KB Home announced the opening of Moonlight at Luna Park, a new built‑to‑order community in Irvine, California, on April 17, 2026. The Irvine development features resort‑style amenities, including an 8‑acre pool complex, fitness parks, and more than 100 miles of walking and biking trails, and it allows buyers to customize floor plans, exterior styles, and interior finishes through an on‑site design studio.
On the same day, KB Home opened The Charles in Caldwell, Idaho. The Idaho community offers contemporary homes with modern kitchens, large great rooms, and walk‑in closets, and it provides easy access to Interstate 84, Boise’s employment centers, and local parks. Like the Irvine project, The Charles gives buyers the ability to personalize their homes through the KB Home Design Studio and emphasizes ENERGY STAR certification for energy and water efficiency.
The new communities are part of KB Home’s broader strategy to shift its sales mix toward built‑to‑order (BTO) homes, which the company says generate 3‑5 percentage points higher gross margins than inventory sales. The company has been targeting build‑time reductions to 120 days and has reported a 6% year‑over‑year drop in direct construction costs, supporting the cost‑control narrative that underpins the BTO focus.
KB Home’s Q1 2026 earnings revealed a challenging environment: revenue fell 23% to $1.08 billion, and net income dropped to $33.4 million from $109.6 million a year earlier. The housing gross profit margin contracted to 15.3% from 20.2%, and SG&A rose to 12.2% of housing revenue from 11.0%. Management attributed the softness to affordability concerns, elevated mortgage rates, and geopolitical tensions stemming from the Middle East war.
Despite the revenue miss, the company highlighted its BTO momentum. Executive Chairman Jeffrey Mezger noted that the company generated year‑over‑year net order growth in the first quarter and is now achieving its targeted mix of BTO net orders. President and CEO Robert McGibney emphasized that the new community openings and build‑time improvements are expected to drive net orders and help the company reach its peak community count in the second quarter.
The market reaction to the earnings was negative, with investors focusing on the revenue miss and margin compression. The company’s capital return plan remains on track, as the additional inventory can be sold at premium pricing, enhancing cash flow and supporting ongoing share repurchases.
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