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Thanks to a strengthening multifamily housing sector, billings at U.S. architectural firms have hit their fastest pace in nearly two years, according to the industry's latest index reading.
September's Architecture Billings Index (ABI) was 51.6, up from 50.2 in August, reports the American Institute of Architects. That's the fastest pace since late 2010.
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The multifamily residential sector has been the best-performing category since the third quarter of 2011. In September, the ABI for the sector was 57.3. |
Any score above 50 indicates an increase in demand for design services.
In addition, the new projects inquiry index was 57.3, up slightly from 57.2 the previous month, AIA says.
Multifamily Sector Leads Way
Since the third quarter of 2011, multifamily residential construction has been the "best-performing segment of the construction field," according to Kermit Baker, AIA's chief economist.
"With high foreclosure levels in recent years, more stringent mortgage approvals, and fewer people in the market to buy homes, there has been a surge in demand for rental housing," Baker said.
"The upturn in residential activity will hopefully spur more nonresidential construction."
September Highlights
Regional ABI averages for September were 53.4 for the West, 51.9 for the South, 49.5 for the Northeast, and 47.2 for the Midwest.
By sector, readings were 57.3 for multifamily residential, 51.0 for institutional, 48.4 for commercial/industrial, and 47.8 for mixed practice.
The ABI reflects the approximate nine- to twelve-month lag time between architecture billings and construction spending.
The regional and sector categories are calculated as a three-month moving average, whereas the index and inquiries are monthly numbers.
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