Residential Construction Loan Volume Moves Higher

Originally published on June 7, 2021, by Robert Dietz for the National Association of Home Builders.

Ending a period of volume decline that began at the end of 2019, the volume of residential construction lending posted an increase during the first quarter of 2021. Nonetheless, overall residential construction loan volume ended the year lower due to accelerated sales growth, which reduced outstanding loans at a faster rate.

The volume of 1-4 unit residential construction loans made by FDIC-insured institutions increased by 1.1% during the first quarter, as new home sales accelerated. The volume of loans increased by $0.8 billion at the start of the year. This loan volume expansion placed the total stock of home building construction loans at $78.2 billion.

Read More
Share this post: