Residential Market Set to be Derailed by Global Pandemic

The momentum building in the housing market since the Great Recession has completely reversed itself over the course of just a few weeks, according to a new report today from the American Institute of Architects (AIA).

The report reveals that revenue at residential architecture firms for March is estimated to have been 15 percent below their expectations at the beginning of the month, while April is expected to be almost 20 percent below previous expectations.

“Just as the residential sector was getting back on a solid foundation, it has been hit with this setback,” said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. “Until we have a better understanding of when the homebuilding and home improvement industries can resume their normal pace, demand for residential design activity is expected to suffer.”

Other key findings from the survey of residential architects include the following:

These findings build on a separate recent survey of architecture firms serving the nonresidential buildings market. Visit AIA’s website for more COVID-19 resources for members.