One of the leading U.S. homebuilding companies, KB Home (KBH) recently acquired 78 acres of land in San Antonio. Located in the sought after submarket of Far Northeast, these lots will house a new community, Mirabel. The company is expected to commence land development this September while homebuyers can purchase homes in spring 2015.
The residents of Mirabel can choose from four one-story and twelve two-story floor plans. Ten of these floor plans will comprise master bedrooms in the first floor. The residents will be offered exclusive access to a community park and swimming pool and also enjoy easy access to reputed schools and major employers in the area. Mirabel will accommodate a total of 276 homes, where each home can include up to five bedrooms and three baths.
All the homes will offer energy efficient features and Wiser home management systems, which will help residents save their utility bills. The homes will also incorporate WaterSense labeled faucets and fixtures.
KB Home has been increasing its land acquisition and land development activities from the second half of 2012, owing to the housing market recovery. The company spent $1.14 billion in land investment in fiscal 2013, significantly higher than $564.9 million spent in 2012.
The company continued its land investments and spent $354.3 million in the first quarter of fiscal 2014. 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.
KB Home carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Investors interested in the homebuilding sector can also consider stocks like Gafisa S.A. (GFA), TRI Pointe Homes, Inc. (TPH) and Toll Brothers Inc. (TOL). All the three companies carry a Zacks Rank #2 (Buy).