Another billion-dollar business is ditching California.
KB Home announced it’s packing up its Los Angeles headquarters and heading to Tempe, Arizona — the latest corporate exit from the Golden State.
The move to the Phoenix suburb is set to kick off in spring 2027, with the company planting its flag at Hayden Ferry Lakeside near Tempe Town Lake — just minutes from the airport and smack in the middle of the booming Valley.
Company brass say the shift isn’t just about swapping zip codes — it’s about cutting costs and boosting teamwork
“This move brings our teams together in a more collaborative environment, and Phoenix is the right place to do it,” said CEO Robert McGibney.
The move is also very much about the money.
The Phoenix area is far cheaper than Los Angeles, where sky-high home prices can run hundreds of thousands more. That massive gap has fueled a steady stream of residents — and now corporations — fleeing California for Arizona.
KB Home also pointed to Arizona’s business-friendly climate as a key reason for the relocation.
The builder isn’t exactly a small player in California. It still has major developments stretching from San Diego and Riverside counties all the way up to the Bay Area and Sacramento.
Still, it joins a growing list of companies heading for the exits.
Realtor.com, Public Storage and Yamaha Motor Corporation have all expressed plans to move operations out of California — a trend that’s raising fresh questions about the state’s business climate.