Client interest in larger homes has increased over the past 12 months for the first time in five years, according to the newly published Home Design Trends Survey carried out by the American Institute of Architects (AIA). The survey results, free to view here, also note a sharp rise in demand for rental units and accessory dwelling units (independent dwellings located on the same lot as an existing dwelling).

Other notable trends include a significant increase in demand for the finishing of unfinished spaces such as basements, attics, and garages, and a dramatic increase in the popularity of outbuildings such as sheds, barns, and pool houses.

The number of respondents noting an increase in the square footage of housing projects rose 27% from 2020, with particular emphasis on custom/luxury/upper-end homes and additions/remodels. Meanwhile the popularity of rental units and accessory dwellings rose 20% from 2020, while the number of architects reporting an increase in accessible and elderly-friendly design continues to surge, albeit at a slightly slower rate than 2020.

The number of architects reporting an increase in outdoor living spaces rose by 21% versus 2020, as did the number of architects reporting an increase in demand for outbuildings including barns, sheds, and pool houses.

The report also details residential architecture firm business conditions for Q2 of 2021, which found that all custom residential sectors reported unprecedented growth, with home improvement reporting the strongest gains. Project billings sat at 68.4; the AIA notes that any score above 50 indicates growth in firm billings. Project inquiries remained strong at 68.7, while design contracts also increased to 66.7.

“Since households are doing more at home, they have been looking for more space during the pandemic. This has included focusing more activities outdoors, and adding other buildings to their property,” says AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “The overall strength of the residential market has driven project backlogs at residential architecture firms to pre-pandemic levels.”

The AIA Home Design Trends Survey is conducted quarterly using a panel of over 500 architecture firms with a strong presence in the residential sector. Each quarter, the report focuses on a specific area of home trends with accompanying business conditions. Q1 covers “Kitchen and Bath”; Q2 covers “Home and Property Design”; Q3 covers “Home Features”; and Q4 covers “Neighborhood and Community Design.” The latest edition, and archives of previous surveys, can be found on the official website here.

The report is the latest in a number of studies and forecasts for how the industry is being affected by the COVID-19 pandemic. Last week, the AIA published a report examining the impact of COVID-19 on architecture business conditions, while the National Association of Realtors published a report noting that the U.S. needs to construct an additional 5.5 million housing units to compensate for a slowdown in housebuilding in recent decades.

Earlier this month, NCARB published a report examining the impact of COVID-19 on architectural licensing, noting a 40% decrease in the number of newly licensed architects during 2020 relative to the previous three-year average. Software giant Autodesk has meanwhile published its own construction outlook for 2021, setting out the risks and opportunities for design and construction businesses across the U.S.