Homebuilding Giant KB Home Pulls Out of California, Moves HQ to Arizona

The company cites cost savings and a more collaborative work environment as key reasons for the relocation from Los Angeles to Tempe.

Apr. 14, 2026 at 3:51am

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A sleek, minimalist studio photograph of a brushed metal and glass model of a modern office building, floating elegantly on a clean white background and dramatically lit from the side to cast long shadows, symbolizing the financial and logistical challenges of operating a major business in California.The relocation of KB Home's headquarters from California to Arizona reflects the growing exodus of major corporations seeking to escape the state's high costs and challenging business climate.Phoenix Today

KB Home, a major homebuilding company, has announced plans to move its headquarters from Los Angeles to Tempe, Arizona in spring 2027. The company cited the ability to cut costs and foster a more collaborative work environment as the primary drivers behind the decision to relocate to the Phoenix suburb.

Why it matters

KB Home's exit from California is the latest in a growing trend of businesses and residents fleeing the state due to high costs of living and doing business. This move raises further questions about California's ability to retain major corporations amidst an ongoing 'California exodus' to more business-friendly states like Arizona.

The details

KB Home will be establishing its new headquarters at Hayden Ferry Lakeside in Tempe, Arizona, just minutes from the Phoenix airport. The company says the shift to the Phoenix area will allow it to reduce costs compared to the sky-high prices in the Los Angeles market. Arizona's more favorable business climate was also cited as a key factor in the relocation decision.

  • KB Home plans to begin the move to its new Tempe headquarters in spring 2027.

The players

KB Home

A major U.S. homebuilding company that is relocating its headquarters from Los Angeles to Tempe, Arizona.

Robert McGibney

The CEO of KB Home who cited cost savings and a more collaborative work environment as reasons for the company's move.

Tempe, Arizona

The Phoenix suburb where KB Home will be establishing its new headquarters, attracted by the lower costs and business-friendly climate compared to California.

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What they’re saying

“This move brings our teams together in a more collaborative environment, and Phoenix is the right place to do it.”

— Robert McGibney, CEO, KB Home

What’s next

KB Home plans to begin the relocation process in spring 2027, with the goal of establishing its new headquarters in Tempe, Arizona by the end of that year.

The takeaway

KB Home's decision to leave California and move its headquarters to Arizona is the latest example of a major corporation fleeing the high costs and challenging business climate of the Golden State. This trend raises concerns about California's ability to retain large employers, as more companies seek out lower-cost, more business-friendly alternatives in states like Arizona.