Atlantic City's Southeast Inlet Could See Hundreds of New Homes as Major Residential Projects Move Forward

ATLANTIC CITY, N.J. — Atlantic City's Southeast Inlet could see hundreds of additional homes constructed over the next several years as developers move forward with residential projects near the Absecon Lighthouse, Boardwalk and surrounding neighborhoods.

Developer Keith Groff estimates that between 300 and 400 homes could be built in the Southeast Inlet over the next several years, although that figure represents his projection rather than a confirmed total of approved construction.

Groff discussed the neighborhood's changing housing market Monday, Sept. 21, during an appearance on Off The Press with Scott Cronick on News Talk 1400 and 92.3 WOND.

Assemblyman Don Guardian, R-Atlantic, who served as guest host, also discussed the potential economic impact of additional residential development on the city.

"I think that for the Southeast Inlet specifically, we're looking at about three to four hundred homes in the next few years," Groff said.

The developer pointed to several projects already underway, including his own luxury townhouse development near the Absecon Lighthouse and a larger residential project by K. Hovnanian Homes.

Hovnanian Begins Construction on 38 New Townhomes

One of the largest projects currently moving forward is the Terraces at Absecon Inlet, a development by K. Hovnanian Homes near Pacific and New Hampshire avenues.

Atlantic City officials announced the project's groundbreaking Aug. 12.

The first phase will include 38 townhomes near the beach and Boardwalk.

According to the city, the four-story homes will feature approximately 1,848 square feet of living space, three bedrooms, three-and-a-half bathrooms, two-car tandem garages and top-level balconies.

The development will consist of five buildings, including a fully furnished model home.

The city anticipates that the first homes could be delivered as early as summer 2027.

During Monday's interview, Groff said work had begun on the project's pilings and that crews were expected to return to begin pouring concrete footings.

He said prices for the new homes are expected to begin in the upper $700,000s.

"They broke ground a couple months ago on the pilings," Groff said. "They should be coming back in about two weeks to start pouring concrete for the footings."

The developer described the project as another indication of growing private investment in the Southeast Inlet.

Additional Hovnanian Phases Envisioned

The initial 38-home development is part of a larger redevelopment plan involving multiple blocks in the Southeast Inlet.

A concept plan presented to Atlantic City officials in 2025 identified five blocks with a combined potential of 155 townhomes.

The concept included the initial 38-home project and additional residential construction on four other blocks.

During Monday's interview, Groff described possible future development near Ocean Casino Resort, Altman Playground and Pacific Avenue.

He said another phase could be developed near the Boardwalk, followed by additional construction farther inland.

However, those future phases should be distinguished from the 38-home project that has already received approval and begun construction.

The broader redevelopment concept does not establish that all 155 homes have received final approvals or that construction schedules have been finalized.

Groff's Development Continues Near Absecon Lighthouse

Groff is also expanding his own residential project near the Absecon Lighthouse.

His first phase consists of eight homes, seven of which have sold, according to the developer.

The final home was recently listed for $899,000.

Construction is underway on seven additional homes, with completion expected in stages before Thanksgiving.

Groff said one of the new homes has already sold for just under $1 million.

He also plans to pursue a third phase extending from Vermont Avenue to Rhode Island Avenue.

The developer said he believes the success of his initial homes has demonstrated that buyers are willing to purchase newly constructed luxury housing in Atlantic City.

Will New Housing Help Atlantic City's Tax Base?

Guardian said increasing the number of market-rate homes could provide additional property tax revenue for Atlantic City.

The former mayor noted that the city relies heavily on revenue associated with casinos, state support and other existing funding sources.

He argued that attracting additional homeowners could help diversify the city's tax base.

"One of the most logical ways to help fund the city is by bringing in new homes that are market rate, that are taxable, and that people are going to be paying taxes for," Guardian said.

Groff said he expects many of the new properties to be purchased as second homes.

However, he believes Atlantic City's year-round entertainment, restaurants and other attractions will encourage owners to use their properties more frequently than second-home owners in some other Shore communities.

"Second homes in Atlantic City don't sit empty like they do in other shore towns for nine months out of the year," Groff said.

He also suggested that some properties could be used as short-term rentals.

Guardian argued that second-home owners could contribute property tax revenue without placing the same demands on certain municipal and school services as year-round households.

The actual fiscal impact would depend on property assessments, tax arrangements, occupancy, service costs and other factors.

What About Affordable Housing?

The growing number of higher-priced homes also raises questions about how Atlantic City's residential development will serve households with different incomes.

Groff acknowledged that many of the new homes are being marketed to buyers seeking second residences or higher-end Shore properties.

Guardian said the city must continue supporting affordable and workforce housing while also encouraging market-rate construction.

"We're certainly not taking anything away from affordable or workforce housing," Guardian said.

"We want that to stay, but we're kind of on the wrong mix."

He argued that additional market-rate housing could help expand the city's property tax base.

The proposed developments would add new residential properties to the Southeast Inlet, but the luxury homes described in Monday's interview are not being presented as affordable housing projects.

A Changing Neighborhood

The Southeast Inlet has experienced multiple redevelopment efforts over the years, including residential construction, public improvements and investment near the Absecon Lighthouse.

The neighborhood's redevelopment strategy has identified additional housing as a major component of its long-term revitalization.

A neighborhood action plan also identifies projects involving K. Hovnanian and other developers, along with improvements to existing residential properties.

Groff said he believes the success of recent projects is encouraging additional investment.

He credited other Atlantic City developers, including Brian Zoubek and Pat Fasano, with contributing to the city's broader residential redevelopment.

The ultimate number of new homes built in the Southeast Inlet will depend on financing, market demand, development approvals and construction schedules.

For now, the 38-home Hovnanian project and Groff's ongoing construction provide concrete examples of new residential investment in a neighborhood that developers believe has room for substantial additional growth.