In July of 2019, demands for new construction and design services rose a little bit because of the improved architecture billing structure. Unfortunately, though, this led to the design contracts falling into negative numbers in contrast to design demand for the first time in about a year. Companies are complaining because they think that the current trade situations, the stock market, and even interest rates are the cause of many of their clients proceeding with more caution than ever before when it comes to current projects.
The real estate market is significantly starting to weaken as the markets and crashing interest rates are being blamed in the economic trade war.
Larger commercial architecture is one of the strongest facets in the real estate industry, and the demand for rental apartments is still pretty high, despite the hole in the financial department of the for-sale housing market. Because of this demand, every other aspect of the real estate industry and even the sectors of construction firms getting more jobs is falling into the negatives.
The AIA’s chief economist, Kermit Baker, states that the data that has been seen isn’t quite the same as what most of the country saw until the last economic crisis occurred, but unfortunately the slowing down of many factors in the economy will cause architecture firms and even affect construction as an industry altogether over the next few months.
The true question remains though, is the real reason of people’s caution because of the stock market and trade situation? Or is it because thanks to the wonders of the internet, they’re starting to know what to be more cautious of in the industry?