KB Home Shares Climb as 2Q Results Top Estimates

The video discusses KB Homes' aggressive growth strategy, focusing on increasing community count and leveraging their balance sheet. It highlights the challenges of housing affordability, especially for millennials, and how home builders are adapting by offering entry-level products and reducing prices. The discussion also covers the impact of these strategies on margins and the housing market's slow growth.

What is one of the key strategies KB Homes is using to grow their community count?

• Partnering with other builders

• Using their balance sheet

• Reducing construction costs

• Increasing marketing budget

How is the California market affecting KB Homes' margins?

• It is reducing their margins

• It is causing a loss

• It is providing a margin benefit

• It has no effect on their margins

What demographic are home builders focusing on to address the affordability gap?

• Luxury home buyers

• First-time millennial buyers

• Investors

• Retirees

What is one method builders are using to make homes more affordable?

• Offering fewer bells and whistles

• Reducing the number of homes built

• Increasing home sizes

• Adding more luxury features

What is the impact of reducing home prices on builders' profit margins?

• It doubles the margins

• It has no impact on margins

• It squeezes margins

• It increases margins