""When the supply chain crashed [during the pandemic] and our build times significantly extended, it was very difficult to sell a built-to-order home to a buyer when it was going to take 10 or 11 months to build... You can't lock the interest rate for that long," Mezger tells . So they did more spec. That's over now. "We've significantly compressed our build times... We're back down to four months or less, which is our historical level," Mezger tells ResiClub."
""For years and years, [built-to-order] was 70% to 80% of our business," Mezger noted. "In the fourth quarter, deliveries were around 50% BTO."In late January 2026, ResiClub interviewed KB Home CEO Jeffrey Mezger and COO Rob McGibney. Beginning March 1, 2026, McGibney will assume the CEO role, with Mezger-who has served as CEO since 2006-moving into the newly created position of executive chairman."
KB Home is intentionally shifting away from elevated speculative inventory toward built-to-order (BTO) homes to help firm up compressing margins. Pandemic-era supply chain disruptions extended build times to 10–11 months, which made selling BTO homes difficult and prompted a move to more speculative builds. KB Home has significantly compressed build times back to four months or less, restoring historical cycle times and enabling a return to higher-margin BTO production. Historically BTO represented 70%–80% of business; fourth-quarter deliveries were around 50% BTO. Florida operations showed localized stabilization after price reductions. Leadership will transition March 1, 2026.
Read at Fast Company
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