Skip to main content

Construction Lending Outlook: Strong Sentiment and Fundamentals Amid Growing Uncertainties

Mixed market signals call for sound risk management tools

Many lenders have turned to construction lending in the search for increased yield but increasing uncertainties have made it harder to predict and manage construction risks. Development is still thriving, and there is no shortage of construction projects available for financing; however, developers and lenders are becoming more cautious. Strategies to control spiraling costs, completion delays and other sources of default have become even more important in underwriting and managing new construction loans.

To read the full construction lending market analysis and blog, click here.