Insight
KB Home executives state built-to-order homes typically result in gross margins 300 to 500 basis points higher than spec homes.
KB Home bets on built-to-order strategy amid a spec-heavy market
Summary
KB Home is shifting its focus to a built-to-order (BTO) strategy, aiming for higher margins in a challenging market. Hosts should pay attention to this trend as it may impact competition and pricing in their local markets, especially if private builders react to the changes.
Key takeaway