KB Home pulling out of Atlanta

One of the nation’s biggest home builders, KB Home, is quitting the Atlanta market.

The Los Angeles-based company has developed seven metro communities, three of which are completed, making it one of the biggest local homebuilders.

“KB Home has made the strategic decision not to invest in additional communities in Atlanta and make a gradual transition out of its operations in the market,” company spokesperson Cara Kane said.

“We are committed to completing and delivering all of the homes that are currently under construction in our four active communities in the Atlanta area to the full satisfaction of those homebuyers,” Kane said.

KB Home’s exit comes less than three years after the company announced it was teaming up with Martha Stewart Living Omnimedia to build the Hampton Oaks subdivision near Fairburn in south Fulton County. The houses were inspired by Stewart’s homes in New York and Maine.

KB Home built a second Martha Stewart community called Wynchase in Woodstock in Cherokee County.

Other KB Home communities are in Stone Mountain, Dallas, Buford and Atlanta. They are primarily starter-home communities where prices begin at less than $200,000.

Greater Atlanta has more than eight months supply of unsold, new single-family homes and a 117-month supply of developed lots, according to the housing research company Metrostudy.

In addition, construction starts year over year are down 60 percent and sales closings are off 40 percent, Metrostudy says.

Excess inventory and ballooning foreclosures are depressing home prices.

KB Home would not comment on the number of job losses.