KB Home said it would exit the Indianapolis market, a decision based on eroding demand from a shrinking population.
The Los Angeles-based home builder said that it would consolidate its Indiana operations with its Chicago office and that layoffs would result.
KB Home spokeswoman Caroline Shaw said the company would not disclose the number of job cuts.
"It's a very small division," she said. "We're consolidated. We only had small communities in and around Indianapolis."
The company has 139 homes under construction in the Indianapolis area, Shaw said.