KB Home CEO outlines personalization push to lure first-time homebuyers

Rob McGibney assumed the role of CEO at KB Home on March 1 and soon faced a sharp contraction in the company's financials, with revenue falling by more than 20% year over year and net income plunging by around 70%. In response, he is shifting the business toward a higher proportion of built-to-order homes, which now account for roughly three-quarters of net orders, up from just over half a year earlier. This model lets buyers select features they truly value, potentially reducing cancellations and discount demands, though it may extend construction timelines.

McGibney is also targeting first-time buyers, whose average age has risen to 40, by highlighting the appeal of customization that resonates with younger, tech-savvy consumers. He notes that many of these buyers now earn about $140,000, have strong credit scores, and can afford sizable down payments, yet broader affordability constraints remain beyond the company's control. The strategy centers on offering more flexible, personalized options while managing costs in a market pressured by high borrowing rates and construction expenses.