First-quarter proposal activity for multifamily housing added to prior quarter gains, reaching a near-record Net Plus/Minus Index (NPMI) of 71%. Multifamily topped the four other housing submarkets, though all performed well.
The first three months of the year saw housing lead all 12 major markets in the PSMJ Resources Quarterly Market Forecast survey of architecture, engineering, and construction (AEC) firms.
PSMJ’s NPMI expresses the difference between the percentage of firms reporting an increase in proposal activity and those reporting a decrease. The QMF has proven to be a solid predictor of market health for the industry since its inception in 2003. A consistent group of over 300 AEC firm leaders participate regularly, with 183 contributing to the most recent survey.
Up 13 percentage points from the final quarter of 2020, multifamily’s NPMI of 71% tied its third-highest score since PSMJ added submarkets to its QMF survey in 2006. In addition to the record-high 76% in the 1st Quarter of 2018 and 72% in the 1st Quarter of 2012, Multifamily hit 71% in the 1st Quarter of 2015.
The 2021 performance marked a remarkable rebound for Multifamily, which dipped to -2% in the 1st Quarter of 2020, its first time in negative figures since 2010. In fact, before the COVID-driven drop a year ago, Multifamily’s NPMI had not fallen below 40% since the 3rd Quarter of 2011.
PSMJ Senior Principal David Burstein, PE, AECPM, noted that the strong performance of Multifamily and the entire Housing sector illustrates the industry’s overall economic health, as Housing growth often leads to activity in commercial, institutional and industrial markets as well. Should Congress pass an infrastructure stimulus bill, adds Burstein, the market could see even more historic growth.
Among respondents that work in the Multifamily sector, only 1% said that they saw a decrease in proposal opportunities in the 1st Quarter, compared with 72% that saw a noticeable increase. The remainder said that activity was about the same as the prior quarter.
The Assisted/Independent Senior Living submarket was another highflyer in the 1st Quarter, climbing 32 NPMI percentage points to 59%, tied for 12th -best among all submarkets. Condominiums bounced another 15 NPMI points to 30%, its best showing in three years.
The two other Housing markets measured in the PSMJ survey remain in rarefied air. The Housing Subdivision market recorded an NPMI of 68%, eclipsing its record-tying 4th -Quarter 2020 performance by 17 percentage points. Single-Family Homes dipped 8 NPMI percentage points to 51% – one of only 3 submarkets to see a decline – but that was still good enough for its second-best NPMI performance in the history of the QMF survey.
Related Stories
| Aug 11, 2010
AIANY partners with New York's building department to launch design competition for safer, more appealing sidewalk shed
The New York City Department of Buildings (DOB) and the New York Chapter of the American Institute of Architects (AIANY) today announced the launch of the urbanSHED International Design Competition with support from the Alliance for Downtown New York, ABNY Foundation, Illuminating Engineering Society New York City Section (IESNYC), and the New York Building Congress.
| Aug 11, 2010
Construction employment declines in 48 states in August compared to last year
Construction employment saw significant declines in all but two states this August compared to last year according to an analysis of new state-by-state employment figures released today by the federal government. The analysis, conducted by the Associated General Contractors of America, however did show that the number of states gaining construction jobs increased slightly in August compared to July 2009.
| Aug 11, 2010
Stimulus funding helps get NOAA project off the ground
The award-winning design for the National Oceanic and Atmospheric Administration’s (NOAA) new Southwest Fisheries Science Center (SWFSC) replacement laboratory saw its first sign of movement on Sept 15 with a groundbreaking ceremony held in La Jolla, Calif. The $102 million project is funded primarily by the American Recovery and Reinvestment Act (ARRA), resulting in a rapidly advanced construction plan for the facility.
| Aug 11, 2010
New book on ‘Green Workplace’ by HOK’s Leigh Stringer, a BD+C 40 under 40 winner
The new book The Green Workplace is a comprehensive guide that demonstrates how green businesses can reduce costs, improve recruitment and retention, increase shareholder value, and contribute to a healthier natural environment.
| Aug 11, 2010
BIM adoption rate exceeds 80% among nation’s largest AEC firms
The nation’s largest architecture, engineering, and construction companies are on the BIM bandwagon in a big way, according to Building Design+Construction’s premier Top 170 BIM Adopters ranking, published as part of the 2009 Giants 300 survey. Of the 320 AEC firms that participated in Giants survey, 83% report having at least one BIM seat license in house, and nearly a quarter (23%) have 100-plus seats.
| Aug 11, 2010
PCA partners with MIT on concrete research center
MIT today announced the creation of the Concrete Sustainability Hub, a research center established at MIT in collaboration with the Portland Cement Association (PCA) and Ready Mixed Concrete (RMC) Research & Education Foundation.
| Aug 11, 2010
Study explains the financial value of green commercial buildings
Green building may be booming, especially in the Northwest, but the claims made for high-performance buildings have been slow to gain traction in the financial community. Appraisers, lenders, investors and brokers have found it difficult to confirm the value of high-performance green features and related savings. A new study of office buildings identifies how high-performance green features and systems can increase the value of commercial buildings.
| Aug 11, 2010
Architecture Billings Index flat in May, according to AIA
After a slight decline in April, the Architecture Billings Index was up a tenth of a point to 42.9 in May. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. Any score above 50 indicates an increase in billings.
| Aug 11, 2010
Architecture Billings Index drops to lowest level since June
Another stall in the recovery for the construction industry as the Architecture Billings Index (ABI) dropped to its lowest level since June. The American Institute of Architects (AIA) reported the August ABI rating was 41.7, down slightly from 43.1 in July. This score indicates a decline in demand for design services (any score above 50 indicates an increase in billings).