Another billion-dollar giant relocating out of California

Another billion-dollar company leaving CA

The company insisted it will "continue to maintain a significant presence in California through its six operating divisions."

LOS ANGELES - KB Home, a staple of the Southern California business landscape for decades, announced Tuesday that it will exit its Westwood headquarters next year. 

The move to Tempe marks a strategic shift for the developer as it seeks to streamline operations and capitalize on Arizona's lower cost of doing business.

What we know:

The relocation is scheduled to begin in spring 2027, bringing executive leadership and core corporate functions to the Phoenix metro area. 

KB Home is currently based in the Westwood neighborhood of Los Angeles but has deep historical ties to various regions, having been founded in Detroit before previously spending time in Phoenix and then California. 

The company confirmed that its six operating divisions in California will remain intact, overseeing more than 100 active communities throughout the state.

What they're saying:

Robert McGibney, president and CEO of KB Home, stated, "This move brings our teams together in a more collaborative environment, and Phoenix is the right place to do it. It positions KB Home to operate more effectively and supports the next phase of our growth."

The company also highlighted the economic benefits of the shift, noting that the Phoenix area provides a "business-friendly operating environment that is expected to further enhance efficiency and support long-term profitability."

What's next:

California homebuyers likely won't see an immediate change in local operations. 

The company plans to maintain its massive footprint in the Golden State, where it has built tens of thousands of homes over several decades. 

The transition will likely involve a phased relocation of corporate staff to the new Tempe facility throughout the first half of 2027.