Recession Changing Home Trends, Remodeling Down

Washington, DC, Dec. 22, 2008--The AIA has released its Home Design Trends Survey and says that housing downturn is reshaping households’ preferences for the design of their neighborhoods and communities.

Infill locations are growing in popularity, according to AIA Chief Economist Kermit Baker, while exurban subdivisions—even with the opportunities they offer for recreational opportunities, open space, and more fully developed community plans—are losing ground because of their lack of access to public transportation and commercial services.

In addition to emerging design trends, the survey documents the continued downward spiral of business conditions at residential design firms across the U.S. The Sunbelt regions of the country, where most of the new residential construction occurs, is reporting particularly weak conditions. All of the major residential construction sectors are declining, while remodeling activity has nearly stalled.

The survey shows that simplicity in home styles and exteriors is gaining in popularity.

Home styles also are reflecting the changes of a weaker housing market. Front and side porches are the one feature mentioned by residential architects that continues to have strong popularity. Single-story homes, contemporary (as opposed to traditional) styles, simpler exterior detailing, and windows with nontraditional shapes and sizes are all showing limited popularity at present. Unique home features apparently are less desirable in this uncertain market.

The survey shows that residential architects have been reporting a steady deterioration in business conditions. Conditions turned from slow growth to decline during the second half of 2007, and the downturn has accelerated throughout 2008.

Business conditions for residential architects are weak in all regions of the country. However, over the past year, they have deteriorated the most for firms in the South and West.

No housing sector has been spared from the downturn.

All major construction sectors are reported to be significantly weaker than they were a year ago, according to residential architects surveyed. Second homes and vacations homes are showing the greatest declines, followed closely by first-time buyer/affordable homes, move-up homes, townhouses and condos, and custom and luxury homes.

Home improvement projects—kitchen and bath projects as well as additions and major alterations—are reported as seeing very weak growth by residential architects.

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