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AIA: Real Estate Market Continues to Improve with Consumer Confidence

(Source: AIA) – As the once struggling residential market continues to steadily improve, the size of homes has grown in response. This is the case for both high-end and custom homes as well as additions to existing homes. In addition, preferences for accessible spaces in homes—such as open-space layouts and single-floor design—also continue to rise.

Led by continued improving consumer confidence in the housing market, business conditions at residential architecture firms are at their strongest growth levels since the economic downturn. These findings are from the American Institute of Architects (AIA) Home Design Trends Survey for the first quarter of 2013, which focuses specifically on overall home layout and the use of interior and exterior space.

“We’ve seen over the past few years, an increased interest in seamlessly blending indoor and outdoor spaces and building in more informal spaces into homes,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “Because lot sizes don’t show any signs of increasing, it’s clear that homeowners want to maximize their current square footage to its highest potential, as opposed to increasing it.”

Overall home layout and size trends

Residential elements (% of respondents that reported increases)    2013     2012

Volume    24%     20%
Square footage     12%     8%
Lot size     3%     5%
In-home accessibility     64%     64%
Open space layout     56%     55%
Informal space    60%     51%
Access in/out of home     55%     47%
Single-floor plan     46%     45%

Outdoor living and landscaping trends

Residential elements (% of respondents that reported increases)     2013     2012

Low irrigation landscaping     61%     65%
Outdoor living space     63%     64%
Blended indoor / outdoor living     55%     53%
Rainwater catchment    52%     48%
Exterior / security lighting     35%     33%

Housing market business conditions

AIA Home Design Survey Index for Q1 2013 (any score above 50 is positive)

– Billings: 67
– Inquiries for new projects: 74

Baker added, “With business conditions at residential architecture firms at the strongest growth level since 2005, this is a very encouraging sign for the housing sector and broader economy in general, especially when you look at the year-over-year improvement in the marketplace.”

Specific residential segments*     2013     2012

Kitchen and bath remodeling    63    53
Remodeling additions / alterations     63    51
Custom / luxury home market    16    -2
Move-up homes    32    -3
First-time buyer / affordable home market    21    -7
Townhouse / condo market    7    -17
Second / vacation home market    -15    -36

– Index score computed as % of respondents reporting improving minus % reporting weakening conditions

About the AIA Home Design Trends Survey

The AIA Home Design Trend Survey is conducted quarterly with a panel of more than 500 architecture firms that concentrate their practice in the residential sector. Residential architects are design leaders in shaping how homes function, look, and integrate into communities and this survey helps to identify emerging trends in the housing marketplace. Business conditions are also monitored on a quarterly basis. Future surveys will focus on overall home layout and use (June 2013) specialty rooms and systems (September 2013) and community design trends (December 2013).

About The American Institute of Architects

Founded in 1857, members of the American Institute of Architects consistently work to create more valuable, healthy, secure, and sustainable buildings, neighborhoods, and communities. Through nearly 300 state and local chapters, the AIA advocates for public policies that promote economic vitality and public well being.  Members adhere to a code of ethics and conduct to ensure the highest professional standards. The AIA provides members with tools and resources to assist them in their careers and business as well as engaging civic and government leaders, and the public to find solutions to pressing issues facing our communities, institutions, nation and world. Visit

www.aia.org.

Source: AIA

As the once struggling residential market continues to steadily improve, the size of homes has grown in response. This is the case for both high-end and custom homes as well as additions to existing homes. In addition, preferences for accessible spaces in homes—such as open-space layouts and single-floor design—also continue to rise.

Led by continued improving consumer confidence in the housing market, business conditions at residential architecture firms are at their strongest growth levels since the economic downturn. These findings are from the American Institute of Architects (AIA) Home Design Trends Survey for the first quarter of 2013, which focuses specifically on overall home layout and the use of interior and exterior space.

“We’ve seen over the past few years, an increased interest in seamlessly blending indoor and outdoor spaces and building in more informal spaces into homes,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “Because lot sizes don’t show any signs of increasing, it’s clear that homeowners want to maximize their current square footage to its highest potential, as opposed to increasing it.”

Overall home layout and size trends

Residential elements (% of respondents that reported increases) 2013 2012
Volume 24% 20%
Square footage 12% 8%
Lot size 3% 5%
In-home accessibility 64% 64%
Open space layout 56% 55%
Informal space 60% 51%
Access in/out of home 55% 47%
Single-floor plan 46% 45%

Outdoor living and landscaping trends

Residential elements (% of respondents that reported increases) 2013 2012
Low irrigation landscaping 61% 65%
Outdoor living space 63% 64%
Blended indoor / outdoor living 55% 53%
Rainwater catchment 52% 48%
Exterior / security lighting 35% 33%

Housing market business conditions

AIA Home Design Survey Index for Q1 2013 (any score above 50 is positive)

• Billings: 67

• Inquiries for new projects: 74

Baker added, “With business conditions at residential architecture firms at the strongest growth level since 2005, this is a very encouraging sign for the housing sector and broader economy in general, especially when you look at the year-over-year improvement in the marketplace.”

Specific residential segments* 2013 2012
Kitchen and bath remodeling 63 53
Remodeling additions / alterations 63 51
Custom / luxury home market 16 -2
Move-up homes 32 -3
First-time buyer / affordable home market 21 -7
Townhouse / condo market 7 -17
Second / vacation home market -15 -36

* Index score computed as % of respondents reporting improving minus % reporting weakening conditions

About the AIA Home Design Trends Survey
The AIA Home Design Trend Survey is conducted quarterly with a panel of more than 500 architecture firms that concentrate their practice in the residential sector. Residential architects are design leaders in shaping how homes function, look, and integrate into communities and this survey helps to identify emerging trends in the housing marketplace. Business conditions are also monitored on a quarterly basis. Future surveys will focus on overall home layout and use (June 2013) specialty rooms and systems (September 2013) and community design trends (December 2013).

About The American Institute of Architects
Founded in 1857, members of the American Institute of Architects consistently work to create more valuable, healthy, secure, and sustainable buildings, neighborhoods, and communities. Through nearly 300 state and local chapters, the AIA advocates for public policies that promote economic vitality and public well being.  Members adhere to a code of ethics and conduct to ensure the highest professional standards. The AIA provides members with tools and resources to assist them in their careers and business as well as engaging civic and government leaders, and the public to find solutions to pressing issues facing our communities, institutions, nation and world. Visit www.aia.org.

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