https://voyageaustin.com/interview/hidden-gems-meet-ihor-stepanov-of-art-village
Tell us your story. How did Art Village get started, and how did the company become what it is today?
I would start this story not with how I got my visa and moved to the U.S., but with the day I flew to Austin to choose land. By then, the decision had already been made: we were going to build homes in Texas. That day, a realtor met me, and we immediately began looking at lots. As we drove, I told him that I had visited the U.S. many times and had always been surprised by how underrepresented European building technologies and the kind of bold, modern, stylish design that had long been standard in Europe were here. Of course, homes like that existed, but they were not widely available, especially in Texas. The realtor agreed with my observation, which strengthened my confidence that I had chosen the right direction. Over the next three days, we looked at many lots. I am good at visualizing and can usually imagine what could be built on a particular piece of land, but I did not like any of them.
On the third day, we visited a property that had not impressed me in the photos; it looked like nothing more than a grassy lot. But when I arrived, I literally froze. The property had an incredible, mesmerizing view over the canyon. It felt as though you were soaring above it like a bird. There were two adjacent lots. I immediately told the realtor, “I love it. Let’s make an offer.” I felt that this was our land, and we bought both lots. The first Art Village home was built right there on the hillside. Seven years later, I can see how accurately my intuition guided me. Since then, we have built 25 homes totaling more than 70,000 square feet. Seventeen of them are located on hillsides, unique sites requiring complex engineering solutions.
That first home largely defined the path we took. Today, Art Village has about ten projects underway. We build boutique homes starting at $3 million. Three key elements define our work. The first is exceptional design. Art Village’s international team includes Ukrainian, Polish, and American architects. Our projects have earned industry awards, including recognition at the Star Awards, and have also been recognized by the National Association of Home Builders, the American Institute of Building Design, and other organizations. The second element is the unique technologies and materials we source from around the world: kitchens from Ukraine, stone and tile from Turkey, and windows from Greece. Each home brings together innovative solutions and the expertise of specialists from different parts of the world. The third element is service. Our warranty department provides clients with 24/7 support. If something happens in a home, we respond and resolve the issue as quickly as possible.
When I first started working in the U.S., I had no experience with the American construction market. I initially signed a contract with a local construction company. The market was very active at the time, the company was overloaded, and everything I requested was constantly delayed. Eventually, I had to walk away from the contract, losing part of my investment. After that, I began looking for contractors myself. I sent 92 emails and received only two responses: one contractor could begin the foundation in six months, while the other could start in a year. But I kept looking. I drove through different neighborhoods, spoke with people at construction sites, and eventually found the team that built our first home. Finding qualified professionals remains a challenge today. Our projects are becoming increasingly complex: we choose sites with more challenging terrain, design homes on steep hillsides, and use new materials and unconventional technologies. For example, we recently imported an automated panoramic window from Greece that measures 36 feet wide and 14 feet tall. Specialists from five countries worked on it: Greece, Turkey, Ukraine, the U.S., and Italy. The more complex our projects become, the harder it is to find people with the necessary knowledge, experience, and sense of responsibility.
The second major challenge has been financing. I came to the U.S. as an immigrant with no local credit or business history. We invested our own funds, but we needed outside financing to grow. I had 64 lunches with bankers and private lenders, and none of them produced a result. We then invested my own money, brought in partners, and built our first home at a cost of about $1 million. We invited the lenders I had met to the open house, but only one came. He saw the result, believed in us, and began financing our projects. We still work with him today. Over time, securing financing has become easier, but affordable capital remains a challenge. Expensive financing, including through hard-money lenders, is not difficult to find. What is much harder is finding capital on terms that work for the business. High interest rates affect both builders and clients. Sometimes I have to personally guarantee financing; other times, we work with the client to find a bank offering better terms.
The third major challenge is bureaucracy: obtaining building permits and passing numerous inspections. When we submit permit documents, we almost always receive a list of comments, even though 70–80% of the requested items may already be addressed in the drawings. We point reviewers to the specific pages, some issues are cleared, and then new comments appear. For all 25 homes we have built, we have never received a permit on the first submission, even when the documents were prepared by a licensed architect. Passing an inspection on the first attempt is also extremely rare. Sometimes an inspector finds a detail that was missed; sometimes a new requirement is added. Either way, it affects the schedule. It is nearly impossible to predict exactly how long permitting and inspections will take. You cannot fully control these agencies, but you are still accountable to the client.
Another current challenge is changes to import tariffs. We use materials and technologies from different countries and calculate the full cost of each shipment in advance. However, a container may already be in transit when new tariffs take effect. As a result, the shipment can cost more than budgeted, making it difficult to determine the exact project price in advance. High interest rates, import tariffs, a shortage of qualified professionals, and timelines we cannot fully control are an endless set of challenges I deal with every day.
The main difference at Art Village is that we manage the entire process of creating a home, from selecting the land to choosing furniture and window treatments. Few builders and general contractors work this way. I chose this approach because it is the only way to create a truly cohesive project. When a client asks us to help select land, we first develop a detailed profile of who they are: we study their lifestyle, needs, and preferences and discuss where they want to live, how they envision their future home, and what they plan to do with the property in the coming years. On average, people stay in one home for five to seven years, so from the very beginning, we need to understand not only what kind of home the client wants, but also whether the project makes sense within the local market. We consider the client’s preferences, the characteristics of the site, and property values in the area. Even the most beautiful project must make sense as an investment.
Once the lot has been selected, all the information we have gathered is passed to our team of architects and designers. This ensures that the client’s vision is not lost between purchasing the land and designing the home. Our international team creates a unique design based on the client’s lifestyle and preferences and the characteristics of the location. At the same time, we consider the requirements of the relevant jurisdiction, prepare the documents, and obtain the necessary permits. The entire process is one continuous sequence: we help purchase the land, create the design, prepare the site, build the home, obtain the certificate of occupancy, and help select the furniture and window treatments. At the end, the client receives the keys to a completely move-in-ready home.
Our clients are successful people who are passionate about their work. They include doctors, entrepreneurs, attorneys, and executives who run departments at major technology companies. We manage the entire construction process so they do not have to become involved in dozens of technical and organizational issues. In one case, we met with a client only three times during the entire project: at the lot when he purchased the land, midway through construction when the foundation, framing, roof, and windows were complete, and at the finished home. The client lived in Houston, and we handled everything else ourselves. He continued focusing on his work while we fully managed the creation of his home.
I have also seen the opposite situation, where people try to assemble a project using many separate professionals: a realtor, an architect, a structural engineer, a septic system designer, and other contractors. Even when each professional is highly qualified, inconsistencies can arise if they work separately and no one coordinates the project as a whole. In one case, during the design stage, we identified a conflict between the planned placement of several windows and the slope of the property: the windows would have faced the hillside instead of the view. Because we identified it early, we were able to adjust the design before construction began. Issues like this can arise when everyone is responsible only for their own part and no one manages the project as a whole. We bring every stage and every specialist into one system, preserve the original vision, and take full responsibility for the final result. The client focuses on their work, while we create a unique boutique home for them.
Seven years of running Art Village have taught me three major lessons that continue to guide us. First, a general contractor must oversee and control the entire process. Even if the contractor is not responsible for the architectural design, they need to become involved as early as the land selection or design stage, coordinate all the specialists, and build a reliable chain in which everyone understands the overall goal. The earlier a general contractor enters the project and takes ownership, the lower the risk of costly mistakes. If the contractor assumes that someone else is responsible for a particular stage, a single mistake can cost $100,000 or more. For example, a structural engineer or architect may make an error in the drawings, and the general contractor may simply pass those drawings to the foundation contractor. The foundation is poured, and only later does it become clear that the framing does not fit it. Correcting that kind of mistake is extremely difficult and expensive. Every measurement and other critical detail must therefore be verified directly. Nothing in construction checks itself. My first principle is simple: take ownership of the entire process.
The second lesson is about selecting contractors: hire slowly and fire quickly. I have a clear vetting process. I always begin with a personal meeting and then visit one of the contractor’s active job sites to see how they work. If the site is disorganized, with bottles, tools, and construction debris scattered everywhere, I know my project will look the same. I pay attention to whether the person arrives on time, how well they prepare, how they communicate, and how they provide documentation. You can learn a great deal during the estimating stage, before a contract is even signed. If a contractor begins acting irresponsibly, repeatedly makes mistakes, or fails to honor commitments, you should not convince yourself that they will improve. If the first project goes badly, it is better to end the relationship. Some contractors have worked with Art Village since our first home and have completed all 25 projects with us. In other trades, we had to replace five or six contractors before finding the right people. Careful selection is what creates the foundation for a long-term partnership.
The third lesson is never to compromise on quality. My reputation matters more to me than short-term financial gain. If I see an uneven finish, a color mismatch, or any other detail that does not look right, I would rather redo the work at my own expense, even if it means losing money. A good example is Boho Residence, which later received numerous awards. We were choosing between two shades of beige for the exterior. After discussing the options, we selected one, and the contractors began painting the house. One morning, I arrived at the site and saw that in bright sunlight, the exterior looked yellow rather than beige, even though half the house had already been painted. I immediately stopped the work and asked the contractor how much it would cost to repaint the entire exterior. He quoted $15,000. I decided to spend the money and change the color. Today, I know it was the right decision: Boho Residence has received numerous awards and become one of our most recognizable projects. That experience reinforced an important principle for me: you cannot lie to yourself when you know something is not right. It is better to redo the work and accept a short-term loss while protecting quality and reputation. In the long run, you will still come out ahead.
