KB Home, headquartered in Los Angeles, is one of America's largest homebuilders, with domestic operations in California, Washington, Arizona, Nevada, Colorado, Texas, Florida, and North Carolina. In FY23, the company delivered 13,738 homes, generating revenue of $6.9 billion. The West Coast segment represented 32% of 3Q23 homebuilding revenue with just 22% of homes delivered, helped by an average home price of $692,000. The company targets the lower-middle portion of the market, with approximately half of sales to first-time buyers. Most of the homes the company sells are priced for the median-income household in that market, but KBH has also expanded into higher-priced markets. KBH's average selling price increased 18% to $500,000 in FY22. The company's fiscal year ends on November 30.
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Chris Graja, CFASenior Analyst: Retail