Multifamily Residential Projects Stalled

Education, other institutional, and multifamily projects are most vulnerable to financing problems.
Courtesy of AIA

Stalled projects remained a major issue for architecture firms. Nearly two-thirds of firms (65 percent) reported having at least one design project under contract that is currently stalled, but likely to eventually proceed to construction. Three-quarters of these stalled projects are delayed due to difficulties obtaining financing.

Firms reported that all project types have been impacted by financing issues, with four in 10 of these projects being in the institutional sector: education (16.3 percent), healthcare (9.3 percent) and other institutional projects (15.7 percent).

Multifamily residential projects accounted for a significant share (15.1 percent) of projects stalled due to problems obtaining financing. In contrast, industrial, single-family residential, and office projects each accounted for less than 8 percent of projects stalled with financing issues.

Work on the Boards participants saw an increase in industrial activity, although other firms claim that multifamily housing has slowed down again.

Owners are taking longer to begin contracts, according to a survey participant. Most clients are renovating existing facilities instead of starting ground-up new construction. Work from non-profit entities is virtually nonexistent.

- Courtesy of AIA, Jennifer Riskus