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Demand for Architectural Services in U.S. Remains Resilient Despite Slowing Market

Demand for Architectural Services in U.S. Remains Resilient Despite Slowing Market

Commercial News » New York City Edition | By WPJ Staff | August 30, 2022 8:15 AM ET


According to a new report from The American Institute of Architects, for the eighteenth consecutive month architecture firms reported increasing demand for design services in July 2022.

The AIA Architecture Billings Index (ABI) score for July was 51.0. While this score is down from June's score of 53.2, it still indicates stable business conditions for architecture firms (any score above 50 indicates an increase in billings from the prior month). Also in July, both the new project inquiries and design contracts indexes moderated from June but remained strong with scores of 56.1 and 52.9 respectively.  

Kermit-Baker-headshot.jpg
Kermit Baker

"Despite architecture services employment recently surpassing pre-pandemic levels, the ABI score this month reflects the slowest growth since January, and marks the fourth straight month with a lower score than the previous month, indicating a slowing trajectory in billings activity," said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. "With a variety of economic storm clouds continuing to gather, we are likely looking at a period of slower growth going forward." 

Key ABI highlights for July 2022 include:

  • Regional averages: South (53.6); Midwest (52.2); West (51.7); Northeast (48.4)
  • Sector index breakdown: multi-family residential (52.8); commercial/industrial (52.2); mixed practice (52.1); institutional (49.6)


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