KB Home reported a sharp decline in second-quarter performance, reflecting a punishing environment for residential construction. Revenue dropped to $1.11 billion, down from $1.53 billion during the same period last year. Profit plummeted to $27.3 million, or 43 cents per share, missing analyst expectations of 45 cents.

Operational volume took a hit as the company delivered 2,395 homes, a 23% decrease in deliveries compared to the previous year. This volume drop combined with a slide in the average selling price, which fell to $461,900 from $488,700, squeezed the builder's top line and overall margins.

These results forced the company to narrow its full-year outlook. The combination of fewer home closings and lower per-unit pricing indicates a cooling demand for new builds. The builder now faces a market where both volume and pricing power have eroded simultaneously to reach a $1.11 billion quarterly revenue mark.