KB Home Relocates Headquarters to Arizona Amid Growing Corporate Exodus from California
Los Angeles, Sunday, 12 April 2026.
Seeking lower costs, KB Home will move its Los Angeles headquarters to Tempe by Spring 2027, joining 31 other major corporations recently shifting operations to the Phoenix area.
Strategic Drivers Behind the Relocation
The decision to leave Los Angeles after 69 years is rooted in a strategy to reduce the company’s long-term cost structure and capitalize on Arizona’s favorable business climate [1][2][4]. KB Home’s Chief Executive Officer, Robert McGibney, stated that the move positions the homebuilder to operate more effectively and supports its future growth phases [1]. Additionally, lower regional housing costs in Arizona present a more sustainable economic environment for the company’s workforce compared to the notoriously expensive California market [4]. Jim Daniel, president of RL Brown Housing Reports, noted the increasing difficulty of building homes in California as a contributing factor to the industry’s outward migration [1].
The Broader Corporate Migration Trend
KB Home’s departure is part of a well-documented exodus of major corporations from California to lower-cost states [1]. The homebuilder joins a growing list of industry giants—including Oracle, Tesla, SpaceX, Chevron, and Neutrogena—that have relocated their headquarters in recent years [1]. Real estate firm CBRE similarly moved its own headquarters from Los Angeles to Dallas in 2020 [1]. A 2025 study by CBRE ranked the Phoenix metropolitan area fourth in the United States for attracting corporate headquarters, noting that 31 major companies relocated there over a 6-year period between 2018 and 2024 [1]. Within its own sector, KB Home will join other major homebuilders like Taylor Morrison, which also maintains its corporate headquarters in the Phoenix metro area [3].