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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
Architecture firm billings growth softened in December but remained positive for the fifteenth consecutive month, according to a new report released today from The American Institute of Architects (AIA). AIA’s Architecture Billings Index (ABI) score for December was 50.4 compared to 54.7 in November. Despite the positive billings, a softening in growth was seen across several regions and sectors, as well as in project inquiries and design contracts. — AIA
“Given the concerns over the ongoing tariff situation, it is not surprising to see a bit of a slowdown in progress on current projects,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “Growing anxiety over unstable business conditions and the partial shutdown of the government may... View full entry
Architecture firm billings growth expanded in November by a healthy margin, according to a new report today from The American Institute of Architects (AIA).
AIA’s Architecture Billings Index (ABI) score for November was 54.7 compared to 50.4 in October. With the strongest billings growth figure since January and continued strength in new project inquiries and design contracts, billings are closing the year on a strong note.
— AIA
“Despite some concerns about a potential economic downturn, architecture firms continue to report strong billings, inquiries, and new design contracts,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “For the coming year, concerns about the economy among architecture firm leaders tend... View full entry
A new report by real estate agency Knight Frank finds that 153 properties in six cities’ “ultra-prime” category sold for a combined total of $6.6 billion in the last year, or an average of $43 million per house.
Hong Kong led the world in sales over $25 million, followed by New York, then London.
— Bloomberg
Market slowdown? What market slowdown? While the real estate sector in the U.S. and certain global regions (looking at you, Brexit-y London) is seeing signs of cooling, including the upper-scale segment, there has been no significant impact on the uppest-scale cream slice of the industry with... View full entry
Architecture firm billings growth softened in October but remained positive for the thirteenth consecutive month, according to a new report today from The American Institute of Architects (AIA).
AIA’s Architecture Billings Index (ABI) score for October was 50.4 compared to 51.1 in September. With continued strength in new project inquiries, billings are expected to remain steady into the coming months.
— AIA
"The effects of the 2018 hurricane season are the probable cause of the temporary contraction in billings in the Southern region. This decrease in demand for design services is limited, and the region should rebound over the next several months," said AIA Chief Economist Kermit Baker.The American... View full entry
Architecture firm billings growth slowed in September but remained positive for the twelfth consecutive month, according to a new report today from The American Institute of Architects (AIA).
AIA’s Architecture Billings Index (ABI) score for September was 51.1 compared to 54.2 in August. However, continued strength in new projects coming into architecture firms points to billings growth in the coming months.
— AIA
“Similar to the strong conditions we’ve seen nationally, architecture firms located in the Midwest and Southern regions of the country continued to report very strong billings in September,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “However, billings were soft at firms located... View full entry
American construction workers’ average wage has risen above $30 per hour for the first time, and the numbers employed have hit nearly 7.3 million, a level not seen since before the financial crisis, official statistics show. [...]
“However, the pool of unemployed workers with construction experience has nearly evaporated, pushing up contractors’ costs and adding to project completion times.”
— Global Construction Review
While positive economic indicators have had the U.S. construction sector thriving for a prolonged period now, AEC employers are increasingly feeling the pinch when it comes to finding qualified workers. "The tightening labour market poses a problem for companies looking to expand their... View full entry
