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KB Home Ups Community Count with Paseo Place Homes

Leading U.S. homebuilding company, KB HomeKBH announced the opening of a new community called Paseo Place in South Chandler, AZ. Paseo Place will offer homes priced in the high $200,000s.

Paseo Place will accommodate 90 single-family homes. These homes will have up to five bedrooms, two-and-a-half bathrooms and two-car garages. Homebuyers will enjoy proximity to major employment centers in downtown Phoenix, Scottsdale and Mesa. They will also get easy access to popular spots at SanTan Village and Chandler Fashion Center Mall. Moreover, the community will be served by the highly-ranked Chandler Unified School District. All homes will incorporate energy-efficient features to help residents save on their utility bills.

The latest development is in line with KB Home's strategy to increase its community count. Through the first half of 2015, the company has been focused on expanding its community count, and increasing its orders and backlogs. Since the third quarter of 2015, the company started converting its backlogs into deliveries and revenues, which is resulting in higher margins and larger economies of scale. As a result, it expects significant year-over-year earnings growth through this period.

The housing market is expected to witness a slow but steady recovery over several years driven by higher employment, a recovering economy, moderating home price gains, affordable interest/mortgage rates, rising rentals and a limited supply of inventory. KB Home is expected to reach a better position to meet the increase in demand at the housing market given its rising community count.

KB Home carries a Zacks Rank #3 (Hold).

Stocks to Consider

Investors interested in the construction sector can consider Gibraltar Industries, Inc. ROCK , Masco Corporation MAS and Lennar Corporation LEN . While Gibraltar Industries sports a Zacks Rank #1 (Strong Buy), Lennar Corporation and Masco hold a Zacks Rank #2 (Buy).

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MASCO (MAS): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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