Ryan Stroker is the Co-Founder and CEO of Avenue One, which bridges the gap between local real estate businesses and institutional capital.
Beneath the surface of America’s housing market lies a structural flaw: While the largest national homebuilders often get the bulk of attention—and capital—much of the market is made up of local entrepreneurs operating without access to the financing or support needed to thrive.
These local and regional builders are the backbone of American housing. They know their markets and customers deeply. They’re nimble, adaptable and embedded in the communities they serve. But they’re often operating at a disadvantage—because the systems that enable scale and liquidity weren’t built for them.
I’ve witnessed this reality in Charlotte, North Carolina, where I grew up. Local builders who crafted quality homes in our communities for generations were sidelined when access to development and construction capital dried up in 2008. The community and regional banks that once served as their primary financial partners largely retreated from financing these builders. Many builders never recovered. Some of those who managed to survive are now being squeezed—not because they lack expertise or experience, but because they’re systematically denied the financial tools and resources needed to compete and grow.
Meanwhile, housing demand continues to outpace supply across diverse communities throughout America. Local builders are embedded in many of these neighborhoods with deep community knowledge and relationships. They understand the specific needs of their markets in ways that are difficult to replicate. Yet they often can’t compete without access to the capital and infrastructure that larger players may take for granted.
And in today’s housing crisis, this critical bottleneck prevents us from building the homes Americans need.
Why Local Builders Are Being Left Behind
1. Capital doesn’t reach them.
Large builders have direct access to institutional and wholesale capital markets. Smaller operators often rely on community banks, many of which have pulled back significantly since 2008. The financing products that exist often don’t fit their needs.
2. Scale is working against them.
Bigger builders win on land, labor and materials. Local builders are agile but can’t compete when the playing field isn’t level. They may pay 10%-15% more for the same materials due to economies of scale, as larger companies can often access discounts for larger orders.
3. There’s no system to plug into.
The market for entry-level homes remains fragmented. Without infrastructure to streamline financing, underwriting and operations, institutional capital struggles to participate—and local builders are left out in the cold.
A New Path Forward
Addressing the housing crisis requires more than new construction. It means building systems that work for the full market—not just the biggest players.
We need to create an ecosystem where local builders can thrive without losing their independence. This means developing products designed specifically for their business models, technology that reduces their administrative burden while improving quality and infrastructure that connects them to national resources without forcing consolidation. So what does that actually look like?
Local builders are our trusted experts in building communities—not in financial engineering. They’re coordinating land deals, managing subcontractors, sourcing materials and navigating permitting. Every detail runs through them. Yet often, they’re forced to spend outsized time and energy chasing capital—distracted from what they do best: building homes and strengthening neighborhoods. Their success depends on access to consistent, reliable capital built for how they actually operate.
I think industry leaders have a responsibility to support their operational edge. That starts with developing financing solutions that reflect real-world constraints: variable project cycles, diverse deal sizes and hyperlocal dynamics. When capital matches their workflow, friction falls away, timelines shrink and more homes reach the market—faster.
The goal isn’t to scale local builders into national giants. It’s to remove the systemic barriers that hold them back. That means creating tools that reduce back-office drag, partnerships that protect their independence and capital that shows up on time. Not a takeover—an unlock.
I’ve found the most effective solutions involve choosing collaboration over competition. Smart builders are already figuring this out. Regional lumber yards let competitors pool buying power for better material pricing than any could secure alone. Equipment sharing networks rotate expensive machinery between projects, reducing the capital burden on individual builders. Joint insurance pools spread risk across groups, cutting premiums for everyone.
The same principle works for operational challenges. Permit application consortiums can help builders collaborate on municipal relationships, streamlining approval processes that slow everyone down. Subcontractor rating systems let builders share performance data, improving quality control across the market. Even labor shortages become manageable when builders create joint apprenticeship programs that expand the skilled worker pipeline.
The key insight: When external pressures—material costs, labor shortages, regulatory complexity—threaten everyone, working together can create more value than fighting alone for shrinking resources.
Local builders aren’t just players in the housing market. They’re a significant part of the field. And investing in their ability to thrive—on their terms—could be the fastest, most direct path to the housing supply this country needs.
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