KB Home is facing challenges in Florida's housing market, necessitating substantial price reductions exceeding $30,000 to drive sales. In the first quarter of 2025, Florida emerged as the builder's weakest market, with Jacksonville particularly impacted by high inventory levels and muted demand. CEO Jeffrey Mezger noted that adjustments made in February to enhance affordability were positively received by buyers. The overall average selling price for KB Home was anticipated to decrease from the previous year, reflecting the ongoing struggle to stimulate demand in a softening market.
"In broad terms, Florida was our softest state in terms of sales demand in the first quarter," McGibney said. "Because of that, we took the most pricing action there to find the market."
Jeffrey Mezger, CEO of KB Home, wrote in the company's earnings report that demand at the start of the year was more "muted" than usual.
In mid-February, KB Home took steps to address the weak demand by offering "the most compelling value, and buyers responded favorably to these adjustments," Mezger wrote.
Jacksonville has more than seven months' worth of unsold homes piled up on the market, prompting KB Home to slash prices even more.
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