The landscape of U.S. homebuilding continues to evolve as McKinley Homes, a fast-growing multiregional builder based in Atlanta, announces the acquisition of Liberty Home Builders, a Houston-area company founded in 2013.

While not nearly the largest M&A deal of 2024, this transaction signals deeper trends reshaping a homebuilding sector consolidating on an accelerated timeline — trends that extend beyond public-to-private acquisitions and international enterprise entries into the American residential market.

This deal underscores the critical importance of build-to-rent (BTR) capabilities, the influence of local land acquisition experts, the role of acquirers of choice, and the widening field of bidders for homebuilding firms.

As the year winds down, the combination of McKinley and Liberty serves as a lightning rod case study of how private-to-private acquisitions drive growth, foster competitive advantage, offer succession- and legacy planning options, and rebalance power in residential development.

A Strategic Texas Expansion

McKinley Homes, founded in 2016 by managing partner Jinsong Yang, has been expanding rapidly across the Southeast. The acquisition of Liberty Home Builders marks the company’s first major step into Texas, an essential foothold in one of the nation's most dynamic housing markets.

Liberty Home Builders’ excellent reputation for building quality homes in desirable communities in one of the fastest-growing regions in the nation allows us to continue the growth trajectory of our company," says Yang in the deal announcement.

Liberty's decision to partner with McKinley reflects a need to scale operations and secure greater financial backing. Damon Sachs, President of Liberty and now head of the newly formed McKinley Homes Houston Division, explains:

We were looking for a partner who is as dedicated to building high-quality homes and lifestyle-oriented communities as we are. McKinley Homes provides us with the financial resources and homebuilding leadership expertise that ensures we can continue to build quality homes for Houston residents for many years to come."

The deal also marks a personal milestone for Liberty’s founder, John Sachs, Damon’s father, who is stepping back into retirement. Damon now takes the lead, ensuring continuity and growth for the company his father helped build.

A Father-Son Legacy, and a Strategic Differentiator

Liberty Home Builders’ origin story is one of generational leadership and entrepreneurial grit. John Sachs, a homebuilding veteran with more than 45 years of experience — including a long tenure with Pulte Homes — founded Liberty in 2013 alongside Damon and a small team of trusted colleagues. The idea was simple: build a homebuilding company that could operate independently of the large public players dominating Texas.

My father retired from Long Lake Ltd., in 2012. Still, after about a year, we saw an opportunity to build something new — something that focused on providing a differentiated product for buyers," says Damon.

Liberty’s early success came from targeting entry-level buyers, a segment often overlooked by larger builders following the Great Recession. The company’s model blended affordability with high-end design features, allowing Liberty to carve out a niche in the highly competitive Houston market.

We knew we couldn’t compete on volume alone, so we focused on offering higher-end finishes in our entry-level homes. We wanted to provide something that felt a step above the standard new-home product, making it more livable for families long-term," Damon explains.

This strategy proved prescient. By catering to first-time buyers looking for lasting homes, Liberty was able to differentiate itself from larger competitors. The company’s attention to design details and construction quality allowed it to stand out in a crowded field, winning over buyers who might otherwise gravitate toward larger public builders.

Build-to-Rent: A Key Driver

One of the defining threads of this acquisition is Liberty’s foundational experience in build-to-rent. Liberty entered the market in 2013, pivoting from traditional for-sale homes to BTR communities. This model—offering single-family homes for rent—has emerged as a long-term growth driver, catering to both families priced out of homeownership and those who prefer rental living.

Tony McGill, Senior Managing Director at Zelman & Associates, which represented Liberty in the deal, highlights the significance of BTR in the transaction:

Liberty started as a build-for-rent builder, selling homes to institutional investors early on. The success they have in that space positions them as an attractive target for McKinley, which is looking to expand both for-sale and rental programs across Texas."

As affordability pressures mount and rental demand grows, McKinley’s acquisition positions it to leverage Liberty’s BTR expertise, offering flexibility in product delivery while expanding its market share.

Land Expertise as a Competitive Edge

Another key element of this deal is Liberty’s deep local expertise in land acquisition and development. Damon Sachs, who previously worked with Houston stalwart Long Lake Ltd., has an established track record in navigating the intricacies of Houston’s competitive land market.

We’ve always had to punch above our weight when it comes to land. Knowing where to find the right opportunities — whether it’s finished lots in master-planned communities or acreage on the city’s outskirts—has been our edge," says Damon.

McKinley’s ability to retain Liberty’s leadership team, including key land acquisition talent, reflects the growing recognition that local knowledge is indispensable. In an era where land and vacant-developed-lot scarcity is one of the primary bottlenecks for builders, the combination of McKinley’s capital and Liberty’s local connections positions the company to expand aggressively in Houston and beyond.

Acquirers of Choice: Beyond the Balance Sheet

The human element of M&A — cultural fit, trust, shared values, and a dashboard of how the near-term future maps out — continues to play a decisive role in shaping homebuilding consolidation. Liberty’s leadership had other suitors but ultimately chose McKinley due to the alignment of strategic goals and operational philosophy.

We didn’t just want to sell to the highest bidder. It was about finding a partner who valued our team and shared our vision for growth," says Damon.

This emphasis on cultural fit reflects a broader industry trend. In a market increasingly shaped by public giants and global enterprises, private-to-private deals offer a more personal approach to consolidation. Builders like Liberty see in firms like McKinley not just a buyer, but a partner capable of preserving their legacy while fueling future growth.

The Expanding Field of Bidders

While much of the attention in homebuilding M&A has focused on public-to-private deals or international acquisitions, this transaction underscores the expanding pool of potential buyers. McKinley Homes, a privately-held firm with ambitious growth plans, is part of a new wave of multiregional private builders competing for market share.

What we’re seeing is a shift in the types of players interested in acquiring homebuilding firms. It’s not just public builders or massive global enterprises anymore," says McGill.

A Launch Pad

For McKinley, the Liberty acquisition is more than just a transactional win — it’s a scaffolding and lift-off pad for deeper expansion into Texas, one of the country’s most dynamic and competitive homebuilding markets.

Houston is a natural fit for us. The growth happening here, combined with the talent and land pipeline that Liberty brings to the table, sets us up for long-term success," says Yang.

As the Sachs family transitions, John Sachs exits with confidence, knowing his legacy and son’s leadership remain in capable hands. Damon now carries Liberty’s future forward, equipped with the resources and scale to thrive in the next chapter of homebuilding’s evolving landscape.