Tight post-recession lending conditions may be loosening for home builders
Access to capital has been especially difficult for small private builders, who are responsible for nearly two-thirds of single-family home construction across the country.
By Chris Kirkham | The Wall Street Journal
The volume of U.S. home construction loans grew at the fastest rate in more than two years in the third quarter, according to federal data, a sign that tight postrecession lending conditions might be easing for homebuilders.
After the housing crash, banks that historically lent money for acquiring land and building new homes cut back significantly.
Access to capital has been especially difficult for small private builders, who are responsible for nearly two-thirds of single-family home construction across the country. Analysts often cite the credit challenges as a prime factor in holding back the supply of new homes.
