There is new demand for projects like healthcare and education facilities everywhere. There is also a high demand for projects like public safety and government buildings. These projects sent the listing of architecture billings to a very high level in a period of eight years. According to the American Institute of Architects or AIA there has been a nearly four point jump in the architectural billings index or ABI in June when it hit 55.7. Any score that is over 50 reflects an increase in the billings.
The ABI is an economic gauge of future commercial constructions or real estate developments within nine to twelve months from now. On the other hand, another index on the inquiries of new projects also progressed upward.
AIA Chief Economist, Kermit Baker, has said, "The June numbers are likely showing some catch-up from slow growth earlier this year. This is the first month in 2015 that all regions are reporting positive business condition"
On the other hand, the only area that is showing weakness, to the surprise of many, was the multi-family apartment housing segment. In the recent years, despite the fact that supply is still relatively low, the demand is still quite strong thus Multi-family housing construction has been very strong. According to the U.S. Census, a year ago, multi-family housing construction stats moved to nearly twenty-nine percent in June from May and then was up to fifty-five percent from a year ago. The single family home construction has remained considerably weaker.
"The demand for new apartments and condominiums may have crested, with index scores going down each month this year and reaching the lowest point since 2011," said the AIA Chief Economist.
If the entire region would be considered, the ABI is strongest in the Midwest areas and weakest in the Northeast areas, but the rest of the country is in positive ground.
