One of the leading U.S. homebuilding companies, KB Home (KBH) recently acquired 278 lots in Santa Clarita in Los Angeles County, CA. These hillside lots will accommodate two communities, Canyon Heights and Canyon Crest, built under the Plum Canyon master plan.
The company is expected to commence model home construction in a few months while homebuyers can purchase homes by the end of the year. Prices of homes start from the high $500,000s.
The residents of Canyon Heights can choose from six one- and two-story floor plans. The homes can accommodate up to five bedrooms and five baths. On the other hand, the residents of Canyon Crest can choose from three two-story floor plans that accommodate up to six bedrooms with five and a half baths and three car garages.
Residents of both the communities will also have options to include an extra bedroom, home office, decks and patio covers, large walk-in dual closets in the master bedroom, and junior suites in the first floor. The residents can also avail other facilities, such as a swimming complex, a recreation center, and shopping and dining options.
All the homes will offer energy efficient features and Wiser home management systems, which will help residents save on their utility bills. The homes will also incorporate WaterSense labeled faucets and fixtures, which help to conserve natural resources. Buyers can even opt for solar panels, which help to lower energy bills further.
The recent acquisition of the lots will allow the company to strengthen its offerings in the lucrative market of Southern California. KB Home has been increasing its land acquisition and land development activities from the second half of 2012, owing to the housing market recovery.
As a result, KB Home witnessed a turnaround in order growth in first-quarter fiscal 2014, after reporting soft order growth for the past few quarters due to a lack of land and lots. The homebuilding company mainly focused on high-end locations, which drove community count and order growth in the recently reported first quarter.
Another homebuilding company, D.R. Horton Inc. (DHI), also reported solid order growth in the recently released second quarter of fiscal 2014.
KB Home carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Investors interested in the homebuilding sector can also consider stocks like William Lyon Homes (WLH) and Toll Brothers Inc. (TOL). While William Lyon sports a Zacks Rank #1 (Strong Buy), Toll Brothers carries a Zacks Rank #2 (Buy).