Private credit gains share in US construction financing, OakNorth says

• OakNorth's analysis shows private lenders supplied approximately 34% of US construction financing in 2025, up from 20% in 2023.
• Banks increasingly finance private lenders at 60-65% loan-to-cost rather than compete directly at 75-80%.
• Multifamily loan-to-cost ratios have approached 90% in some deals, leaving less room for delays, cost increases or weaker exits.
• Sunbelt multifamily acquisitions made in 2021 and 2022 at low rates face refinancing challenges; extensions without credible execution plans defer problems.
• The next 12-18 months could expose aggressive underwriting assumptions, putting deals reliant on cheap debt and thin equity under further pressure.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Oaknorth Bank plc published the original content used to generate this news brief on November 10, 2026, and is solely responsible for the information contained therein.