Energy Prices, Awareness Motivating Green Trend

Washington, D.C., September 13, 2007--A growing share of homeowners are concerned with utility costs, which has led to an increase in demand for energy efficient solutions, greater popularity of home offices, along with healthy business conditions in the home improvement sector.

These findings are from the American Institute of Architects (AIA) Home Design Trend Survey for the second quarter of 2007 that focused on systems, technologies, and functional rooms in the home.

 “As the environment and utility prices become more scrutinized, homeowners are demanding more energy efficient products and sustainable designs,” said AIA Chief Economist, Kermit Baker. “Structural insulation panels, geothermal heating / cooling systems, tankless water heaters and green flooring products such as bamboo and cork are all in high consumer demand.”

 A recent AIA poll revealed that 91% of registered voters said they would be willing to pay $5,000 more for a house that would use less energy and protect the earth.

 

For the third straight year, home offices are the most popular special function room. Addressing specific design issues, Louis B. Smith, AIA, chair of the AIA Small Projects Practitioners committee said, “Homeowners are looking for more than just a desk in a bedroom. They are looking for additional acoustic privacy, better natural lighting and even separate entry for clients. An architect’s design can help create the proper relationship between the office and the home, as well as ensure a productive environment that allows for work to be accomplished comfortably and efficiently.”

 AIA Home Design Trends Survey highlights                           2007                    2006

• Home office                                                                               61%                       51%
• Hobby / game rooms                                                                  23%                       28%
• Media / home theater                                                               22%                        18%
• Exercise / fitness                                                                         2%                        15%
• Au-pair / in-law suites                                                                20%                        23%
• Kid’s wing / guest wing                                                               16%                        13%

(% respond. report. popularity of room “increasing” minus % report. “decreasing”; Q2:)

Products                                                                                     2007                    2006
• Tank-less water heaters                                                               72%                     58%
• Energy-efficient                                                                           69%                     68%
• Low maintenance                                                                         65%                     61%
• “Green” flooring                                                                           62%                      n/a
• Synthetic / engineered                                                                  61%                     54%
• Reclaimed / salvaged                                                                   53%                     53%
• Water saving                                                                               47%                      45%
• Indoor air quality                                                                         41%                      41%
• Thermal moisture control                                                              38%                      44%

(% respond. report. popularity of products “increasing” minus % report. “decreasing”; Q2:)

Systems / technologies
• Wireless telecom / data                                                               65%                   67%
• Energy management                                                                   56%                   54%
• Geothermal heat / cool                                                                46%                    n/a
• Central audio                                                                              40%                   38%
• Automated lighting                                                                      35%                   36%
• Air purification                                                                            32%                     n/a

(% reporting popularity of system “increasing” minus % reporting “decreasing”; Q2:)

Special home features
• Extra insulation                                                                            62%                   45%
• Alt. insulation (e.g. panels; foam)                                                  62%                    n/a
• Ramps / elevators                                                                        54%                    41%
• Hurricane resistant design                                                            36%                     34%
• Easy-to-use features                                                                    32%                    32%
• Three or more car garages                                                           30%                    23%

(% reporting popularity of system “increasing” minus % reporting “decreasing”; Q2:2007)

Housing market business conditions
While billings at residential architecture firms are representative of the slowdown in the overall housing sector, architecture firms are reporting steady backlogs for projects with an average of 5.3 months of work under contract. The market environment for home improvement projects, both for additions and alterations as well as kitchen and bath remodels, is reported as very healthy even though growth is not as strong as it was a year ago. With overall business conditions for residential architects generally comparable to a year-ago, there have been some regional changes.

Regional Conditions:                                                                2007                     2006
• Northeast                                                                                     60                         53
• South                                                                                           49                         54
• West                                                                                            63                         65
• Midwest                                                                                        54                         61

Diffusion index: 50 = no change from previous quarter; Q2

Specific construction segments
• Additions / alterations:                                                               44%                     52%
• Kitchen and bath remodeling:                                                     38%                     50%
• Custom / luxury home market:                                                   12%                     -1%
• Townhouse / condo market:                                                       10%                     24%
• Second / vacation home market:                                                -6%                       2%
• Move-up home market:                                                              -2%                      -3%
• First-time buyer / affordable home market:                                -40%                    -25%

(% of respondents reporting sector “improving” minus % reporting “weakening”; Q2)

 


Related Topics:The American Institute of Architects