When it comes to buying a newly constructed home, LGI Homes and KB Home are two of the biggest national homebuilders to consider.
Both companies have been building homes for decades, offer homes across multiple states, and provide a variety of floor plans and amenities.
However, there are some key differences between LGI Homes and KB Home that homebuyers should be aware of.
A Brief Comparison Table
| Category | LGI Homes | KB Home |
| Year Founded | 2003 | 1957 |
| # of Homes Built Annually | 18,000+ | 30,000+ |
| Presence | 18+ states, mostly southern/western | 8 states, western concentrate |
| Home Types | Single-family | Single-family, townhomes, condos |
| Home Prices | $150k – $350k | Low $200k – $1M+ |
| Construction Method | Builds homes on speculation before sale | Builds after purchase contract |
| Customization | Minimal options offered | Wide selection of options available |
| Energy Efficient Features | Standard in all homes | Optional upgrades available |
| Customer Service Reputation | Mixed | Mixed |
| Resale Value | 97.5% original price (2021) | 98.7% original price (2021) |
| Buyer Profile | First-time, entry-level focus | Broad buyer demographic |
Overview Of LGI Homes
LGI Homes is a relatively new homebuilder that was founded in 2003 in Houston, Texas. Since then, they have expanded across the United States and currently build homes in over 18 states.
Some key facts about LGI Homes:
- Specializes in affordably priced, entry-level homes. Home prices typically range from $150,000 to $350,000.
- Offers simple and efficient home designs with minimal customization options. Focus is on providing essential features and keeping costs low.
- Constructs homes on speculative basis before finding buyers. Allows them to offer quick move-in timelines.
- In 2021, closed over 18,000 homes making them one of the nation’s largest homebuilders.
- Caters towards first-time homebuyers, retirees, and investors.
- Homes are built with a focus on sustainability and energy efficiency.
Overall, LGI Homes aims to make homebuying simple and affordable with their streamlined process and homes designed for maximum value. Their business model allows them to sell homes for lower prices than many competitors.
Overview Of KB Home
KB Home is one of the oldest homebuilders in the U.S., founded in 1957 in Los Angeles. They build homes aimed primarily at first-time homebuyers and operate in over 40 markets across 8 states.
Here are some KB Home key facts:
- Offers diverse range of home types including single-family homes, townhomes, and condos.
- Home prices range from low $200,000s up to $1 million plus. Caters to a wider demographic than just entry-level.
- Focuses on personalization with wider selection of home designs, customization options, and upgrades available.
- Builds homes only after purchase contract, not on speculation.
- Has built over 600,000 homes since 1957. Ranks in top 5 builders nationally for total homes delivered.
- Places emphasis on energy efficiency and sustainability in construction.
KB Home prides themselves on catering to each homebuyer individually with a variety of choices. Their experienced design team can help customize plans.
Now that we’ve covered the basics on each builder, let’s do a side-by-side comparison of LGI Homes Vs. KB Home across some key factors:
Home Price Points
One of the biggest differences is that LGI Homes caters more towards entry-level homebuyers with lower price points, while KB Home offers homes at a wider range of price points.
LGI keeps costs down by limiting customization options and features. Their homes typically range from around $150,000 to $350,000 nationwide.
Meanwhile, KB offers homes from the low $200,000s up to over $1 million. Their average home price is higher than LGI’s, catering to more mid-range and move-up buyers in addition to entry-level.
So LGI is competitive for those with tighter budgets, while KB reaches those looking to spend more for larger or higher-end homes.
Customization Options
LGI Homes takes a streamlined approach with minimal customization, while KB Home places emphasis on personalization and options.
LGI offers a selection of engineered, pre-determined floor plans. Their homes come with many features included, but offer limited options for structural changes or upgrades. Their priority is providing essentials at an affordable price over customization.
In contrast, KB promotes their wide array of options for personalization in both design features and finishes. Homebuyers can select from numerous home designs, make structural modifications, and upgrade surfaces, fixtures and finishes. This flexibility comes at an added cost.
So for buyers wanting a more customized home, KB is likely the better choice. But for those satisfied with simpler included features, LGI’s approach keeps costs down.
Construction Timeline
The homebuilding processes for LGI and KB differ, which impacts timeline to move-in.
LGI Homes builds homes on a speculative basis before a contract, so they have inventory ready to go. This means quick move-in timelines, often within 30-60 days once under contract.
KB Home does not spec build, so homes don’t start construction until after purchase agreement. Build time averages 4-5 months before completion.
So LGI Homes is the way to go for buyers who need a quick closing or want to move in ASAP. KB has a longer timeline but gives buyers chance to customize first.
Also watch this video!
Energy Efficient And Sustainable Features
Both LGI and KB Home emphasize energy efficiency and sustainability in their construction.
LGI’s homes feature double-pane Low-E vinyl windows, LED lighting, high-efficiency HVAC systems, and more. They partner with third-party verifiers to confirm efficiency.
KB also highlights their energy-saving features like increased insulation, high-performance windows and water heaters, ENERGY STAR appliances and more. Many communities offer solar options too.
Overall, both builders include responsible construction practices and make energy efficiency a priority. LGI edges out KB for affordability of efficient features, but both integrate sustainability well.
Geographic Markets
LGI Homes and KB Home have a presence in markets across the U.S. but availability varies by state.
LGI currently builds homes in over 18 states including Texas, Arizona, Florida, Georgia, and many more. Focus is on southern and western regions.
KB is present in 8 states – mainly concentrated out west but growing eastern presence too. States include California, Nevada, Arizona, North Carolina, Florida and others.
Homebuyers should research locations in their target state. LGI likely has more widespread availability, while KB has more limited communities.
Quality And Customer Service
Feedback on quality and service is mixed for both LGI and KB Home.
LGI gets high marks for affordable pricing but mixed reviews on finishing details and responsive service. Quality sometimes suffers from their high construction volume.
KB also gets mixed feedback. They have a reputation for quality builds but some concerns over repairs needed after move-in. Their customization process can also be lengthy.
Overall, quality and service for both depends in part on local construction teams. Do thorough research and new home walkthroughs before purchase.
Resale Value
KB Home edged out LGI in 2021 average resale price percent, but both were close to the national average.
According to analysis of 2021 resale data, the average resale price on KB Home was 98.7% of the original price paid. LGI Homes resold at an average of 97.5% of the original price.
The national average resale price in 2021 was 98.5% of original price. So KB Home beat the average slightly while LGI fell just below.
Factors like location and market conditions impact resale value too though. Overall resale outlook is fairly comparable for both builders.
Also Read: Choose Between D.R. Horton And KB Homes.
Frequently Asked Questions (FAQ)
KB Home and Lennar are two of the nation’s largest production homebuilders. Key differences:
KB offers more customization options and higher-end features, while Lennar focuses on streamlined essentials to keep prices low.
Lennar builds slightly more homes annually (over 50,000 Vs. KB’s roughly 30,000).
Lennar has a presence in 19 states, while KB is in 8 states concentrated out west.
Lennar includes innovative tech features like smart home automation. KB highlights energy efficiency.
Quality and service depends on local team – research reviews thoroughly before choosing.
Overall Lennar is better for affordability and tech while KB excels at customization and higher-end details.
Some of LGI Homes biggest competitors in the production homebuilding space include:
D.R. Horton (one of nation’s largest homebuilders)
Lennar (major national builder)
Taylor Morrison Homes (rapidly growing builder)
Meritage Homes (publicly traded builder in western/southern states)
Century Communities (fast-growing company catering to first-time buyers)
These builders have similar business models focused on higher volumes of homes at lower price points. They aim to make buying easier with streamlined standardization options. Competition is high for entry-level and first move-up home segments.
KB Home was previously known as Kaufman & Broad Home Corporation. The company was founded in 1957 by Eli Broad and Donald Kaufman.
In 1971, the company officially changed its name to KB Home to align with the “KB” abbreviation that was already commonly used. The renamed KB Home reflected the national expansion of the company beyond its California roots.
KB Home continues to honor its founders with the Kaufman & Broad Home Foundation, supporting charitable initiatives focused on housing. The company has now been building homes for over 65 years.
LGI Homes was founded in 2003 by Eric Lipar in Houston, Texas. The company went public in 2013, which helped fuel their rapid nationwide expansion over the last decade.
In 2018, LGI celebrated their 15th anniversary having built over 20,000 homes. Then just three years later in 2021, they surpassed 50,000 homes sold.
So LGI Homes has only been a homebuilder for just under 20 years, but they have seen explosive growth in that short time to become a top 10 builder in the nation. Their business model quickly resonated with homebuyers looking for affordability and efficiency.
Conclusion
In summary, LGI Homes is ideal for budget-focused buyers wanting basic included features at the lowest price point.
Whereas KB Home appeals to those looking for more personalized options who have higher budgets and want to invest in upgrades.
LGI streamlines everything for affordability while KB promotes choice. There is no definitively “better” builder – it depends on your priorities as a homebuyer!
Do your research to decide if one model suits your needs more. And carefully examine quality, value and customer service on a community level.
