Lack of Financing Hurting Architectural Firms

Washington, DC, June 6, 2011 -- Approximately two-thirds of architects surveyed by the American Institute of Architects in April said that they have at least one project that is stalled due to lack of financing, despite record low interest rates, according to a story in Citybiz Real Estate.

The survey of April business activity was taken as part of the AIA’s Architectural Billings Index, a leading monthly economic indicator of construction activity.|

The availability of construction project financing remains a major issue for many architecture firms. In April, 57% of survey respondents rated the issue as very or extremely serious, and an additional 30% indicated that it is a somewhat serious issue.

Nearly half of respondents (45%) think that the availability of credit has become more restrictive over the past year, with just 16% seeing an easing in credit availability.

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