Giant homebuilder KB Home shifts strategy amid a housing market where it lacks pricing power

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There’s no doubt about it: Housing market softening across the Sunbelt—the epicenter of U.S. homebuilding—has caused homebuilders to lose pricing power over the past year.

Amid the additional margin compression, some giant homebuilders are adjusting their strategies. Lennar is finally easing up a little on its market share, taking volume-over-margin strategy, while KB Home—a homebuilder ranked No.