US Construction Spending, Rising Demand for Sustainable Design to Drive Architectural Service Revenues

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Sep 07, 2022, 16:51 ET

Inflation, labor costs, LEED certification set to drive up prices

CLEVELAND, Sept. 7, 2022 /PRNewswire/ -- US architectural service revenues are forecast to grow 4.9% per annum in nominal dollars through 2026 from a depressed base in 2021, according to Architectural Services: United States, a report recently released by Freedonia Focus Reports. Demand for architectural services is closely tied to US building construction expenditures, which are forecast to rise 6.2% annually from 2021 to 2026. Providers of architectural services stand to benefit from a growing emphasis on sustainable design. Value gains over the historical period were promoted by increasing demand for architects and designers certified by the US Green Building Council's Leadership in Energy and Environmental Design (LEED) program, which heightened architectural design time and fees, among other costs. This factor will continue to support value growth into the forecast period as demand for LEED certification continues to expand due to environmental concerns and efforts to lower building utility costs, in addition to potential tax deductions. The rising cost of acquiring land and constructing structures will limit faster growth in building construction expenditures and in demand for architectural services.

In 2022, architectural service revenues are expected to expand 4.3%, with the most notable gains seen in the single-unit residential segment (10%). Gains will stem from attempts by consumers to renovate their existing homes and construct new homes, in addition to rising prices in the face of inflation and rising labor costs.

These and other key insights are featured in Architectural Services: United States. This report forecasts to 2022 and 2026 US architectural services revenue in nominal US dollars. Total revenues are segmented by market in terms of:

commercial
single-unit residential
interior design
landscape
multiple-unit residential
other market such as architectural advising, historical restoration, and urban planning

To illustrate historical trends, total revenues and the various segments are provided in annual series from 2011 to 2021.

This report includes the revenues of both employer and nonemployer establishments. The interior design segment represents interior design revenues generated by architectural firms. The revenues of interior design firms are excluded from the scope of this report.

More information about the report is available at:

https://www.freedoniafocusreports.com/Architectural-Services-United-States-FF95039/?progid=91541

About Freedonia Focus Reports

Each month, The Freedonia Group – a division of MarketResearch.com – publishes over 20 new or updated Freedonia Focus Reports, providing fresh, unbiased analysis on a wide variety of markets and industries. Published in 20-30 pages, Focus Report coverage ranges from raw materials to finished manufactured goods and related services such as freight and construction. Additional Services & Industries reports can be purchased at Freedonia Focus Reports or MarketResearch.com.

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