Architecture News

Business Conditions at Architecture Firms Continue Weak Streak

October 2025 Architecture Billings Index — Image courtesy American Institute of Architects

With a score of 47.6, the latest Architecture Billings Index (ABI) from AIA/Deltek shows that business conditions at architecture firms remain soft—but not quite as soft as the previous month, which scored 43.3. (Any score below 50.0 indicates diminishing business at architecture firms.) Despite the not-as-sharp decline in October compared to September, there’s not much hope that things will reverse into positive territory with an ABI score of 50.0 or higher by the end of the year—or into early next.

Image courtesy American Institute of Architects

On a positive note, the October ABI shows that the new project inquiries index enjoyed a spike—the highest in a year and a half—with a score of 54.8 after two consecutive months of remaining flat. The value of new design contracts, however, remains on the decline with a score of 47.1.

Image courtesy American Institute of Architects

“Architecture firms estimate that billings declined modestly this year. Unfortunately, they are not expecting a significant turnaround in 2026,” says AIA chief economist Kermit Baker. “About a third of firms nationally project that their billings will increase this coming year, and a slightly higher share expect them to remain about the same. Firms with a multifamily specialization are the most optimistic about prospects for 2026.”

Image courtesy American Institute of Architects

Looking at regional averages, the Midwest comes closest to breaking past 50.0 with a score of 49.6, while the West has the most work to do with its score of 42.1 (a slight improvement from the previous score of 40.6). Meanwhile firms specializing in multifamily residential, as mentioned by Baker, are in the strongest position with a score of 46.8.

The AIA offers a variety of resources to help professionals navigate economically uncertain times.