If you’re an investor looking to build wealth from the ground up, Virginia is the place to start.
With zoning shifts unlocking new build potential and demand rising across key markets, there’s never been a better time to get your project off paper and onto a job site.
At Park Place Finance, we work with developers and investors across Virginia who are ready to take control of their portfolio and capitalize on today’s construction opportunities.
Whether you’re building your first duplex or your 50th fourplex, we’ll help you finance smarter, move faster, and scale confidently.
Start your application with Park Place FinanceWhy ground up construction makes sense in Virginia
The Virginia housing market continues to face limited resale inventory, driving demand for new construction.
Investors who can build from the ground up are positioned to fill this supply gap—and profit from it.
Why to consider ground-up construction in Virginia:
- Zoning reform: In places like Arlington County, local governments are adopting or debating zoning changes that permit duplexes, townhomes, and small multifamily in areas previously limited to single-family homes.
- Urban infill demand: Submarkets like Northern Virginia and Richmond are seeing strong buyer and renter interest in walkable, transit-connected neighborhoods.
- Renter demand is high: With high home prices and limited listings, more residents are renting longer—creating opportunity for build-to-rent developers.
- Modern product wins: New builds with energy-efficient features, flexible floor plans, and modern amenities tend to sell faster and rent for more.
- Customization: Ground-up construction allows investors to design properties specifically for tenant preferences or resale demands.
From a long-term perspective, ground-up construction offers control, customization, and strong exit strategy options.
Whether you’re a seasoned builder or branching out from flips, the potential for higher margins and faster lease-ups is worth the added complexity.
Key markets for new development
Not all parts of Virginia are equally ripe for new builds.
Focus on these high-potential submarkets:
Northern Virginia (NoVA)
- Transit-accessible townhomes are hot commodities.
- Demand is surging near metro lines in Arlington, Alexandria, and Fairfax.
- “Missing Middle” zoning reforms now permit duplexes, triplexes, and townhomes in many lots once reserved for single-family homes (though the policy is still navigating legal challenges).
- Investors are targeting infill opportunities within 30–60 minutes of D.C. for workforce housing.
Richmond metro
- One of Zillow’s “hottest U.S. markets” for 2025.
- Strong price appreciation, especially in neighborhoods like Church Hill and Northside.
- Infill lots and teardown homes make excellent ground-up opportunities.
- Emerging neighborhoods are seeing new coffee shops, breweries, and infrastructure projects—signals of gentrification.
Hampton Roads and coastal cities
- Military bases in Norfolk, Virginia Beach, and Newport News create stable demand.
- Popular for build-to-rent near naval installations and hospitals.
- Strong tourism also makes these areas suitable for short-term and mid-term rental strategies.
College towns
- Charlottesville, Lynchburg, and Blacksburg have high student and workforce housing demand.
- Mid-term rentals near universities are in short supply.
- Investors are building duplexes or four-plexes for co-living models targeting grad students and traveling nurses.
Each region offers a unique combination of appreciation potential, zoning feasibility, and tenant/buyer demand.
Understanding your submarket is important. Conduct demographic, job market, and rent growth analysis before breaking ground.
How to finance ground-up projects in Virginia
A common challenge for investors is finding the right financing. Traditional banks may shy away from spec builds or require extensive experience.
That’s where private construction loans from lenders like Park Place Finance come in.
Features of Park Place Finance ground up construction loans:
- Loan amounts: $150,000 to $6 million
- Terms: 12–24 months
- Loan-to-cost (LTC): Up to 85%
- After-repair value (ARV): Up to 70%
- Fast closings: As little as 7–10 business days
- Permit-ready: Permits and plans required before funding
- Soft cost reimbursement: Up to 5% of construction costs available
Even if you’re new to building, you may qualify if you use a licensed general contractor.
And if you’re already mid-construction and need a rescue loan, PPF also offers mid-build financing.
Notable construction loan benefits
Construction loans typically have no prepayment penalties, giving you the flexibility to sell or refinance as soon as your project is complete. This opens the door to faster turnaround and less interest carry.
Additionally, Park Place offers a builder-friendly experience: minimal red tape, responsive underwriting, and dedicated advisors who understand your timeline.
Permitting, zoning, and local considerations
Virginia’s permitting processes can vary widely by jurisdiction.
Here’s how to stay ahead:
Zoning
- Check with local planning departments early.
- In areas like Arlington, new rules now allow more density in residential zones.
- Understanding zoning overlays, setbacks, and height restrictions is critical before you buy land.
Permits
- You’ll need building permits, site plans, and possibly stormwater management plans.
- In most counties, expect 4–12 weeks from submission to approval.
- Many localities now offer online portals for faster plan review and fee payments.
Utilities & infrastructure
- Confirm utility access (water, sewer, electric) before closing on the lot.
- Some jurisdictions may offer incentives for infill or workforce housing.
- You may be responsible for tap fees, curb cuts, or utility extensions—budget accordingly.
Tips to streamline permitting:
- Hire local architects and civil engineers.
- Pre-submit designs for review.
- Use general contractors familiar with local codes.
- Attend planning commission meetings to stay ahead of policy shifts.
Best practices to maximize ROI
Your return depends on more than just building—it’s about building smart.
Here’s how to protect your margins:
- Use draw schedules tied to major milestones (foundation, framing, etc.).
- Finance soft costs (like design and permits) to preserve cash.
- Choose high-demand locations with nearby schools, transit, or employers.
- Design for flexibility—3-bedroom units rent better than studios.
- Plan for delays by building contingency time and budget into your timeline.
- Use builder-friendly materials that balance durability with cost efficiency.
- Know your comps—study nearby properties to guide layout, pricing, and features.
- Partner with a knowledgeable realtor for presales or lease-up to reduce hold time.
Don’t overlook your exit strategy: Build-to-rent? Sell individual units? Refinance into DSCR or conventional loans? Knowing your endgame protects your upside.
FAQ: Ground up construction in Virginia
Most Park Place borrowers need a minimum 680 FICO. Higher scores help lower rates.
Yes—if you have permits and plans, Park Place may finance both under one loan.
Closings can take 7–10 business days with complete documents.
You can still qualify by working with a licensed general contractor.
LTC (loan-to-cost) is based on project cost, while ARV (after-repair value) is based on projected market value when finished.
Start building your future with ground up construction in Virginia
With strong demand, favorable lending, and zoning evolution, ground-up construction in Virginia is one of the most promising paths for investors and developers.
It’s a strategy that not only creates new housing but builds long-term wealth.
Whether you’re a seasoned builder or an investor ready to scale, Park Place Finance provides the flexible funding and support to bring your next project to life.
Start your application for ground up construction financing with Park Place Finance.