US Acquisition, Development, and Construction Loans Decline in Q4

In 2025Q4, the total volume of US acquisition, development, and construction (AD&C) loans declined, according to data released by the Federal Deposit Insurance Corporation, with analysis from the National Association of Home Builders (NAHB).

NAHB said the total level of outstanding AD&C loans fell to $456.3 billion in Q4, down 1.5% from Q3. The quarterly decline was led by a drop in other real estate development loans, which fell 1.8% to $365.2 billion.

Meanwhile, the volume of 1–4 family residential construction and land development loans edged down 0.2% from the previous quarter to $91.1 billion. Despite the quarterly decline, the outstanding amount was up 1.7% from a year earlier, marking the second consecutive quarter of year-over-year growth.

NAHB’s AD&C Financing Survey also indicated continued tightening in credit conditions during Q4, even as financing rates declined following two Federal Reserve rate cuts in the quarter.

NAHB noted that FDIC figures represent the stock of loans rather than underlying lending flows and therefore provide only a partial view of market conditions. Even so, lending volumes remain well below historical levels, with outstanding 1–4 family residential AD&C loans about 56% below the peak of $204 billion recorded in 2008Q1. NAHB said that alternative financing sources, including equity partners, have increasingly supplemented traditional construction lending in recent years.