Homebuilding Industry Outlook

4 | kb Built-to-Order Model Attracts Largest Demand Segments of Market HOME A Leader in the 1st Time Buyer Segment While Drawing a Mix of Buyers to Our Communities 11% Q3 2022 Buyer Profile (Based on Homes Delivered) 22% 1st Time 13% 54% Invest in land positions within prime growth submarkets Position our product 2nd Move-Up 1st Move-Up Active Adult to target the median household income in each submarket BTO enhances value through choice of lot, square footage, floor plan and elevation, and then the ability to personalize in our Design Studios While we primarily target the 1st time and affordable 1st move-up buyers, our model also appeals to 2nd move-up buyers and empty i nesters who can make a different set of choices in the same community I O2022 KB Home

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