The Inside Story of Drees Homes' Leadership Pivot ... And What Comes Next
As Fort Mitchell, KY-based Drees Homes approaches its 100th anniversary, the venerable family-owned homebuilder is at a crossroads. It is embarking on a significant leadership transition that signals both continuity and evolution.
Longtime Executive Vice President of Homebuilding Operations, Dan Jones, has retired. A non-family member has stepped into a top strategic role for the first time in the company’s 96-year history. Tim Terrell, formerly Executive Vice President and CFO, now leads as President, while CEO David Drees continues to focus on long-term strategy and cultural leadership. This leadership shift is far more than a passing of the torch — it’s a critical juncture that repositions the company for its centennial and beyond.
In an exclusive interview, Terrell shared his vision for the future, revealing not just plans but guiding philosophies that will drive the company toward its goal of doubling in size by 2028. This shift is more than a milestone for industry insiders— it’s a competitive signal. Here’s what’s next for Drees Homes, straight from the new president himself.
A Legacy of Values, A Future of Growth
When asked about taking the reins of a company with such deep family roots, Terrell reflects on aligning his values with the Drees culture, describing it as a “perfect fit.” He emphasizes the importance of maintaining the company’s legacy while pushing forward.
When they tasked me to fill this spot, I was incredibly humbled. It’s a role far exceeding anything I dreamed of,” Terrell says. “The Drees name stands for quality, integrity, and doing the right thing for customers. Those values aren’t changing—they’re the foundation we’ll build on.”
Terrell’s relationship with David Drees remains central to this transition.
David will focus on two areas: culture and talent development and staying engaged with our land strategy,” Terrell explained. “He’s not stepping away — he’s deeply involved where it matters most.”
From a conversation we had with David himself:
One of the things I’m probably most proud of is being able to lead a company through the transition and improve the culture and the team throughout.
Hopefully, we’re ready for the next 23 years."
Expanding Markets, Expanding Scale
One of the critical pillars of the company’s Centennial Strategy is market expansion, something Drees hasn’t pursued since entering Houston nearly a decade ago. Terrell explains that expansion is essential to the company’s goal of growing from 2,400 homes in 2024 to 4,000 by 2028.
We’ve identified several market candidates for entry, but we have to be smart about it,” Terrell said. “We’d love to buy an established builder, but if that’s not possible, we have the resources to go 'greenfield.'”
What’s clear is that Drees’ expansion won’t compromise its focus on the move-up buyer — a customer less sensitive to price and interest rate fluctuations. Terrell notes:
Our move-up buyer is central to our strategy. They’re not just buying a home—they’re buying customization and quality that’s hard to find elsewhere. We know that’s our strength and will continue to lean into it.”
In addition to expanding geographically, Drees is also diversifying its product offering.
We’re also targeting the middle segments of the market,” Terrell shares. “We don’t want to be entirely in the top 20%, so we’re adding smaller lot positions and attached product — still customizable, still premium, but more accessible.”
A Data-Driven Future
Terrell’s background at Kroger has played a pivotal role in shaping his leadership approach at Drees, particularly his emphasis on using data to inform decision-making.
At Kroger, we were laser-focused on understanding the customer, and I brought that mentality with me to Drees,” Terrell explained. “We’re leveraging data to understand our buyers better than ever, helping us tailor our offerings and improve our processes.”
This data-driven approach extends to risk management, a key focus for Terrell as Drees navigates the cyclical nature of the homebuilding industry.
We know we operate in a cyclical business, and we structure our deals and balance sheet accordingly,” he said. “Risk management is one of my seven guiding lights, and it’s about being ready for the Black Swan event—whatever form it takes.”
Competing in a Fierce Landscape
As Terrell steps into this new role, he’s keenly aware of the competitive pressures facing Drees Homes. Public homebuilders, armed with greater access to capital, are aggressively pursuing market share.
The competition is getting bigger and better every day,” Terrell noted. “We’re not just competing on price — we’re competing on experience, customization, and quality. But we have to be aggressive, and we have to execute flawlessly.”
One way Drees is staying competitive is through its “Elevate” brand, which focuses on custom homes on your lot.
Elevate dovetails perfectly with what we do best—customization,” Terrell said. “We’ve built a model that uses our existing plans and back-office functions but with dedicated management for on-your-lot homes. It’s another way we can serve our customers while maintaining efficiency.”
Looking to 2028 and Beyond
Drees Homes' ultimate goal is to double in size by 2028, its 100th anniversary. Terrell is confident in the company’s ability to achieve that growth but knows it won’t come easy.
We’ve set ambitious goals, but they’re achievable,” he said. “We want to do 300 units per market because we believe that’s the scale needed to compete effectively in each local market. It’s not about hitting a profit target — it’s about strengthening our business model for the long term.”
As for challenges, Terrell is pragmatic.
High interest rates are a real obstacle. Buyers hesitate to give up their 3% mortgage, and I get it. But as rates come down, we expect to see more household turnover, driving demand. The competition is fierce, especially from the public builders, but we’re confident that our product and customer experience will keep us ahead.”
With a four-year plan in place and a clear vision for the future, Drees Homes is poised to continue its legacy of excellence while adapting to the evolving housing market. Under Terrell’s leadership, the company is preparing for its centennial celebration and laying the groundwork for the next 100 years.
One of my goals will be to get to our 100th. That’ll be a big celebration, it’s going to be huge. We’ll have a big party.
It’ll also give me more years to work with my kids and maybe my nieces and nephews, and hopefully, they'll have an opportunity to take this company into the future past that point. We want to carry on our legacy and continue to be proud of what we do.
We also want to grow. We could do better, and we need to do better at growth. We want to continue to make the company a great place to work and provide a future for employees and our family."
No pressure, Tim Terrell.