Yet another billion-dollar company is leaving California.
KB Home has revealed plans to relocate its headquarters from Los Angeles to Tempe, Arizona, marking the latest corporate departure from the Golden State.
This move to a Phoenix suburb is scheduled to begin in spring 2027. The company plans to establish itself at Hayden Ferry Lakeside near Tempe Town Lake, conveniently close to the airport and situated in the thriving Valley area.
According to company officials, the decision is not just about changing locations but is aimed at reducing expenses and enhancing collaboration.
“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 financial aspect is also a significant factor in this decision.
The cost of living in the Phoenix area is considerably lower than in Los Angeles, where home prices can be hundreds of thousands higher. This substantial difference has driven both residents and businesses to leave California in favor of Arizona.
KB Home also cited Arizona’s favorable business environment as a crucial reason for the move.
Despite its departure, the company remains a significant player in California, with major developments spanning from San Diego and Riverside counties to the Bay Area and Sacramento.
However, KB Home is joining a growing trend of companies exiting the state.
Realtor.com, Public Storage, and Yamaha Motor Corporation have all indicated plans to move their operations out of California, raising new concerns about the state’s business climate.
