Hovnanian Enterprises

Hovnanian Enterprises, Inc.
Company type	Public
Industry	Real estate, Homebuilding
Founded	1959
Founder	Kevork Hovnanian and brothers Hirair, Jirair, and Vahak Hovnanian
Headquarters	Matawan, New Jersey, United States
Area served	United States (Arizona, California, Delaware, Florida, Georgia, Illinois, Maryland, New Jersey, Ohio, Pennsylvania, South Carolina, Texas, Virginia, West Virginia)
Key people	Ara K. Hovnanian (former president), Kevork Hovnanian (founder)
Products	Detached single-family residences, townhomes, condominiums, retirement communities
Owner	Hovnanian family (majority voting control)
Website	www.khov.com

Hovnanian Enterprises, Inc. is a U.S.-based real estate firm specializing in the marketing, design, construction, and sale of residential properties. Their offerings encompass detached single-family residences, townhomes, condominiums, and communities tailored for retirees.

Company operations

Since its inception, Hovnanian Enterprises has completed the delivery of more than 336,000 homes, including 5,831 units during fiscal year 2018. The pricing of their homes spans from $144,000 up to $2.25 million, with an average price near $393,000. The company conducts business in numerous states such as Arizona, California, Delaware, Florida, Georgia, Illinois, Maryland, New Jersey, Ohio, Pennsylvania, South Carolina, Texas, Virginia, and West Virginia. Majority voting control remains with the Hovnanian family, holding over 50%, reflecting a 2015 valuation of $178 million.

In 2018, the headquarters relocated from Red Bank to Matawan in New Jersey. That same year involved a contentious financial transaction with the Blackstone Group involving a contrived default arrangement aimed at profiting from credit default swaps in return for advantageous loan conditions; however, this initiative was discontinued following regulatory scrutiny.

Hovnanian’s strategic approach centers on serving varied residential segments and maintaining a broad geographic footprint to foster ongoing growth and strengthen its position within the American homebuilding sector.

History

Founded in 1959 by Kevork Hovnanian, an Armenian American entrepreneur born in Iraq, alongside his three brothers—Hirair, Jirair, and Vahak—the company was established in Toms River, New Jersey with each brother contributing $1,000 plus borrowing an additional $20,000.

Early on, the firm earned recognition for providing affordable condominiums and townhouses aimed at first-time buyers and young families. Emphasizing cost reduction—such as foregoing common amenities like community swimming pools—Hovnanian offered two-bedroom homes priced near $30,000 during the early 1980s. Kevork articulated this approach as targeting buyers with limited social time by prioritizing value rather than luxury features.

In 1964, Jirair Hovnanian departed to create J.S. Hovnanian & Sons in Mount Laurel Township, New Jersey; by 1969 both Hirair and Vahak had also initiated separate ventures. Meanwhile, Hovnanian Enterprises continued expanding its market presence.

By 1989 the company had constructed and sold over 30,000 housing units including condos. From 1989 through 2009 it sold an additional 200,000 residences across various market segments such as luxury properties, mid-range homes, and retirement communities. It remains notably prominent as a builder of "active adult" residences under the Four Seasons brand.

Kevork relinquished the presidency in 1989 to his son Ara K. Hovnanian but remained CEO until retiring in 1997; he served as chairman until his passing in 2009.

Quality

Hovnanian Enterprises has encountered customer grievances related to construction standards. In 2005 the company admitted to problems at a development site in New Jersey after residents raised their concerns with government officials.

The affiliated mortgage division has also faced legal disputes. In 2008 the builder settled a $1.2 million class action lawsuit concerning construction near a former bombing range. Additionally, in 2007 the mortgage arm was subject to a class action lawsuit accusing it of violating the Real Estate Settlement Procedures Act (RESPA) by imposing penalties on buyers who selected title insurance providers outside Hovnanian’s preferred network.

Despite these issues, Hovnanian continues to focus on large-scale residential projects that serve varied markets as part of its strategy to maintain industry relevance and financial stability.

Charity

The K. Hovnanian Children's Hospital carries the name of the company's founder, Kevork Hovnanian, following the most substantial contribution in the hospital's 101-year existence, provided by his foundation.
In 2013, Ocean Medical Center launched an $82 million project to expand its emergency department and create additional facilities, with part of the funding coming from a $5 million gift by the Hovnanian family.

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