Graph by Archinect using data provided by the American Institute of Architects
The latest AIA/Deltek Architecture Billings Index, released this morning, offers a mixed snapshot of the architecture market: While the June score of 47.3 marked a nearly three-point improvement from May, it still signals that billings are declining at a majority of firms. The industry remains stuck in one of the longest downturns in the ABI’s history, with 41 consecutive months without broad-based billings growth.
On the brighter side, inquiries for new projects picked up again, and newly signed design contracts were essentially flat — suggesting demand may be stabilizing.
The slowdown continues to put pressure on firm backlogs, which dipped from an average of 6.6 months in Q1 to 6.3 months in Q2. Smaller firms and those focused on multifamily housing saw some of the steepest declines, raising concerns that firms with fewer resources could face more challenges if new work remains limited. Billings fell across most regions and specializations, with the South holding steady while multifamily firms experienced a sharper recent downturn.
“The uncertainty over the conflict in Iran, along with high interest rates and significant labor shortages, will continue to weigh on construction — and architect billings over the next several months,” AIA Chief Economist Richard Branch commented.
Beyond the immediate market pressures, the ABI’s latest survey points to growing interest in resilient design. Nearly half of firm leaders said their practices have worked on resilient design projects in the past five years, with education, multifamily housing, healthcare, and civic clients showing the strongest demand. Looking ahead, firms expect resilient design projects to represent about 13% of their billings within five years — a sign that climate adaptation and long-term performance are becoming increasingly central to architectural practice.
June ABI Highlights
Regional averages: South (49.5); West (45.6); Midwest (45.1); Northeast (44.9); Sector index breakdown: institutional (47.4); commercial/industrial (46.7); multifamily residential (45.6); mixed practice (firms that do not have at least half of their billings in any one other category) (42.7)Project inquiries index: 56.1Design contracts index: 49.8
Archinect has covered contributing factors to the ongoing economic uncertainty for architecture firms, including unpredictable trade tariff policies and volatile construction material pricing.
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How has business been feeling in your region and market? Do the ABI numbers reflect what you are seeing on the ground? Share in the comments below.
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