AIA Announces Longest Ongoing Slump in Architecture Revenues

The American Institute of Architects (AIA) has announced the longest ever slump in architecture revenues in the US, citing macroeconomic uncertainty associated with rising oil prices.

The slump has lasted for nearly three and a half years, according to the AIA, making it the longest in the AIA/Deltek Architecture Billings Index (ABI) history. The ABI is an index that tracks non-residential construction in the American architecture industry since the 1990s.

The July report of the ABI showed a decrease in its metrics from June to July, which is part of a downward slope that has been ongoing for three and a half years. The report also noted a decrease in the value of signed contracts.

### Client Interest and Inquiries

Despite the decrease in billings, the report noted a note of client interest and an increase in inquiries across the industry. However, the value of newly signed design contracts fell further after coming close to growth the previous month.

| Region | July Score | | --- | --- | | American Northeast | 44.8 | | Other regions | 46.6 |

The overall index put July at 46.6, with the American Northeast having the biggest slump. The other three regions showed slight upticks from lows earlier in the year.

### Specialization and Billings

The slump covered all areas of specialization tracked by the index. Billings fell across every specialization, including multifamily residential and institutional specializations, which had posted slight growth earlier this year but have since seen conditions soften. Firms with a commercial and industrial specialization have not reported a rise in billings since July four years ago.

### Economic Conditions

According to AIA chief economist Richard Branch, general economic conditions are driving the slump. "Macroeconomic uncertainty continues to weigh on the built environment," said Branch. "High oil prices are putting upward pressure on inflation and may lead to even higher rates in the back half of the year. This will put additional pressure on developers and may lead to a further weakening in billings."

The fall in revenues is happening at the same time as rising construction costs. According to the Associated Builders and Contractors (ABC) research on Bureau of Labor Statistics data, construction prices have risen as much as 7.4 per cent year over year since July 2025.

While the stretch is technically the longest the index has been in the negative, a spokesperson from the AIA noted that the billings today are nowhere near the lows of 2020 during Covid, when they reached as low as 29.6. The longest stretch before was around 30 months following the 2008 recession.