Rabbet Releases 2025 State of Construction Finance Report: Industry Pushes for Efficiency Amid Economic Uncertainty and Rising AI Adoption

AUSTIN, Texas, Aug. 20, 2025 (GLOBE NEWSWIRE) -- Rabbet, the leading construction finance platform, today released its 2025 State of Construction Finance Report, offering a comprehensive look at the challenges and opportunities shaping the real estate development and finance ecosystem. Now in its eighth year, the annual survey draws insights from developers, owners, lenders, capital partners, and service providers across the U.S.

The 2025 report arrives during a period of heightened volatility. With inflation, interest rate uncertainty, and ongoing labor and supply chain pressures, construction stakeholders face mounting complexity in how projects are financed and delivered.

Key findings from the report reveal an industry at an inflection point:

Efficiency as the new growth strategy – Nearly four in ten respondents cited increasing capacity without growing headcount as a top operational priority. Teams currently spend almost 25 hours a month on administrative tasks, signaling a major opportunity for automation.
AI adoption is accelerating – 94% of organizations are actively evaluating or planning to adopt AI tools, highlighting strong interest in technology that could streamline workflows and improve decision-making.
Persistent cost overruns – Developers point to scope creep and design changes as primary drivers of budget issues, while lenders cite inaccurate estimates.
Communication gaps remain costly – Both developers and lenders report that miscommunication contributes to inaccurate budgets, delayed decisions, and stalled disbursements. The most common culprits include disconnected tools like email and Excel, inconsistent processes, and poor documentation.

The report also highlights the measurable impact of technology on financing workflows. For example, developers using Rabbet fund draws 31.5% faster, while lenders fund 33% faster, significantly reducing friction and delays.

About the Report

The State of Construction Finance 2025 survey includes insights from 54 respondents across the project lifecycle, representing capital providers with loan volumes from under $100 million to over $1 billion, as well as developers and owners managing portfolios of varying sizes across residential, multifamily, office, retail, healthcare, and hospitality projects.

About Rabbet

Rabbet connects people, data, and systems to maximize real estate outcomes. Since 2017, Rabbet has built an intuitive platform trusted to manage over $130B in real estate capital, backed by Y Combinator, QED Investors, Camber Creek, and Goldman Sachs.

Download the full report here: https://rabbet.com/reports/state-of-construction-finance-2025

Media Contact:
Paco Banuelos
pbanuelos@rabbet.com
828-962-3294

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