Real Estate Industry News

The latest trends survey shows that homes are getting larger. This Second Quarter 2022 study by the American Institute of Architects shows results reported by architectural members around the country about what’s happening in their practices and markets.

There were square footage decreases in past years associated with downsizing, also referred to as “right-sizing,” but that trend has sharply reversed in 2021 and 2022. This dovetails with households forced to accommodate additional family members home from college, out-of-home work or nursing homes because of Covid, as well as homes being required to handle work from home, at home schooling and physical accommodation needs.

Adding Space at Home

Additions and remodeled spaces are increasing in size, potentially to address these new needs, and the greatest demand for these enhancements is at the luxury level. These are also the homeowners who likely held back more funds from travel and summer camps for their children because of Covid these past two years, so had more money (and incentive) to invest in their homes.

Finishing unfinished spaces in a home, which can include attics, basements and garages, points to the need for accommodating more household members and home-based tasks since the pandemic began, like study, remote work, small business startups, and increased food preparation.

Architects working on entry level and affordable homes saw decreases in home sizes. This could correlate to building product price inflation, persistent supply chain issues and financial stresses among this homeowner cohort, as well as Covid aid programs taper off.

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Bonus Space Decreases

At the same time, adding bonus space has surprisingly trended downward, despite the crush for extra housing and extra space in existing housing. The survey shows a marked decrease in accessory dwelling units and other rental space from last year to this year. That too could correlate to increased costs of building these units, as well as a shortage in construction labor making the process harder to start and complete.

Aging in Place

Reported architectural projects for adding accessibility within the home have increased from last year to today, as have accessibility into and out of the home, and overall designs for aging in place. This too could relate to older family members moving in during the pandemic to help with childcare or address their own needs. It also connects to our aging population and increasing rates of disability with age. Single floor plans also increased in popularity, tying into this accessibility trend.

Outdoor Living

There was a slight decrease in outdoor living spaces from 2021 to 2022, and in outbuildings (e.g., pool houses, sheds). Given increasing temperatures in many regions of the country, there are more architectural houseplans with pools. Outdoor security lighting has also markedly increased, likely tied to national crime trend concerns.

Business Trends

AIA members reported record high project backlogs since the survey began in 2005, the survey reports. These numbers have sharply increased since the pandemic began and continue to steadily climb. While the architects reported healthy business conditions across the country, all housing sectors reported growth declines, with first time buyer/affordable homes seeing the biggest drop.