuyers, with more than 100 communities currently open statewide,” LeMessurier said.
“We opened seven new communities in the last six months and plan to open six more by the end of 2026,” LeMessurier said.