Leading U.S. homebuilding company, KB Home (KBH - Analyst Report) has opened a new master-planned community called Cypress at University District in Rohnert Park.
Price of Cypress at University District homes start from mid-$500,000s. Notably, the homes offer three two-story floor plans, which range in size from 2,007–2,371 square feet and can accommodate up to five bedrooms and three baths. Also, homebuyers can modify their chosen residence to suit their preferences at the KB Home Design Studio.
The community features 13 acres of parks, 60 acres of open space, and three miles of walking trails, which links it to the city center, Sonoma State University, and schools in the neighborhood.
Also, homebuyers will enjoy close proximity to employment centers, retail and dining establishments, and recreational spots. They will also get easy access to Interstate 101 for travel throughout the Bay Area. Moreover, the site of the upcoming Sonoma-Marin Area Rail Transit (SMART) station is only a few minutes away. All homes incorporate energy-efficient and water saving features to help residents save on their utility bills.
Meanwhile, the housing market has done reasonably well this year, with demand for new and existing homes rising on the back of historically low interest rates, an improving job market and income growth.
Increasing its community count will help KB Home to cater to the improving housing demand. Thus, in this regard, the addition of Cypress at University District bodes well and should strengthen this homebuilder company’s position in the housing industry.
However, along with other homebuilders like Lennar Corp. (LEN - Analyst Report) , D.R. Horton, Inc. (DHI - Analyst Report) and PulteGroup, Inc. (PHM - Analyst Report) , rising land and labor costs are denting the gross margin for KB Home as well.
KB Home currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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