KB Home (KBH) risk factors, FY2024 10-K

KB Home's FY2024 10-K, filed Jan 24, 2025, lists 15 risk factors. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
150 groups
Section length
8k wordsItem 1A

KB Home's biggest risks in the FY2024 10-K

  • KB Home faces heavy exposure to consumer demand risks, mortgage availability, and supply chain cost inflation.
  • First-time and move-up buyers are vulnerable to elevated interest rates, labor shortages, and land inventory valuation drops.

The risks most specific to KB Home

  • Consumer Demand Risks. The following could negatively affect consumer demand for our products, thereby unfavorably

    Sustained elevated mortgage interest rates, inflation, and soft economic conditions could negatively impact net orders, average selling prices, and overall profitability.

  • our ability to sell homes at the same volume, prices and margins as in prior periods

    Slower employment and wage growth in 2025 could severely affect our core first-time and first move-up homebuyer demographic.

  • concessions like those described above to stimulate net orders, adversely affecting our revenues and margins

    Tightened availability or affordability of mortgage loans and homeowner insurance coverage could cause buyers to cancel contracts.

  • or decide not to pursue purchasing a home or may cancel a home sales contract with us

    We depend on third-party partner GR Alliance Ventures in KBHS to provide mortgage loans, unlike competitors with wholly-owned mortgage lenders.

  • the same degree as in the past

    Elevated inflation has increased our land, construction, warranty repair, and talent compensation costs.

  • and sell homes on such land

    Labor shortages, supply chain constraints, and municipal delays can disrupt our network of suppliers and trade partners.

  • inventory assets, which we refer to as “project financing.” However, outside financing may be unavailable, costly and/

    Tight capital markets or credit rating downgrades could hinder our ability to obtain external financing or use our Credit Facility.

  • region during the year and beyond

    Federal import tariffs and retaliatory measures from other countries could raise the cost and reduce the supply of home construction items.

  • or recalls occur, our costs and supply chain disruptions, as described above, could increase further

    Independent contractors perform essentially all our construction work, and we lack control over their availability, work methods, and defect insurance coverage.

  • defect claims, and they or their insurers may not be able to cover the associated repair costs

    California regulations might impose responsibility upon us as direct contractors for unpaid wages and benefits of subcontractor employees.

All 15 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01Consumer Demand Risks. The following could negatively affect consumer demand for our products, thereby unfavorably
  2. 02our ability to sell homes at the same volume, prices and margins as in prior periods
  3. 03particularly affected, impacting us more severely than homebuilders targeting a different buyer demographic
  4. 04among other things, birth rate changes, economic factors or U.S. immigration policies
  5. 05concessions like those described above to stimulate net orders, adversely affecting our revenues and margins
  6. 06or decide not to pursue purchasing a home or may cancel a home sales contract with us
  7. 07demand or allow for higher selling prices for homes generally or for the homes we sell
  8. 08the same degree as in the past
  9. 09and sell homes on such land
  10. 10inventory assets, which we refer to as “project financing.” However, outside financing may be unavailable, costly and/
  11. 11favorable terms or at all
  12. 12senior notes due June 15, 2027 (“6.875% Senior Notes due 2027”)
  13. 13region during the year and beyond
  14. 14or recalls occur, our costs and supply chain disruptions, as described above, could increase further
  15. 15defect claims, and they or their insurers may not be able to cover the associated repair costs

Other KB Home 10-Ks

  • FY2025 10-K risk factors
    16 risks6 new5 dropped8 reworded

    KB Home highlights risks from cooling labor markets, rising resale and rental inventory, and federal government funding disruptions.

    Filed Jan 23, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.