KB Homes is hoping to have big success thinking small.
The company is building 880-square-foot, two-bedroom, one-and-a-half-bath houses in three suburban Houston areas. The homes sell for $64,000.
If the homes sell well in Houston, KB plans to build them in other cities.
CEO Jeffrey Mezger says the company is returning to its post-World War II roots, when small homes were the norm.
“Any time there’s been an age of exuberance and then the economy turns,” he says, “people get back to ‘What do I need?’ rather than ‘What could I buy?'”
Source: Business Week, Christopher Palmeri (03/02/2009)