Ground Breaks on 38 New Townhomes Coming To Atlantic City

ATLANTIC CITY — A new residential development is officially underway in Atlantic City's Inlet section, where K. Hovnanian Homes broke ground Wednesday on 38 waterfront townhomes.

The Terraces at Absecon Inlet will be built at Pacific and New Hampshire avenues, just steps from the beach and Boardwalk. The project marks K. Hovnanian Homes' return to the Atlantic City market after several years away.

Atlantic City Mayor Marty Small Sr. joined representatives of K. Hovnanian, along with city, county and state officials and community and development partners, for Wednesday's groundbreaking.

“We appreciate K. Hovnanian’s commitment to the Great City of Atlantic City and its continued investment in bringing new housing opportunities and stability to our residential market,” Small said.

The four-story townhomes will offer approximately 1,848 square feet of living space, with three bedrooms, three-and-a-half bathrooms, two-car tandem garages, open-concept living areas and balconies on the top level.

The first phase of the development will include five buildings, a fully furnished model home and a limited number of homes that will be available for quick move-in.

The first homes are expected to be delivered as early as summer 2027.

K. Hovnanian Division President Nikki Mallozzi said the company was particularly attracted to the waterfront location and what she described as a new chapter for Atlantic City.

“After many years away from Atlantic City it feels great to say we’re back,” Mallozzi said.

She said the company is seeing new residential development, continued investment and “new energy” throughout the city.

The project is part of a broader increase in residential development in Atlantic City, with new townhomes, multifamily housing and redevelopment projects underway or advancing in neighborhoods throughout the city.

City officials say more than $250 million in infrastructure investment is currently being spent or committed in Atlantic City, supporting additional development.

For the Inlet neighborhood, the Terraces at Absecon Inlet will transform a waterfront property into new housing while adding another development to an area that has seen increased investment in recent years.

Mayor Small said Wednesday's groundbreaking is only the beginning of what he expects will be additional development activity in Atlantic City.

“This is just the first shoe to drop, and there are many more groundbreakings to come,” Small said.

South Jersey NewsBeat will continue to follow development of the Terraces at Absecon Inlet as construction progresses toward the expected summer 2027 opening.