Top U.S Cities for a Ground-Up Construction Loan in 2024

David Chera
August 15, 2024

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Top U.S Cities for a Ground-Up Construction Loan in 2024

Securing a ground-up construction loan is a strategic move that hinges on the pulse of the market.

Anticipating the viability of future real estate market activity and demand is key to ensuring the successful sale of your newly built property at a competitive price. It’s essential for real estate investors to stay informed about both the national market dynamics and the more specific localized areas their operations are concentrated in.

Join us as we uncover the unique opportunities and potential that these cities hold for ground-up construction loans. From established urban centers to up-and-coming regional markets, discover the areas that are ripe for investment and poised for transformative development in 2024.

The National Scene

The U.S. housing market experienced a slowdown in 2023, with approximately 920,000 permits issued for single-family homes. This marks a decline from previous years, when the sector enjoyed a steady climb from the 2011 housing crisis.

While the real estate industry regained momentum between 2011 and 2021, it has yet to fully recover to the heights of 2005, when a robust 1.68 million single-family permits were issued.

While the number of perits issued across the states were generally down, there are still plenty of opportunities across the US for construction investment.

Let’s take a closer look at three markets that the statistics suggest will be particularly active on the construction front in the upcoming months, meaning funding opportunities will be abundant in these areas for savvy developers.

Austin, TX – A Booming Real Estate Market

New ground up construction homes in Austin Texas - Express Capital Financing

Austin has experienced meteoric growth since 2010, with its population expanding by an impressive 40%, putting it in top 15 most populated cities in the United States. This surge is largely attributed to a thriving tech industry and a vibrant cultural scene that have drawn residents from across the country. As a result, housing demand has skyrocketed.

To keep pace with this rapid population growth, Austin’s construction industry has been in overdrive. With over 35,000 new housing permits issued in the past year, builders are working diligently to provide new homes for an influx of residents.

Despite the high demand, Austin’s new home prices have remained relatively in line with the national average, presenting a unique opportunity for homebuyers seeking a balance of affordability and investment potential.

Raleigh, NC – A Strong Market with Growing Appeal

New ground up construction homes in Raleigh, NC - Express Capital Financing

Raleigh, a cornerstone of the Research Triangle, has established itself as a tech and innovation hub. The region’s robust job market, particularly in STEM fields, has attracted a steady stream of professionals. This economic vitality has fueled population growth and consequently, a surge in housing demand.

To accommodate this increased demand, Raleigh has seen substantial new construction activity, with over 19,000 new housing permits issued recently. Beyond economic opportunities, Raleigh offers a high quality of life, characterized by ample green spaces, mild weather, and a thriving community. These factors combined make it an increasingly desirable location for homebuyers.

Boise, Idaho – New Homes to Meet High Demand

A new ground up construction home in Boise, Idaho - Express Capital Financing

Boise has long captivated residents and visitors alike with its stunning natural beauty and vibrant outdoor lifestyle. From world-class hiking and skiing to whitewater rafting and fishing, there’s an adventure for everyone. Coupled with a thriving arts scene, Boise offers a unique blend of nature and culture.

This idyllic lifestyle, combined with the desire for more space and a slower pace of life, contributed significantly to Boise’s surge in popularity during the pandemic. As a result, the city experienced a rapid influx of new residents, overwhelming existing housing stock.

To meet this unprecedented demand, a construction boom ensued, with over 10,000 new home permits issued in the past year alone. This surge in development projects has created a diverse range of new-build options for homebuyers, catering to various lifestyles and preferences.

Let’s Build Together

Ready to break ground on your next big construction project? Don’t let financing hurdles hold you back. At Express Capital Financing, we specialize in helping real estate investors secure ground-up construction loans and are dedicated to helping bring your vision to life.

Our team of experts is ready to guide you through the process and provide customized financing solutions tailored to your specific needs.