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The latest compensation survey conducted by the American Institute of Architects (AIA) has found that in recent years, as demand for design services has increased and unemployment has fallen to historic lows, average pay for architecture staff has increased by over $10,000. The report credits a... View full entry
Demand for design services in July remained essentially flat in comparison to the previous month, according to a new report released today from The American Institute of Architects (AIA).
AIA’s Architecture Billings Index (ABI) score of 50.1 in July showed a small increase in design services since June, which was a score of 49.1.
— AIA
"The data is not the same as what we saw leading up to the last economic downturn, but the continued slowing across the board will undoubtedly impact architecture firms and the broader construction industry in the coming months," said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. "A growing... View full entry
The No. 1 business issue for home builders, remodelers, and land developers continues to be access to skilled labor. According to NAHB analysis of Bureau of Labor Statistics (BLS) data, as of April of this year there were 404,000 open construction sector positions. Not only is this level of unfilled jobs in the construction industry at a post–Great Recession high, the current estimate is the highest ever reading for this data series, which runs back two decades. — Builder
According to Builder, "the intensity of the labor shortage among builders grew more intense during 2018 and 2019." The challenges of this shortage on the construction industry bring higher costs, delays, and lower output on projects. Economist, Robert Dietz, Ph.D. suggests that, "Wage growth... View full entry
With affordable homes already in short supply around the U.S., house-hunters this spring faced another challenge: surging prices. Median home prices in the second quarter surged to a record high $266,000 for single family-homes and condos, according to a recent report from property research firm ATTOM Data Solutions. That's up 6% from about $250,000 a year ago. — CBS News
"U.S. homeowners who sold in the second quarter of 2019 realized an average home price gain since purchase of $67,500, up from an average gain of $57,706 in Q1 2019 and up from an average gain of $60,100 in Q2 2018," states the July ATTOM report. The locations with the highest average home seller... View full entry
Despite recent warnings from the American Institute of Architects (AIA) of weakening billings numbers among architecture firms, the organization continues to forecast positive economic growth for the construction industry into 2020, with several caveats. According to AIA's Consensus... View full entry
Challenging conditions in the U.S. housing market, along with tighter currency controls by the Chinese government, caused a stunning drop in foreign demand for American homes.
The dollar volume of homes purchased by foreign buyers from April 2018 through March 2019 dropped 36% from the previous year, according to the National Association of Realtors.
— CNBC
NAR’s Profile of International Transactions in U.S. Residential Real Estate 2019 survey reports that "for the seventh consecutive year, China exceeded all other countries in terms of dollar volume of purchases, buying an estimated $13.4 billion worth of residential property, a 56% decline from... View full entry
Demand for design services at architecture firms decreased in June in comparison to the previous month, according to a new report today from The American Institute of Architects (AIA).
AIA’s Architecture Billings Index (ABI) score for June was 49.1, which is down from 50.2 in May. Any score below 50 indicates a decrease in billings. Both the project inquiries index and the design contracts index continued to soften in June but remained positive.
— AIA
"With billings declining or flat for the last five months, it appears that we are settling in for a period of soft demand for design services," said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. "With the new design contracts score reaching a 10-month low and the project inquiries score hitting... View full entry
The overall size of new homes peaked in 2016 for this cycle and for the last three years has continued to moderate, according to new survey results from the American Institute of Architects (AIA).
The Home Design Trends Survey for the second quarter of 2019—focusing on home and property design—also found that homeowners continue to place a priority on accessibility features.
— AIA
"With home sizes plateauing and lot sizes continuing to decline, it isn’t shocking to see where that additional focus is going," commented AIA Chief Economist Kermit Baker, PhD, Hon. AIA. "Homeowners want more flexibility in their space, both inside and outside the house, and they want to use... View full entry
Nearly 300 coal-fired power plants have been "retired" since 2010, according to the Sierra Club. It's a trend that continues despite President Trump's support for coal. That has left many communities worried that those now-idled places will simply be mothballed. — NPR
In an NPR segment, which aired in May, Jeff Brady discusses the Department of Community and Economic Development's plans to reuse and redevelop retired coal plants. Plans of action are listed in a "playbook" that outlines the attributes of listed coal plants and the pros and cons of each site... View full entry
Demand for design services in May remained essentially flat in comparison to the previous month, according to a new report [...] from The American Institute of Architects (AIA).
AIA’s Architecture Billings Index (ABI) score for May showed a small increase in design services at 50.2, which is slightly down from 50.5 in April. Any score above 50 indicates an increase in billings. Both the project inquiries index and the design contracts index softened in May but remained positive.
— AIA
"The last four consecutive months, firm billings have either decreased or been flat, the longest period of that level of sustained softness since 2012," said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. "While both inquiries into new projects and the value of new design contracts remained... View full entry
Following a sizable decrease in demand for design services in March, the April Architecture Billings Index (ABI) climbed back into positive territory according to a new report today from The American Institute of Architects (AIA).
AIA’s ABI score for April showed a small increase in design services at 50.5 in April, which is up from 47.8 [...] Despite this and the positive overall billings score, most regional and sector indicators continue to display decreasing demand for design services.
— AIA
"In contrast to 2018, conditions throughout the construction sector recently have become more unsettled," said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. "Though we may not be at a critical inflection point, the next several months of billing data will be indicative of the health of the... View full entry
Following consistently increasing demand for design services for over two years, the Architecture Billings Index (ABI) dipped into negative territory in March, according to a new report [...] from The American Institute of Architects (AIA).
The ABI score for March was 47.8, down from 50.3 in February. Indicators of work in the pipeline, including inquiries into new projects and the value of new design contracts remained positive.
— AIA
"Though billings haven’t contracted in a while, it is important to note that it does follow on the heels of a particularly tough late winter period for much of the country," said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. "Many indicators of future work at firms still remain positive... View full entry
Architecture firm billings growth softened in February but remained positive, according to a new report today from The American Institute of Architects (AIA).
AIA’s Architecture Billings Index (ABI) score for February was 50.3, down from 55.3 in January. Indicators of work in the pipeline, including inquiries into new projects and the value of new design contracts remained positive.
— AIA
"Overall business conditions at architecture firms across the country have remained generally healthy,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “Firms in the south recorded continued strong design activity, likely reflecting a healthy regional economy and ongoing rebuilding from... View full entry
The economy is headed for a slowdown, but its effect on the housing market won’t be as tumultuous as the downturn that led to the Great Recession, Metrostudy chief economist Mark Boud told a standing room-only audience today at the 2019 Metrostudy Housing Outlook Breakfast.
Boud sees overinflated housing prices causing bubbles in some hot markets where affordability is a top issue.
— Builder
In his recent talk, Metrostudy chief economist Mark Boud points out the economic indicators that will bring about the inevitable correction to the current boom cycle but does not predict a collapse of the housing market as dire as in the years following the 2008 financial crisis. "We predict that... View full entry
Starting the year on a strong note, architecture firm billings growth strengthened in January to a level not seen in the previous twelve months according to a new report released today from The American Institute of Architects (AIA).
AIA’s Architecture Billings Index (ABI) score for January was 55.3 compared to 51.0* in December. Indicators of work in the pipeline, including inquiries into new projects and the value of new design contracts, also strengthened in January.
— AIA
“The government shutdown affected architecture firms but doesn’t appear to have created a slowdown in the profession,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “While AIA did hear from a few firms that were experiencing significant cash flow issues due to the shutdown, the... View full entry
