Yes! Wasps can build their nests underground, so long as there is some kind of surface to attach the nest to. This can be a foundation of loose soil, a wall, or a piece of wood. The wasps will excavate a series of tunnels below the surface, and will build a series of cells in which to raise their young.
Yellow Jacket MASSIVE Ground Nest STING Wasp Nest Removal ASMR
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