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One of the leading U.S. homebuilding companies, KB Home (KBH - Analyst Report) recently acquired land in New Braunfels in San Antonio to develop a community called West Village. Located in Creekside, the new community will accommodate 469 homes. The company is expected to commence land development in summer this year.  

The residents of West Village can choose from two collections of homes. Residents will have access to shopping centers, a swimming pool, a picnic pavilion, walking trails and playscape for kids.

All the homes will offer energy efficient features and will help residents save on their utility bills. The homes will also incorporate WaterSense labeled faucets and fixtures, which help to conserve natural resources. Buyers can even opt for solar panels, which help to lower energy bills further.

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.  

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 new communities will help KBH meet this excess demand for homes. In fact, in order to strengthen its supply side, the company recently unveiled Whitmore Oaks and Westberry Manor communities in Mandarin in Northeast Florida.

KB Home carries a Zacks Rank #3 (Hold).

Other Stocks to Consider

Investors interested in the homebuilding sector can also consider stocks like William Lyon Homes (WLH), Taylor Morrison Home Corporation (TMHC - Snapshot Report) and Lennar Corp. (LEN - Analyst Report). While William Lyon and Taylor Morrison sport a Zacks Rank #1 (Strong Buy), Lennar carries a Zacks Rank #2 (Buy).

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