Yellow jackets can build nests in a variety of environments. They can be found in rural, suburban, and urban areas but prefer to live in areas with a wooded edge. Yellow jackets like to live in meadows and grasslands as well.
Eastern and southern yellow jackets build nests underground in leaf litter, beds of pine straw, or in old logs. These nests are typically well hidden. Other yellow jackets such as the German yellow jacket will build aerial nests. While they prefer to build aerial nests in natural structures, it is not uncommon to find nests in man-made structures as well.
Yellow jackets make their nests out of pulp from wood fibers, plant stems, and paper. To make pulp, yellow jackets chew up these materials. When the materials mix with their saliva, they are able to make pulp. Typically in late spring, queen yellow jackets will start building nests using the pulp they can produce. Once the nest is formed, she will lay her first eggs that will grow to be workers. This process will continue until the queens and colonies die off in the fall.