Karatz has led KB Home during a period of immense growth. When he took over the CEO position, the company was selling and delivering 4,000 prefabricated homes a year. By 2003, the company was producing and selling over 27,000 homes. Karatz grew the business through acquisitions as well as organic growth. Instead of building and then selling homes, Karatz introduced pre-selling. With 5,000 custom options, Karatz has helped make home building a more consumer friendly option.