KB Home to Relocate Headquarters from Los Angeles to Arizona

One of LA's largest homebuilders cites cost savings and business-friendly environment as reasons for the move.

Apr. 14, 2026 at 8:52pm

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KB Home, a prominent Los Angeles-based homebuilder, announced plans to relocate its headquarters from Los Angeles to the Phoenix metropolitan area by spring 2027. The company cited the need to reduce costs and access a more affordable housing market as key factors behind the decision. KB Home, which has deep roots in California, will maintain six operating divisions in the state but is moving its main office to take advantage of Arizona's business-friendly environment.

Why it matters

KB Home's departure is the latest in a series of high-profile corporate exits from California, as companies seek to cut costs and operate in more favorable business climates. The move reflects broader trends of companies and residents leaving the state due to factors like high taxes, strict regulations, and rising housing costs.

The details

KB Home, which has been based in Los Angeles since 1963 and helped shape the growth of Southern California's suburbs, will relocate its headquarters to the Phoenix area by spring 2027. The company cited the need to reduce costs and place its employees in a more affordable housing market as key reasons for the move. KB Home also touted Arizona's business-friendly environment as a factor in the decision. Despite the headquarters relocation, the company plans to maintain six operating divisions in California and continue its homebuilding projects across the state.

  • KB Home announced the relocation plans in April 2026.
  • The company expects to complete the headquarters move by spring 2027.

The players

KB Home

A prominent Los Angeles-based homebuilder that has been based in the city since 1963 and helped shape the growth of Southern California's suburbs.

Robert McGibney

The president and chief executive of KB Home, who said the move will bring the company's teams together in a more collaborative environment and that Phoenix is the right place to do it.

Eli Broad

One of the founders of KB Home, who became one of LA's most influential civic leaders and used his wealth and influence to spur advancements in the public sphere, particularly in the arts.

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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, President and Chief Executive, KB Home

What’s next

KB Home plans to open 10 more housing communities in Southern California by the end of 2026, even as it relocates its headquarters to Arizona.

The takeaway

KB Home's departure from Los Angeles is the latest example of a high-profile California company seeking to cut costs and operate in a more business-friendly environment by relocating out of state. This trend reflects broader challenges facing the state, including high taxes, strict regulations, and rising housing costs that are driving both businesses and residents to seek opportunities elsewhere.