Drees Homes, a privately held, multigenerational homebuilding firm with a multi-regional scale and national ambitions, has acquired San Antonio-based Monticello Homes. This marks a strategic expansion into the No. 5-ranked U.S. new-home construction market.

The deal — announced today — adds another chapter to the intensifying wave of homebuilder mergers and acquisitions in an industry grappling with higher borrowing costs, constrained capital access, and a battle for market share among private and public players.

With this acquisition, Drees now operates in all four of Texas’ top housing markets— Dallas-Fort Worth, Houston, Austin, and now San Antonio — cementing its foothold in one of the nation’s most competitive and high-volume homebuilding regions.

Between 2023 and 2025, San Antonio has experienced notable economic and demographic growth. The city's population increased by approximately 22,000 residents from mid-2022 to mid-2023, marking a 1.5% rise and bringing the total to around 1.5 million. This surge is largely attributed to domestic migration, as individuals are drawn to San Antonio's affordable living and robust job market. Economically, the San Antonio metro area's gross domestic product grew by 4.6% from 2022 to 2023, reaching $150 billion in 2023. Employment also saw an uptick, with payrolls expanding by an annualized 2.2% in November 2024, adding 2,200 jobs. Key sectors contributing to this employment growth include leisure and hospitality, education and health services, and professional and business services. The city's appeal is further enhanced by its strategic initiatives to foster economic development and its commitment to maintaining a high quality of life for its residents.

We are thrilled to announce our expansion into San Antonio and welcome Monticello’s employees to the Drees team," says Tim Terrell, President of Drees Homes, in a prepared press statement. “This move represents a significant milestone as we continue to grow and innovate.”

For Wayne Moravits, Founder and President of Monticello Homes, the deal is both a milestone and a legacy decision. The statement notes:

After three decades of building luxury homes in San Antonio and surrounding areas, I am excited and proud to pass our legacy to Drees Homes,” Moravits says. “Monticello Homes has always been committed to delivering a personalized home building experience. Drees Homes is a homebuilder whose dedication to quality and customer satisfaction aligns with our core values.”

A Marker of the 2025 M&A Surge

Drees Homes' purchase of Monticello reflects a broader shift in homebuilding consolidation trends, where private-to-private acquisitions are reshaping the competitive landscape in major U.S. housing markets.

Tony Avila, Co-Founder and Managing Principal of Builder Advisor Group, which represented Monticello in the deal, underscores the market forces driving transactions like this.

Monticello’s transition into Drees is happening at a time when private homebuilders — especially those with strong brand equity — are looking for the right partners to navigate a capital-constrained environment,” Avila tells The Builder's Daily. “Wayne Moravits built an exceptional company. He's got amazing systems, amazing employees, wonderful margins, and a wonderful return on capital. In this deal, we saw a strong alignment between Drees’ long-term strategy and Monticello’s local expertise.”

Zach Legge, President of Builder Advisor Group, notes the cultural and operational synergy that made the acquisition an attractive play for both sides.

Drees is not typically an aggressive acquirer,” Legge says. “They’re selective, and for them to make a move like this speaks volumes about the strategic fit. Monticello’s luxury architecture, reputation, and market penetration in San Antonio provide Drees with a launching pad in an area where they’ve long wanted to expand.”

Strategic Play: Scaling Through Selective M&A

Drees Homes — ranked the 21st largest private builder in the U.S. — has been clear about its goal to double in size by 2028, the year of its 100th anniversary. The Monticello deal accelerates that trajectory, adding a luxury homebuilding operation with an average selling price (ASP) of $750,000 and a strong move-up buyer base.

Monticello's 44 employees are joining Drees, with Division President Mark Elphick continuing to lead local operations.

The Monticello team members are being offered either the same compensation or slightly better; they all have a better benefits package with Drees Homes," notes Tony Avila. "Drees has done an amazing job at ensuring that this will be a very successful acquisition."

Founder Wayne Moravits will remain a consultant for at least one year, ensuring continuity in developer relationships and operational execution.

Monticello’s relationships with land developers, trade bases, and customers—built over 30 years — are critical," says Legge. "That continuity, plus Drees' capital resources, makes this a powerful combination."

A Competitive Chess Move

The Texas market is a battleground, with large public builders like D.R. Horton, Lennar, and PulteGroup dominating volume, but well-positioned private firms like Drees proving their ability to compete through scale, efficiency, and strategic M&A.

Monticello’s absorption into Drees reflects a growing trend where well-capitalized, operationally disciplined private homebuilders acquire smaller, successful private firms as an alternative to public builder buyouts.

“Private homebuilders with solid fundamentals are proving they can survive and thrive in this environment,” said Avila. “This deal is part of a broader pattern—stronger private firms consolidating market share while securing the capital and operational leverage needed to compete with public homebuilders.”

Big Picture: What This Means for Homebuilding

The Drees-Monticello deal lands when 2025 is expected to be one of the busiest years in homebuilder M&A history.

Several forces are shaping the landscape:

• High borrowing costs: Access to capital remains a defining challenge, making private-to-private acquisitions an increasingly attractive exit strategy.
• Competitive margin pressures: Larger homebuilders—particularly public companies—are leveraging their scale and financial strength to offer aggressive price incentives and mortgage rate buydowns, squeezing out smaller players.
• Market concentration: The homebuilding industry is shifting toward a more consolidated ecosystem, with fewer but stronger, better-capitalized, and more operationally resilient players.

For Drees, this acquisition fits squarely into its long-range playbook — controlled, methodical expansion into high-growth, high-competition metro areas, using its customer-first, high-quality brand positioning to win market share.

For Monticello, the deal represents a legacy handoff, ensuring that the company’s brand and craftsmanship will continue under a nationally recognized, family-owned homebuilding leader with nearly a century of industry experience.

What’s Next?

Drees is unlikely to stop at San Antonio. Given its 2028 growth goals, this deal could be one of several moves the company makes as it fortifies its market presence nationwide.

For private homebuilders evaluating their next steps in a shifting industry landscape, the Drees-Monticello deal sends a clear message: Partnerships, capital strength, and operational alignment are now essential to survival and growth in an increasingly competitive and concentrated homebuilding marketplace.