KB Home (KBH) recently announced that it has started development work in a new community called Oakwood North in downtown Raleigh. This new community which will accommodate 39 single family homes will be opened in May.
The residents of Oakwood North will be offered two story homes with up to five bedrooms and three and a half baths. The residents will have access to shopping centers, restaurants, museums and other cultural attractions. They will also enjoy easy access to North Carolina State University, Peace College, and Saint Augustine’s College.
All the homes will offer energy efficient features and thus help residents save on their utility bills. These will also incorporate WaterSense labeled faucets and fixtures, radiant barrier roofing, low-E windows and advanced USB outlets.
Owing to its operational business model KBnxt, KB Home always begins construction only after a purchase agreement is executed. Therefore, consumers buying KB homes get the liberty to plan their homes according to their preference. Homebuyers can choose from various structural options, floor plans and lot location. Homebuyers will be guided by a personal design consultant at the local KB Home Studio to create a home that meets their unique needs and preference.
Though interest rates have started increasing lately, they are still below historical levels and housing is still affordable. Thus, high affordability levels, increased rentals and historically-low interest rates are driving the housing recovery. In addition, accelerating job growth and increasing consumer confidence are also boosting the demand for new homes. Supply, however, remains limited. The addition of new community will help KBH meet this excess demand for homes.
KB Home carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Some better ranked stocks in the homebuilding sector are William Lyon Homes (WLH), Taylor Morrison Home Corporation (TMHC) and NVR Inc. (NVR). While William Lyon and Taylor Morrison sport a Zacks Rank #1 (Strong Buy), NVR carries a Zacks Rank #2 (Buy).
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