Architectural firms across the country are facing a somewhat dormant business outlook, with many firms reporting an ongoing lack of billing growth, according to a new survey by the Washington-based American Institute of Architects.
With any number above 50 reflecting growth in assigned new projects, the overall score in the organization’s Architecture Billings Index had dropped from 47.1 in December to 43.8 as of the first weeks of this year.
In a press release, the group noted that “inquiries into new projects declined for the first time since April 2025, and the value of newly signed design contracts also softened.”
The narrative continued, noting “there remains uncertainty among clients about starting new work, and the new projects that do get started tend to be smaller than in the past.”
Business conditions in all specializations have also remained soft, “although the pace of billings decline has slowed in recent months at firms with a multifamily residential specialization.”
Regionally, the South has been seeing the strongest billing figures with an overall index reading of 50.2. Firms in both the Midwest and West were marginally worse off, with dual index readings of 46.3.
Prospects in the Northeast seemed the most daunting, accounting for a 42.3 reading.
Unlike previous quarter reports, billings for the multi-family residential sector were the strongest at 48.4, followed by institutional work at 46.8, and commercial and industrial projects at 43.9.
Perhaps not surprisingly, a strong 56% of respondents to the AIA billings survey said they thought negotiating a design fee is “more challenging now than two years ago.” Less than 5% said they thought the current environment was either somewhat or a lot less challenging than where things stood in early 2024.
The AIA’s billing survey was done in conjunction with the Herndon, Virginia-based software company Deltek.
March 3, 2026
By Garry Boulard
Photo courtesy of Unsplash
