Confronting a somewhat sluggish market, projects for architecture firms across the country saw only a slight increase last month but are still not where they were two years ago.
According to the most recent American Institute of Architects billings index, the overall index score for August came in at 47.2, which was an increase over where things stood in early summer at 46.2.
But the elusive goal of a 50 index, indicating a breakeven mark, remained elusive, especially in the institutional practices category which dropped to 42.5. That’s the lowest reading for that category in nearly 5 years.
The multifamily category remained also, but just barely, on the negative side at 49.9. One ray of light was seen in the commercial/industrial category at 50.8.
Overall billings have been consistently on the downside since late last year. Even more, the numbers have been off now for an overwhelming 32 out of the last 35 months.
In a narrative accompanying the latest index results, it was noted that 2025 has seen “generally soft inquiries into new projects and a steady decrease in the value of newly signed design contracts, as clients remain cautious about committing to new projects.”
“Without work on the horizon,” the narrative continues, “many firms will likely continue to experience declining billings in the coming months.”
Regionally, billings were their strongest in the South at 49.9, followed by the Midwest at an even 48. The Northeast was marginally lower at 46.2; with the West showing the worst results at 43.4, after leading the country in late 2024 and early this year.
On a separate question regarding the question of firm mergers, most respondents said they think it is unlikely that their firms will be acquired or merge with another firm in the next 5 years.
At the same time, 63% of respondents to the AIA survey said they expected such mergers, industrywide, to increase between now and 2030.
September 29, 2025
By Garry Boulard
