Remodeling Improves; Construction Struggling

In spite of recent signs of improvement, residential architects are still reporting net declines in all of the new construction sectors, according to Kermit Baker, AIA chief economist.

However, except for homes oriented to first-time buyers, the pace of decline has eased over the past year. A smaller share of respondents reported that conditions in that sector are weakening.

The townhouse/condo and second/vacation home sectors are particularly weak at present. For second/vacation homes, over 60 percent of respondents reported weakening conditions, compared to only 10 percent reporting improving conditions. For townhouse/condos, 46 percent reported weakening conditions and just over 12 percent reported improving conditions.

In contrast, residential architects are extremely positive about the interest in improving existing homes. Over 60 percent of respondents report that improvements for addition and alteration projects are increasing, with only 10 percent reporting declines. Household interest in kitchen and bath remodeling is reported as even more favorable.

- Courtesy of AIA