Los Angeles-based KB Home late last week informed employees in New Mexico, Chicago and its Mid-Atlantic divisions that it would be closing down operations there once all communities under construction are completed.
"It's really just a result of the real estate industry right now," said Lindsay Stephenson, KB's director of corporate communications. "These are some of our smaller operations." She said the decision was made in order to better focus on markets in which there is more potential. She added that all warranties will be honored, even after KB leaves the markets.
New Mexico is the largest of the divisions to be shuttered. With approximatley 50 employees, that division has been averaging between 300 and 500 new home per year since 2004, when it did 600, according to data from the Home Builders Association of Central New Mexico that was confirmed by KB.
Chicago and the Mid-Atlantic Division, which comprises Virginia and Maryland, are smaller markets for KB, according to Stephenson. She could not provide an esimate of the number of employees affected but said that it was significantly smaller than in New Mexico. She estimated that KB currently has four active communities each in Chicago and the Mid-Atlantic regions.
The latter two markets were relatively new for KB. It had been building in New Mexico for 13 years.
Learn more about markets featured in this article: Chicago, IL.