Los Angeles-based KB Home will relocate its corporate headquarters to Tempe, Arizona, by spring 2027 – the latest in a series of corporate exits from California to the Phoenix metro market.
The home builder will relocate from its current headquarters on the Westside of Los Angeles to Hayden Ferry Lakeside, an office park at 80 East Rio Salado Parkway in the Phoenix suburb of Tempe,, consolidating executive leadership and key corporate functions in a more cost-efficient place, website L.A. Business First reported. KB Home said in a statement the move is designed to lower its cost structure and leverage Arizona’s business-friendly environment to enhance long-term profitability.
“It positions KB Home to operate more effectively and supports the next phase of our growth,” CEO Robert McGibney said in a statement. “Phoenix is the right place to do it.”
Industry analysts view the relocation as part of a broader trend. Jim Daniel, president of RL Brown Housing Reports, noted that while KB Home will retain a strong California presence, “it’s become more difficult to build a house there.”
Jim Belfiore, CEO of Belfiore Analytics, added that Arizona’s affordability and robust homebuilding market make it increasingly attractive to West Coast builders, predicting more such moves in coming years.
Phoenix has emerged as a national hub for corporate headquarters. A 2025 CBRE study ranked the metro market No. 4 in the U.S., tied with Houston, for attracting 31 corporate headquarters between 2018 and 2024. KB Home’s decision makes sense in this context, with lower costs and operational flexibility.
The company joins a parade of large corporations leaving California, including Oracle, Tesla, SpaceX, Chevron and Neutrogena. In real estate, brokerage CBRE relocated from L.A. to Dallas in 2020.
KB Home was founded in 1957 by Bruce Kaufman and Eli Broad, with the latter figure emerging as a major civic leader and philanthropist in Los Angeles. Broad died in 2021.
The firm has built more than 700,000 homes nationwide, including 100 projects in California, according to the company. It also had a major impact on the development of housing in Las Vegas and Phoenix.
The publicly traded company employs more than 2,100 people and operates in 49 markets. It has maintained a presence in Arizona since the early 1960s. KB Home will continue to operate six divisions in California.
– Joel Russell
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