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What does a family-owned Atlanta home builder do when buyers are cautious, interest rates remain elevated and national builders have significant scale? One answer is to compete where scale is not the only advantage.
That idea runs through Kittle Homes’ approach to development, from communities planned around suburban downtowns to homes that can be customized beyond a standard menu of options.
Zac Kittle, managing partner at Kittle Homes, recently joined host Carol Morgan on Atlanta Real Estate Forum Radio to discuss what the home builder is building across Metro Atlanta, what he has learned from previous market cycles and how technology could change the business in the years ahead.
A Lawrenceville Opportunity Started With the Location
Grove Park Village in Lawrenceville began with an unusual starting point: The city approached the builder.
The community, coming soon near downtown Lawrenceville, presented an opportunity to create something that would fit into the city’s broader vision for the area. Kittle Homes began working with city officials and architect Stephen Fuller on a neighborhood that would feel distinctive rather than interchangeable with other new home communities.
The plan calls for spacious homesites along with several unique floor plans. Full-brick entrances, gas lanterns and extensive landscaping will help establish the look of the community. The first 10 homes are expected to begin construction later this year.
The location may be just as important as the homes themselves. Walkability to a suburban downtown has become an increasingly attractive proposition for buyers who want the convenience of restaurants, entertainment and community events without giving up the space and quality associated with a larger home. That is particularly relevant for empty nesters and baby boomers who may be ready to downsize but are not necessarily ready to change their lifestyle.
The strategy has also played out in previous Kittle Homes projects, including Skyview on Broad in Sugar Hill and a community in downtown Grayson. In each case, the surrounding downtown is part of what makes the residential product compelling.
What Home Personalization Can Mean
Skyview on Broad offered another lesson, this time about what happens when a builder has room to respond to what it sees during construction. The townhome community presented opportunities for buyers to select finishes and personalize their homes, but one of the most memorable design decisions happened before a buyer ever moved in.
While framing one of the homes, the team decided the space between the dining room and living room did not look quite right. Rather than leaving the design as drawn, Kittle directed the team to add two wing walls and a large arch spanning roughly 20 feet.
The feature was not on the original architectural plans, yet visitors consistently responded to it. The on-the-fly decision became one of the home’s most noticeable design elements.
This adaptation highlights a distinction between semi-custom building and a highly standardized production model. A buyer might request a cubby for jackets and shoes or ask for a particular finish, and the team can evaluate the idea without being limited to a predetermined spreadsheet of choices.
The same philosophy shapes the company’s product research. Market data helps identify what is selling and which price points are working, but the goal is not necessarily to reproduce the most popular product exactly.
Kittle said the company often takes what the research shows and pushes the design a little further, competing with bigger builders while targeting a different price range. The reasoning is straightforward: Buyers want to feel like they are purchasing a home that reflects their preferences, not simply another version of the house next door.
“Cookie cutters belong in the kitchen, not your home design,” Kittle said.
The Developer and Builder Are Sitting at the Same Table
The ability to make those kinds of decisions starts well before framing. Kittle Homes typically handles both sides of development and construction. The company often acquires land, pursues rezoning, engineers the property, develops roads, streets and sidewalks and then builds the homes. That means decisions about the finished community do not happen in isolation.
A site plan can affect the number of homes, while the number and configuration of homes can affect the economics. Development decisions also influence the lots, which ultimately determine what can be built and sold. Keeping those pieces connected gives the team a clearer view of the entire project and more control over its costs.
“It really comes down to controlling the process from start to finish,” Kittle said.
When more stages of development and construction stay under one roof, there are fewer handoffs and fewer opportunities for costs to accumulate between separate companies. The result can be more room to invest in the features buyers see and value while maintaining the economics needed to make a project work.
How AI Could Change Homebuilding
Kittle sees artificial intelligence (AI) creating near-term opportunities in land acquisition and site planning. A builder could eventually input a property and generate an initial neighborhood layout, estimating potential lot yield before committing significant time and money to engineering.
Today, that process can require builders to put land under contract and then begin engineering work to determine how many homesites a property can support. AI could help move some of that analysis earlier in the process. The technology could also help with construction estimating, plan review and project coordination by organizing information, flagging code issues and identifying problems before plans reach a municipality.
Kittle expects more capable estimating tools to emerge within the next six months to one-and-a-half years. AI will not replace experienced builders, but it could reduce the time they spend gathering, checking and transferring information.
A Different Market Requires a Different Approach
As a fourth-generation Atlanta builder, Kittle has experienced several market cycles. He described the current environment as one of the toughest of the past decade.
Before COVID-19, builders could often presell entire neighborhoods. Then demand surged and inventory tightened, giving builders unusual leverage. The equation is different today. Higher mortgage rates have made monthly payments more difficult to manage, while homeowners who locked in rates around 3% have little incentive to sell. That has kept existing home inventory relatively constrained while leaving buyers with fewer affordable options.
Kittle Homes uses mortgage rate buydowns and other incentives to help buyers make the numbers work. New construction also brings new finishes, a warranty and the ability to select certain features, strengthening its value proposition compared with an existing home.
The bigger lesson is that builders can no longer assume buyers will simply accept the product as offered. They have to give buyers a compelling reason to make a purchase now.
The Next Opportunity May Be Preparing for 2028
Beyond Grove Park Village, Kittle Homes has two communities planned: a 64-townhome project in Sugar Hill near Northside Hospital and downtown and a 59-townhome community along Paper Mill Road in Lawrenceville. Construction is expected to begin in late 2027 or early 2028.
Kittle expects 2027 to remain challenging but believes builders will become more active in acquiring land as they prepare for 2028 and 2029 deliveries. That makes the decisions happening now particularly important. The right site, product and ability to adjust can determine whether a project is positioned for the market that eventually arrives.
“You need to have a unique product, and you’ve got to grind it out,” Kittle said.
In a business where conditions can change long before a home is finished, the ability to adjust may be one of the most valuable advantages a local builder can have.
Listen to the full episode of Atlanta Real Estate Forum Radio to hear Kittle discuss how local builders can compete in a changing housing market, why walkable suburban communities are gaining attention, how customization is shaping buyer expectations and where he sees artificial intelligence making its biggest impact on homebuilding. To discover where Kittle Homes is currently building, visit https://www.kittlehomes.com/.
About Kittle Homes
Kittle Homes is a family-owned Atlanta home builder with more than 75 years of experience. Now led by fourth-generation builders Judson Kittle and Zac Kittle, the company builds single-family homes and townhomes with a focus on quality craftsmanship, thoughtful design and lasting value.
Podcast Thanks
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About Atlanta Real Estate Forum Radio
Atlanta Real Estate Forum Radio, presented by Denim Marketing, highlights the movers and shakers in the Atlanta real estate industry – the home builders, developers, Realtors and suppliers working to provide the American dream for Atlantans. For more information on how you can be featured as a guest, contact Denim Marketing at 770-383-3360 or fill out the Atlanta Real Estate Forum contact form. Subscribe to the Atlanta Real Estate Forum Radio podcast on iTunes, and if you like this week’s show, be sure to rate it. Atlanta Real Estate Forum Radio was recently honored on FeedSpot’s Top 100 Atlanta Podcasts, ranking 11th overall and number one out of all ranked real estate podcasts.
