Dolichovespula species such as the aerial yellowjacket, D. arenaria, and the bald-faced hornet, tend to create exposed aerial nests. This feature is shared with some true hornets, which has led to some naming confusion.

Vespula species, in contrast, build concealed nests, usually underground.

Yellowjacket nests usually last for only one season, dying off in winter. The nest is started by a single queen, called the "foundress". Typically, a nest can reach the size of a basketball by the end of a season. In parts of Australia, New Zealand, the Pacific Islands, and southwestern coastal areas of the United States, the winters are mild enough to allow nest overwintering. Nests that survive multiple seasons become massive and often possess multiple egg-laying queens.