Architecture Billings "Remain weak" in June
Multi-family billings negative for 45 of last 47 months
Architecture Billings Index in Contraction for 44 of Last 45 Months
This index is a leading indicator primarily for new Commercial Real Estate (CRE) investment including multi-family residential.
From the AIA: ABI June 2026: Billings remain weak at architecture firms
The AIA/Deltek Architecture Billings Index ® (ABI) score for the month was 47.3. While this score is nearly three points higher than the May score, it still indicates that a majority of firms reported a decline in billings this month, although fewer firms reported a decline than last month. Architecture firms remain mired in one of the longest-running downturns in the 30-plus year history of the ABI, which now stretches to 41 months without a majority of firms reporting billings growth. In a more positive sign, inquiries into new work at firms increased again in June, after a slight decline in May. And the value of newly signed design contracts was just slightly below 50, meaning that they are essentially flat, with an almost equal share of firms reporting a decline as reported an increase.
However, backlogs at firms also decreased slightly in the second quarter of the year, falling to an average of 6.3 months from 6.6 months in the first quarter. Backlogs decreased most precipitously at small firms with annual billings of less than $250,000, declining from an average of 4.9 months to just 3.1. Firms with a multifamily residential specialization also saw their backlogs decline from an average of 6.2 months to 5.3 months. While backlogs generally held steady at larger firms, smaller firms may be starting to work through their backlog of projects as they struggle to find new projects, which could leave them more vulnerable in the future if business remains slow.
Billings also declined at firms in all regions of the country in June, except for firms located in the South, where billings were essentially flat. Business conditions continued to soften further at firms located in the Midwest, after they experienced slight growth in the fourth quarter of 2025. Firms of all specializations also reported declining billings for the second month in a row. Firms with a multifamily residential specialization have seen the greatest drop off recently after experiencing more stable conditions earlier this year.
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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 (45.6); Midwest (45.1); South (49.5); Northeast (44.9)
• Sector index breakdown: institutional (47.4); commercial/industrial (46.7); multifamily residential (45.6).
This graph shows the Architecture Billings Index since 1996. The index was at 47.3 in June, up from 44.5 in May. Anything below 50 indicates a decrease in demand for architects’ services. This index has indicated contraction for 44 of the last 45 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 through the remainder of 2026 and into 2027.
Multi-family billings have been below 50 for 45 of the last 47 months.