While Home and Lot Sizes are Still Shrinking, Property Enhancements Remain Popular

As occurs in most downturns, new home sizes have been declining during this recession. However, even as market conditions improve, residential architects are reporting that home sizes are continuing to decline. Courtesy of AIA

Residential architects finally reported modest gains in business levels after a 30-month downturn. A severe housing recession, concern over rising home energy costs, and changing lifestyles have all increased interest in smaller homes that are designed to reflect the changing lifestyles of households, according to Kermit Baker, AIA chief economist.

AIA's Home Design Trends Survey for the first quarter of 2010 reported accessibility around the home and layouts with more flexible designs and informal spaces are emerging as top priorities. As with houses, lot sizes continue to shrink, although this trend began well before the current housing recession.

Even with smaller lots, many households are focusing more attention on their properties. Low maintenance is a key goal for these improvements to the property, with increased outdoor living space continuing as a trend that is reshaping household lifestyles.

However, growing attention to the property has not resulted in traditional upscale features. Formal landscaping, decorative water features, and other upscale improvements are all seen by residential architects as declining in popularity. It may be a good time to expand your landscape business to include outdoor living spaces, such as fireplaces and barbecues.

Business conditions are finally showing signs of improvement at residential architecture firms. In the first quarter, billings showed their first quarterly increase since mid-2007. Firms in all regions are showing progress toward a recovery in residential design activity, with firms in the Midwest reporting healthy levels of growth.

Improvement activity on existing homes is showing strong gains. Major construction sectors are still waiting to recover according to residential architects, with entry level homes likely to be the first sector that will rebound. Conditions in the townhouse/condo and second/vacation home sectors remain weak at present.

As of the first quarter 2010 survey, fewer than 3 percent of residential architects were reporting that the square footage of homes was increasing, while almost 57 percent reported sizes to be declining.

- Courtesy of AIA