AIA's Home Design Survey Still Shows Contraction

Washington, DC, March 9, 2010--The Home Design Survey Index of residential billings was up 12 points over last year to 32 in the fourth quarter of 2009, according to the American Institute of Architects.

The index is a leading indicator of U.S. residential construction spending.

A score below 50 indicates a contraction in demand.

"Residential architects continue to report declining business conditions, indicating that the housing market is not yet entering a full recovery phase," the AIA said in a press release.

In this uncertain environment, homeowners can not be certain their homes will appreciate in value, which has made them more restrained in their spending on kitchens and bathrooms, the AIA said.

Instead of larger kitchens and more bathrooms, homeowners are placing a priority on products and features that promote energy efficiency.

"Since kitchens remain the nerve center of the home, doing more with less space is a key consideration," AIA chief economist Kermit Baker said.

Architects are aiming to integrate kitchens with family space, including areas devoted to recycling and spaces devoted to recharging laptops and cell phones.

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