t came from the central United States, and 22 percent came from the southwest (2001 KB Annual Report 33).
The company is divided into two strategic business units: construction and mortgage banking. In 2001, the construction services unit generated revenues of more than $72 million, compared to revenues of $4.501 billion for construction. The mortgage banking business unit serves KB Home's homebuyers, but KB Home's customers are not required to use the mortgage banking services offered through the company. KB Home is aggressively pursuing expanding its mortgage banking services, and expects to continue to see growth in this area (gross revenue increased 20 percent from 2000 to 2001) (2001 KB Annual Report 47).
KB Home offers the same type of home (first-time or trade up homes) throughout the geographic regions in which it operates. However, the company's revenues vary significantly depending on the geographic region. In 2001, the company's average new home price increased 5.8 percent to $178,000 across all geographic lines. However, the average selling price of homes in the West Coast increased 10.2 percent, to $283,100, over 2000. In the Southwest, prices increased 8.5 percent to an average of $157,600 in 2001. In the Central region, the average price increased 9.4 percent to $140,700 in 2001. In France, the average price decreased 7.7 percent to $146,300 (2001 KB Annual Report 38).
However, the company also participates in commercial construction in France, an activity that it does not pursue in the United States. In 2001, revenues from its commercial development in France totaled more than $69.9 million, a significant increase from the $800,000 realized in 2000. At this time, all of the company's activities in France are concentrated in Paris, and with an improved economic environment in France, the company is now increasing its marketing efforts in this commercial real estate sector (2001 KB Annual Report 38).