KB Home opened two new townhome communities on February 5 2026: the Veranda community in Fremont, California, and the 87th Townhomes in Marysville, Washington. Veranda offers three‑story floor plans with up to four bedrooms and three‑and‑a‑half baths, priced from the low $1 million range and located within walking distance of schools, parks, and major employers. 87th Townhomes features two‑story homes with three bedrooms, two‑and‑a‑half baths, and full‑length driveways, priced from the $570,000s and surrounded by more than two acres of parks, walking trails, and playgrounds near key transportation routes.
The openings are part of KB Home’s built‑to‑order strategy, which the company is targeting a 70% mix to improve gross margins. By concentrating on high‑demand markets such as Fremont’s Bay Area and Marysville’s growing workforce hub, the builder aims to capture premium pricing while maintaining cost discipline. The new communities also reinforce the company’s focus on personalized, high‑quality homes that differentiate it from competitors.
KB Home’s recent financial results illustrate the context for these expansions. In Q4 2025, the company delivered 9% fewer homes and saw a 7% decline in average selling price, while its gross margin fell to 17% from 20.9% in the prior year. Management guided for Q1 2026 deliveries of 2,300 to 2,500 homes and a housing gross profit margin of 15.4% to 16%, signaling margin pressure. The new communities are therefore a strategic move to offset these headwinds by tapping into markets with strong demand and higher price points.
Leadership emphasized the importance of these openings. CEO Robert McGibney, who will take office on March 1 2026, highlighted the company’s commitment to “spacious, high‑quality townhomes in high‑demand communities that deliver value to buyers and margin advantages to the company.” CFO comments underscored the focus on cost control and margin improvement as the built‑to‑order mix rises.
The Fremont location benefits from proximity to schools, parks, and major employers, while Marysville offers extensive parkland and easy access to transportation routes—factors that support sustained demand. These attributes align with KB Home’s strategy to build in markets where buyers are willing to pay a premium for convenience and quality.
The openings signal KB Home’s continued expansion in key markets while navigating a challenging housing environment. By increasing its built‑to‑order mix and targeting high‑demand locations, the company aims to strengthen its margin profile and sustain growth in a market that has seen declining sales and pricing pressure.
KB Home also declared a quarterly cash dividend of $0.25 per share, payable on February 19 2026 to shareholders of record on February 5 2026, reflecting the company’s ongoing commitment to returning value to investors.
KB Home’s leadership remains focused on executing its built‑to‑order strategy, managing cost pressures, and expanding into markets that support higher pricing and margin potential. The new communities represent a tangible step toward achieving these objectives.
KB Home’s expansion into Fremont and Marysville underscores its strategic shift toward high‑margin, high‑demand markets, positioning the company to better navigate the current housing cycle and support future earnings growth.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.