Architecture Billings Declined Slightly in March
Multi-family billings slightly positive after 43 consecutive months of declines
Architecture Billings Index in Contraction for 41 of Last 42 Months
This index is a leading indicator primarily for new Commercial Real Estate (CRE) investment including multi-family residential.
From the AIA: AIA/Deltek ABI signaling market stabilization with near flat billing activity
Architecture firm billings held steady in March, indicating market stability despite global economic concerns.
The AIA/Deltek Architecture Billings Index (ABI) scored 49.8, reflecting near-equal shares of firms reporting increases and decreases. This marks the closest the index has come to the 50-point growth threshold since early 2023, offering cautious optimism.
New project inquiries rose steadily, and firm backlogs averaged 6.6 months, the highest since December 2023. Multifamily residential backlogs grew from 5.4 months in December to 6.2 months in March, while institutional backlogs remained steady at 8.2 months. However, design contracts declined for the 25th consecutive month, with the slowdown worsening from February.
Regionally, the West saw its first billing increase since December 2024, while other regions, particularly the Northeast, faced softer conditions.
“While billings could soon see positive growth for the first time in three years, ongoing economic and geopolitical challenges, such as the Iran conflict and labor shortages, pose significant risks to recovery,” said AIA Chief Economist, Richard Branch. “These external issues will have a significant impact on the health of construction activity in both the near and long term.”
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The ABI serves as a leading economic indicator that leads nonresidential construction activity by approximately 9-12 months.
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• West (50.6); Midwest (49.4); South (48.5); Northeast (44.2)
• Sector index breakdown: institutional (52.6); commercial/industrial (52.5); multifamily residential (50.9); mixed practice (firms that do not have at least half of their billings in any one other category) (40.7)
This graph shows the Architecture Billings Index since 1996. The index was at 49.8 in March, up from 49.4 in January. Anything below 50 indicates a decrease in demand for architects’ services. This index has indicated contraction for 41 of the last 42 months.
Note: This includes commercial and industrial facilities like hotels and office buildings, multi-family residential, as well as schools, hospitals and other institutions. This index typically leads CRE investment by 9 to 12 months, so this index suggests a slowdown in CRE investment throughout 2026.
Multi-family billings were slightly positive in March. This had been below 50 for 43 consecutive months. This suggests we will some further weakness in multi-family starts.