Market Demand for Architectural Design Services Continue to Slow in the U.S.

Market Demand for Architectural Design Services Continue to Slow in the U.S.

Commercial News » Washington D.C. Edition | By David Barley | December 30, 2022 8:31 AM ET

According to a new report from the American Institute of Architects, demand for design services from architecture firms continued to decrease in November 2022.

The pace of decline during November accelerated from October, posting an Architecture Billings Index (ABI) score of 46.6 from 47.7 (any score below 50 indicates a decline in firm billings). The pace of inquiries into new projects slowed, but remained positive with a score of 52.0, however new design contracts remained in negative territory with a score of 46.9.

Thumbnail image for Kermit-Baker-headshot.jpg
Kermit Baker

"Given the slowdown in new project work, many architecture firms will rely on their near record levels of backlogs to support revenue," said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. "Still, firm leaders remain largely optimistic about future business trends. Almost two-thirds of architecture firms project that 2023 will be either a good year or great year for their firm."  

Key ABI highlights for November include:

  • Regional averages: South (50.5); Midwest (47.6); West (45.8); Northeast (42.4)
  • Sector index breakdown: mixed practice (51.5); institutional (47.7); multi-family residential (46.1); commercial/industrial (44.2)

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