KB Home : 2025 Executive Summary of Sustainability Report 2025, PDF file,
KBH
Published on 04/22/2026 at 08:24 am EDT
Executive Summary
SUSTAINING THE
American Dream
Inspirada in Henderson, NV
In this Executive Summary of our 19th Annual Sustainability Report, we share our sustainability results, why they are important, how we achieve them, and the difference they make in people's lives.
Executive Letter
2025 Key Results
Our Why
Business Benefits
5
High-Performance Homes
Energy Efficiency
Water Efficiency
Healthier Home
9
Power of Homeownership
Sustaining the American Dream
For over two decades, KB Home has focused on delivering long-term value by building homes that are both attainable to purchase and less expensive to own. We believe that sustainability plays a critical role in this approach. Building sustainable homes and expanding access to homeownership are not competing priorities. They are one and the same.
Affordability remains one of the most pressing concerns for homebuyers. That is why KB Home has long focused on delivering homes within reach of households earning around the local area median income in the markets we serve. While rising costs have made that goal harder to achieve across all communities, it continues to guide our approach. We make disciplined decisions at every stage - land acquisition, community development, home
construction and pricing - to deliver the best value for our buyers. Our distinctive Built to Order® model reinforces that mission: homes are designed to fit each buyer's lifestyle and budget, so customers pay only for the features they value. And because our high-performance homes reduce energy and water costs and lower maintenance over time compared to typical resale homes, they deliver a meaningfully lower total cost of ownership.
Jeffrey Mezger
KB Home
Executive Chairman of the Board
Our results reflect this commitment at scale:
Building High-Performance Homes: We have delivered over 217,000 ENERGY STAR® certified homes and 31,000 WaterSense® labeled and Water Smart homes, more than any other homebuilder in the nation. In 2025, our national average Home Energy Rating System® (HERS) Index score was 43,
one of the lowest among national homebuilders.
Making Lasting Positive Impact: Cumulatively, our homes have helped homeowners save an estimated $1.3 billion
in utility bills since 2000. These homes also conserve approximately 2.3 billion gallons of water annually.
Earning Customer Trust: In 2025, we continued to be one of the top customer-ranked national homebuilders based on a leading independent homebuilding review site. Our 96% satisfaction rate, the highest in our history, reflects our team's relentless focus on building homes of exceptional value and delivering a superior customer experience.
These results represent a durable path toward homeownership that might otherwise be unattainable, enabling families to proudly set down roots in a home tailored for them, keep more of their income and invest in strengthening the communities in which they live.
Yet even a home built for efficiency and affordability can be put out of reach by forces beyond the front door. Along with rising land and
construction costs, wildfire risk-and the insurance premiums it drives-is eroding the very affordability we work so hard to deliver. That is why
we are leading pilots of rigorous wildfire-resilient design standards in California, using fire-resistant materials and advanced construction practices to help protect homeowners, strengthen communities, and support potential insurance savings.
Since our founding in 1957, expanding access to the American Dream has been our purpose. Our approach is straightforward: take what works, build the case with local stakeholders, and scale it to where homeowners need it most. We continue to innovate, creating lasting value for the customers and communities we serve through attainable, sustainable, and resilient homes. That is the commitment we carry forward.
Robert McGibney
KB Home President and
Chief Executive Officer
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2025 RESULTS
2025 KEY RESULTS
For KB Home,
50%
are first-time homebuyers
12,902
new KB homeowners in 2025
measurable value
2025 marked a successful year of delivering
to homeowners
national average Home Energy Rating
System® (HERS) Index score, achieved a year ahead of the goal we set in 2020
43
57%
4,300+
~110K 3,393
This year, we achieved new milestones in high-performance building,
2
average increased energy efficiency
of a 2025 KB home vs. a typical home built as recently as 2006
WaterSense labeled homes built in 2025
WaterSense labeled fixtures installed in 2025
solar-powered new homes built in 2025
further strengthening our position as the industry's longtime leader in sustainability.
19
years of publicly reporting our sustainability results
$1.3B
cumulative utility savings for our customers
2.3B
estimated total gallons of water saved annually
31,000+
total WaterSense labeled and Water Smart homes built since 2005
8.8B
estimated cumulative pounds of CO2 emissions avoided due to improved energy efficiency
178M
estimated kilowatt hours of renewable solar energy produced annually
114
estimated megawatts of solar power installed since 2010
29,000+
solar-powered new homes built since 2010
total ENERGY STAR certified homes
built since 2000, more than any other homebuilder
217,000+
CUMULATIVE RESULTS
OUR WHY IS SIMPLE
Lasting value at different scales
2.3B gallons of water conserved annually by WaterSense labeled homes and fixtures
Lower crime rate and higher civic participation*
Strong governance and transparency support stockholder trust and
long-term value delivery
40x higher average household wealth*
KB Home's sustainability strategy is not an isolated environmental initiative. We believe it positively contributes to the health of a broader ecosystem, as our highly
efficient homes provide measurable financial benefits to their owners and support community resilience, regional resource conservation and wider economic strength.
When thousands of homes use less energy and water, the benefits compound: power grids face less strain, water resources stretch further, and communities become more robust. We believe that doing well by our customers and doing right by the environment are not separate goals. They are the same goal, measured at different scales.
Reduced strain on power grid and infrastructure
Enhanced indoor air quality
High-performance ventilation
Enhanced moisture control
Antimicrobial door hardware
Upgraded insulation
Radiant barrier
High-efficiency HVAC
ENERGY STAR certified appliances
Contribute to local infrastructure, schools, roads, etc.
Homeownership as a pathway to
generational wealth
Foster social connection and support community ties
Storm water pollution prevention
Drought-tolerant landscaping and/or efficient irrigation
Estimated average savings of $1,900 annually on utility bills compared
to a typical resale home
Construction site recycling and waste reduction
Smart thermostats capable of demand-response services
Spacious, efficient design
Materials waste reduction
Biodiversity and natural resource preservation
WaterSense labeled fixtures
High efficiency plumbing design for improved hot water delivery
Partner with local governments to meet long-term needs of residents
Strengthen local communities with monetary donations and 6,200 volunteer hours in 2025
Resilience during extreme weather events
4 full-time jobs created for a year for every new home built*
Home benefits Community benefits Regional benefits
Greater economic and environmental benefits
Density and community design aligns with land use
Quieter, more comfortable neighborhoods
Provide meaningful work to over 2,100 employees and thousands of trade partners
Increased property tax revenue for local
communities
Long-term water security in drought-prone areas
217K+ ENERGY STAR certified new homes built
$1.3B in total estimated utility bill reductions
8.8B estimated cumulative pounds of CO2 emissions avoided
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*Data sources can be found on page 28 of our full 2025 Sustainability Report, in footnotes number 2, 6, and 9.
Expanding attainable homeownership
We design and build homes that help address
the significant need for housing that is affordable.
Lowering the total
cost of homeownership
Sustainability can be a compelling competitive advantage because energy- and water-efficient homes can offer a lower operating cost compared to typical new or resale homes.
Integrating sustainability technology for increased safety and comfort
Sustainability-related technologies can offer greater comfort and efficiency, with user-friendly smart home interfaces.
Preserving the environment and natural resources for long-term value
More sustainable homebuilding that emits fewer greenhouse gases (GHGs) is part of a business strategy for long-term value creation for our stakeholders.
Elevating water conservation
The water-saving features in our homes reduce our customers' water bills and help to mitigate strain on local communities.
Becoming the builder of choice for partners
We believe our industry leadership and commitment
to excellence make us a partner of choice for municipalities, land sellers, developers and other partners.
Containing the cost to build
Our scale and waste-reduction efforts allow us to build sustainable homes more economically.
Improving strength of supply chain
We select our partners in part based on their sustainable business practices, innovative products and processes, and commitment to ethical conduct.
Designing homes to be healthier for residents
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We design homes that can promote the health of their residents as well as the environment.
Becoming an employer of choice
We strive to create a culture of excellence and provide a safe work environment that supports inclusion and meaningful work.
BUSINESS BENEFITS
Sustainability is not just the right thing to do -
it is also right for our business.
We believe sustainability is built on balance: helping today's homebuyers achieve the dream of homeownership while preserving that opportunity for future generations.
This focus delivers long-term benefits for our customers, strengthens our operations, and makes us a more resilient business.
HIGH-PERFORMANCE HOMES Our homes are built from the ground up to deliver exceptional energy and water performance, conserving
A high-performance KB home ranks in the top 12% of all
U.S. new homes for energy and water efficiency
resources, saving money, and supporting comfortable, healthy living. In practice, this means three core elements working together:
What we do
Benefits
Energy efficiency
We build homes that use significantly less energy than a typical new home, targeting low HERS scores through a tighter building envelope,
high-performance windows, properly sized HVAC equipment, and efficient appliances. Every home is independently tested and verified.
Potentially lower monthly energy bills and real long-term savings, plus the everyday comfort of consistent temperatures year-round.
Water efficiency
We design every home to use water wisely, inside and out. This includes WaterSense-labeled fixtures,
efficient plumbing systems that deliver hot water faster with less waste, and water-smart landscaping
as part of a whole-home water strategy.
Meaningful reductions in water use and utility costs, year after year, without compromising comfort or curb appeal.
Healthier indoor air
We select low-VOC building products, apply effective air sealing, and use ventilation and air-conditioning systems designed to minimize pollutants, deliver fresh filtered air, and control moisture.
The peace of mind knowing that the air inside every KB home is cleaner and fresher than in most homes without such features, supporting the long-term health and well-being of the families who live there.
These three elements are the product of a whole-home approach to building, grounded in rigorous building science, quality construction, and third-party verification; where decisions about the envelope, mechanical systems, and materials reinforce one another. Together, they produce homes that cost less to operate, require less maintenance, and deliver a healthier, more comfortable environment than standard or older homes. Where appropriate, KB Home goes further, adding resilience and home-hardening measures to help preserve long-term value and protect occupants against climate-related risk. See page 25 of our full 2025 Sustainability Report for more details.
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Entrada Del Pueblo at Rancho Sahuarita in Sahuarita, AZ
ENERGY EFFICIENCY
A home's energy performance shapes what a family pays every month for as long as they own it. At KB Home, we treat energy efficiency not as a compliance target but as a core design
discipline, one that compounds the value for the families in our homes.
The HERS Index, developed by the Residential Energy Services Network (RESNET), is the nationally recognized standard for measuring a home's energy performance, where a lower score means a more efficient home. We use HERS scores to set targets, track progress, and give buyers a single credible number for easy comparison against any other home.
Our homes consistently outperform the national average for energy efficiency. With a 2025 average HERS Index score of 43, one of the lowest among national homebuilders, KB Home customers can have meaningfully lower energy bills from day one.
KB Home was the first national
homebuilder to be designated a RESNET Energy Smart Builder.
Introduced in 2011 and inspired by the miles per gallon (MPG) sticker in the auto industry, our Energy Savings Comparison® (ESC®) displays each home's HERS score alongside projected energy utility bill savings. Available in every model home and on our website, it gives buyers the information they need to compare new and resale homes, understand the true cost of ownership, and recognize the long-term potential value of an energy-efficient home.
6
30
20
10
130
Typical resale home
43
Average KB home HERS score in 2025,
two points better than the 2025 target we set in 2020
Our 2025 national average HERS score of 43 represents:
57%
built as recently as 2006 10%
greater efficiency
than a typical home
more efficient than the
average score of 53 for all U.S. HERS-rated homes built in 2025
40
50
60
70
80
90
100
110
120
130
140
Lower Energy Use & GHG Emissions
Higher Energy Use & GHG Emissions
Home Energy Rating System (HERS) Index
The lower the score, the better the energy performance and the fewer GHG emissions are generated from the operation of the home.
WATER EFFICIENCY
A WaterSense labeled new home is designed to reduce water consumption without impacting quality or comfort.
Many regions of the United States, particularly the West Coast and Southwest, where much of our work is concentrated, are experiencing more frequent and severe drought. Building highly water-efficient homes helps preserve this
vital resource while lowering utility costs for our homeowners.
31,000+
1.3M+
2.3B
61
WaterSense labeled and Water Smart homes built - more than any other homebuilder
WaterSense labeled fixtures installed in all KB homes built since 2009
estimated gallons of water conserved annually by our WaterSense labeled homes and the 1.3+ million WaterSense labeled fixtures
average HERS H2O score in 2025 (Arizona, California and Nevada only)
Imagine setting 2.3 billion 1-gallon water jugs side-by-side on the ground.
That massive line would wrap all the way around the Earth's equator almost 9 times. To put that in perspective, that same amount of water is enough to supply a city
of 76,000 people for an entire year!
7
Water conservation as a business advantage:
We consider access to water a fundamental human right. We took an early lead in water-efficient homebuilding and have sustained that leadership for two decades. We built our first Water Smart home in 2005, adopted
WaterSense labeled fixtures company wide in 2009, and delivered the nation's first WaterSense labeled home in 2010. In 2022, we made an industry-first commitment to build all future communities in Arizona, California, and Nevada to the EPA's highest water-efficiency standard, WaterSense labeled homes. This experience enables KB Home to support local governments and stakeholders who are working to advance sustainable growth in water-stressed regions.
Impact for homeowners and communities:
Compared to a typical home, our water-efficient homes use 20% to 30% less water, while our WaterSense labeled homes achieve even greater savings of 30% to 40%, depending on the region. This results in lower utility bills and helps homeowners reduce the impact of water rate increases that are outpacing the Consumer Price Index (CPI). Water smart landscaping enhances neighborhood curb appeal and strengthens resilience against drought. It also helps conserve shared water resources and supports long-term community sustainability.
Protection from the elements, with moisture control and sealing to prevent water damage, as well as radiant barriers to maintain comfortable interiors
High-performance ventilation with MERV 13 rated filters that capture 90% of airborne particles and remove dust, pollen, mold and certain bacteria and viruses
HEALTHIER HOME
Pest-resistant construction details that reduce the need for chemical treatments inside the home
WaterSense fixtures throughout, including faucets, showerheads, and toilets that use significantly less water without compromising performance or comfort
Healthier lighting design, including abundant natural light and high-CRI LEDs that mimic daylight and help residents feel and look their best
Comprehensive air sealing to help reduce drafts, moisture, dust and pollen
A home is more than a structure; it is often the core of personal wellness and social connection, a place where we can rest and recharge.
High-efficiency heating and cooling systems designed to provide an elevated level of comfort throughout every season
A high-performance home is not just efficient - it is healthy. KB Home designs every home to support a superior indoor environment: one that is properly ventilated, designed to reduce exposure to common indoor pollutants, thermally consistent, and comfortable year-round. These are not just background features; they meaningfully affect the daily lives and well-being of the families who live there.
Our approach to indoor health is aligned with the EPA Indoor airPLUS framework and addresses air quality, moisture control, pest-resistant construction, and thermal comfort. The features shown here work together,
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so regardless of what is happening outdoors, the environment inside a KB home stays clean, comfortable, and consistent.
Enhanced indoor air quality guided by EPA's ENERGY STAR and Indoor airPLUS standards, which help to reduce indoor air pollutants
Low-VOC paint and carpeting that contribute to improved indoor air quality and are better for people with allergies and chemical sensitivities
Smart thermostats that can learn homeowner patterns and provide both comfort and energy efficiency
Reduced spread of germs, with all interior and exterior door hardware featuring antimicrobial protection that inhibits bacteria, mold and mildew
Our customers are as varied as the communities where we build
We believe that building quality homes at prices people can afford naturally draws buyers from every corner of American life.
We are proud that in 2025 we continued to keep homeownership, and its potential to build household wealth and financial stability within reach of people across a broad range of incomes, occupations, and communities nationwide. Our diverse customers share a common desire to own a personalized, high-performance home at a price that made sense for their household.
35%
White/Caucasian
28%
Hispanic/Latino
3%
Other
2025
Customer Demographics
11%
23%
Asian
Black/African American
Source: KB Home: FY 2025 buyer profile data based on gross sales; buyer experience data from KBIT buyer database and based on deliveries
* For homebuyers who elected to finance the purchase of their home through KBHS Home Loans, LLC.
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In the 2024 Sustainability Report, the figure was incorrectly labeled as median income; it reflects average income.
3,000+
of our deliveries in 2025 were to new homeowners that serve as firefighters, nurses, teachers, and police, working every day to strengthen our local
communities and our country.
$132,000
was the average household income of KB homebuyers in 2025.*
Our employees are the foundation of every customer experience we deliver.
We strive to bring the same strong commitment to quality in our workplace as we do in our homes. Our employees plan, manage and execute every aspect of what we build, working alongside trade partners and suppliers to bring each home to
life. We also believe that a workforce reflecting the diversity of our customers and communities makes us better at serving their needs, and we foster our culture with that in mind.
2,118
7.65 years
12.4 years
294
full-time employees as
of November 30, 2025
average employee tenure
company-wide
average tenure of managerial-level leaders
of hires in the last five years,
or 10%, have been rehires who have chosen to return to KB Home
We have built the kind of company that attracts talented professionals and gives them every reason to stay and grow. We create clear paths for growth, supported by mentoring, structured performance reviews, and a culture where advancement is based on performance and results. Over the past two years, almost 70 employees have advanced into management-level positions and above.
Our average managerial tenure reflects the stability that kind of investment produces.
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The result is a workforce that is experienced, stable and deeply connected to our mission.
Boise
Volunteered at Ronald McDonald House® to prepare lunch and dinner for families of children receiving treatment at the local hospital.
We are helping to strengthen communities across America
Sacramento
Adopted two cabins through HomeAid® Sacramento's Adopt a Cabin Program for unhoused youth to live in while they transition into the community.
Our KB Cares philanthropic program puts our ideals into action with financial donations and employee volunteer hours that help make
Dallas
Worked with Girls Inc., a program inspiring girls to reach their full potential through mentorships, workshops and a Shark Tank-style challenge.
Raleigh/Durham
Supported the Cancer Shucks Foundation by participating in the annual Catching Fireflies 5k Run, which raises funds for community members diagnosed with cancer.
L.A./Ventura Counties Provided immediate relief and supplies to residents who tragically
lost their homes in the Eaton Fire.
Tucson
Partnered with Habitat for Humanity® to help complete work on homes under construction for local recipients.
South Bay
Volunteered at Second Harvest of Silicon Valley to bag and distribute food for local families in need.
a difference in the communities where we build, live and work.
Charlotte
Volunteered with Wreaths Across America to place wreaths on veterans' graves in a local military cemetery to honor their memory.
Denver
Helped serve meals at Denver Rescue Mission to support the most vulnerable community members
in the greater Denver area.
North Bay
Volunteered at Harvest Home Animal Sanctuary to paint, rebuild and clean animal shelters throughout the facility.
Seattle
Worked with Dash Point State Park for a clean-up event to remove brush, garbage and various debris from the park trails.
around the nation
KB Cares events in 2025
total hours volunteered by KB Home employees in 2025, in collaboration with trade partners.
Corporate
Prepared meals at the Westside Food Bank Virginia Avenue Park Pantry, providing emergency food assistance to over 200 families.
Orlando
Collected new travel bags for Bags of Hope to distribute to underprivileged children and teens, many from foster care who are in the process of being adopted.
Coastal
Supported the San Diego chapter of Habitat for Humanity to build two playhouses for children in need of a magical space to play.
Phoenix
Partnered with Soldiers' Angels to collect hundreds of pairs of socks for active-duty service members and veterans for their Warm Feet for Warriors campaign.
Jacksonville
Partnered with City Rescue Mission to landscape and maintain their facility, serve the residents food
and donate essential supplies.
Houston
Worked with the City of Houston's BARC Animal Shelter to help clean the facilities, donate items and care for animals trying to find their forever home.
Austin
Partnered with the Center for Child Protection and participated in their annual golf tournament to raise funds to provide critical services for children.
San Antonio
Worked with Project Cool to collect fans to distribute to senior citizens and disabled
individuals to prevent heat-related illnesses during high temperatures.
Inland Empire
Volunteered at Western Eagle Foundation, the largest food and goods warehouse
in Southern California to support food distribution programs for families in need.
Las Vegas
Volunteered at Three Square™ to pack lunches for children experiencing food insecurity across Southern Nevada.
Tampa
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Partnered with Tampa Bay Builders Association for National CleanUp Day to remove garbage and debris at Ben T. Davis Beach.
We are honored to be recognized for our consistent leadership
and commitment
KB Home's focus on leading management and employment practices has garnered national attention. Our commitment to energy-efficient and water-saving features, along with healthier indoor living spaces, has also earned the company widespread public recognition.
TOP AWARDS
Newsweek®'s America's Most Responsible Companies list - 2021, 2022, 2023, 2024, 2025 Highest-ranked national homebuilder on the list and the only one to receive this distinction five years in a row.
TIME and Statista's America's Best Midsize Companies list - 2024, 2025
Only homebuilder to make the list every year since its inception.
Newsweek's America's Greenest Companies list - 2025
One of a select group of U.S. companies recognized for leading the way in environmental sustainability.
USA TODAY's America's Climate Leaders list - 2023, 2024, 2025
Awarded for three consecutive years.
Notable past awards and recognition
Excellence in Resiliency - 2023
Zero Energy Ready Home winner - 2013, 2014, 2015, 2023
Builders Challenge Award - 2011, 2013
Trenton Heights in Santa Clarita, CA
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This Executive Summary is intended to present key highlights for our 2025 results. For additional information on the topics presented here, as well as additional sustainability and resiliency topics, full current and historical data tables, and measurement against key sustainability standards, see the full report at:
2025 Sustainability Report
For more information on our sustainability initiatives, visit: https://www.kbhome.com/sustainability
We welcome your feedback about this report and our sustainability initiatives at:
10990 Wilshire Blvd., 7th Fl., Los Angeles, CA 90024
888-KB-HOMES • kbhome.com
Report purpose and structure
This is an Executive Summary of our 19th Annual Sustainability Report, which follows our most recent report published in April 2025. In the accompanying report, we discuss our accomplishments in 2025 and our priorities moving forward. With this Executive Summary and the accompanying full Sustainability Report, we also seek to foster continued discussion and engagement with all of our stakeholders on the complex issues surrounding sustainability for long-term value creation. All information provided in this Executive Summary and the accompanying full Sustainability Report is for our fiscal year ended November 30, 2025, unless otherwise noted. Inquiries regarding our sustainability initiatives can be directed to [email protected].
Advisory Note
Certain matters discussed in this Executive Summary, including any statements that are predictive in nature or concern future performance, or our future initiatives or actions and their expected results, are forward-looking statements and/or reflect aspirational goals. These statements are based on current expectations, hopes and projections about future events and are not guarantees of future performance. We do not have a specific policy or intent of updating or revising forward-looking statements. Actual events and results may differ materially from those expressed or forecasted in forward-looking or aspirational statements due to a number of factors, including, but not limited to: general economic and business conditions; government actions and regulations directed at or affecting the housing market, the homebuilding industry, the mortgage finance industry or construction activities; consumer interest in our new-home communities and products; our ability to execute on our sustainability and other business plans or initiatives within the timeframes and at the cost, revenues or margins that we expect; the pace, scale, trajectory and affordability of technologies that can generally address, or specifically enable us to address, climate change and any negative effects from it; and other events outside of our control. Please see our periodic reports and other filings with the U.S. Securities and Exchange Commission (SEC) for a further discussion of these and other risks and uncertainties applicable to our business and our sustainability initiatives. In addition, the inclusion of information, or the manner in which it is described herein, in this report should not be construed as a characterization regarding the materiality or financial impact of that information, nor considered incorporated into any of our SEC filings unless and to the extent expressly stated in such filings.
Disclaimer
KB Home published this content on April 22, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 22, 2026 at 12:23 UTC.