KBB - March 2009 - (Page 16)

Consumer Slow Times AIA’s third quarter survey reﬂects economic downturn The American Institute of Architects (AIA) conducts a quarterly survey of 500 architectural ﬁrms practicing in the residential market. The subject of the survey varies, ranging from business activity in residential markets to development features and trends, to materials, home features and kitchen and bath trends. The third quarter survey polled architects on a potpourri of topics, including regional market and business trends, design features, popular products and systems. and home remodelers were already seeking out energy conservation features and their interest has not waned. Green design continues to influence the choice of materials and construction in projects where homeowners request energy-efﬁcient and low-maintenance solutions. In fact, more than 75 percent of the architects surveyed reported requests for these features. Sustainable design solutions and products are also on the shopping lists of and being displayed in model homes. These include permeable paving, which reduces storm-water run-off, as well as recycled paving and landscape materials. Recycled, reclaimed, salvaged and sustainable materials continue to be highly popular, as are sustainable and recycled rooﬁng products, which have gathered interest as homeowners become more aware of their availability. Helping to push interest on DOWN & UP • Trends. Business trends in residential markets continue to reﬂect the weaknesses in the overall housing sector of the economy. Trends as late as the third quarter of 2007 were still showing slowing yet positive growth. Moving into 2008, the trends slipped into decline and the downturn Business trends in residential markets continue to reﬂect the weaknesses in the overall housing sector of the market. increased as the year wore on. Fifty percent of the architectural ﬁrms surveyed reported decreased billings of at least 5 percent, while 57 percent reported declines in inquiries regarding new work. The most positive results once again came from the Northeast and Midwest regions, where the downturn in business was not as severe, thanks to higher percentages of remodeling and renovation work. By contrast, the Southern and Western regions were the most severely affected by the downturn during the past year, despite having reported, until recently, the most activity in new residential construction. • Segments. While all segments of the residential housing market were showing declines in business in the past 12 months, the greatest reduction took place in the second-home and vacation-home markets. These market segments were followed closely by those for ﬁrst-time buyers, affordable homes, move-up homes, townhouses and condos, and custom homes. New home construction that targets ﬁrst-time buyers didn’t show a signiﬁcant difference from last year’s performance, perhaps indicating that, at least, this market segment is about to reverse in the coming months. A year ago, homeowners were investing in their existing properties with signiﬁcant activity in remodeling, kitchen and bath renovation projects and home additions. Not so this year. That market segment has experienced a sizable drop, which can be attributed to decreases in home equity and the inability of homeowners to ﬁnance remodeling projects. • Green. Increased energy, gas, oil and electricity costs continue to inﬂuence design trends in the housing market. A year ago, homebuyers this front, developers are willing to customize to attract buyers and reduce their inventory of unsold properties. SIMPLICITY IS KEY At the same time, buyers seem to be less concerned with design and detail, paying less attention to property appearance and gravitating toward simplicity in look and aesthetic. Similarly, contemporary and streamlined styles are gaining in preference over those that are more traditional. Not surprisingly, homeowners are also showing an afﬁnity for homes that are more affordable and pared down. The past year has shown dramatic decreases in housing development and construction, with numerous housing developments stalled or abandoned and homebuyers turning to alternative housing options. The result is a rethinking of development and marketing trends. Developers are looking to more affordable and smaller-scale projects. This has led to development of inﬁll sites in urban settings where access to existing utilities reduces site development costs. Such inﬁll sites offer a better chance of a property retaining value. Urban sites often provide better access to public transportation, jobs and recreation. Future surveys will cover remodeling and kitchen and bath trends. Look for the next report in an upcoming issue of K+BB. I —James R. Lev, AIA, is senior project manager at Hagney Architects in Rockford, IL, and is a member of the K+BB editorial advisory board. 16 + K BB March 2009 / www.kbbonline.com / The Ofﬁcial Sponsor of K/BIS www.kbis.com http://www.kbbonline.com http://www.kbis.com

Table of Contents for the Digital Edition of KBB - March 2009

KBB - March 2009
Contents
Online Contents
Online News
Editorial
Digits
Consumer
Trends
Products
Profile
Design
Family Affair
Runner’s World
Access
Tech
Education
Practice
Ad Index
Editorial Index
Favorites

KBB - March 2009