flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Report finds credit crunch accounts for 20% of nation’s stalled projects

Report finds credit crunch accounts for 20% of nation’s stalled projects

Persistent financing crunch continues to plague design and construction sector.


By By BD+C Staff | November 29, 2011
AIA finance design construction
The lack of financing especially to the design and construction sector, which accounts for $1 in $9 of U.S. Gross Domestic Produ

The American Institute of Architects (AIA) released a comprehensive report, which concludes that the major obstacle holding back job creation in the U.S. is the persistent lack of construction financing, despite record low interest rates.

“This report should lay to rest any doubt about what is a key source for holding back job creation in the United States,’ said Kermit Baker, chief economist of the AIA. “It is the lack of financing especially to the design and construction sector, which accounts for $1 in $9 of U.S. Gross Domestic Product.”

The report found:

  • The share of projects stalled due to financing problems through August 2011 has almost doubled since 2008
  • One-in-five stalled projects are directly resulting from financing problems
  • Financing problems account for a higher share of stalled projects in the education and multi-family sector
  • More than 25% of projects reported as stalled due to the credit crunch could qualify for LEED, Green Globes, or other green certification status
  • Financing issues are less of a factor holding back projects in the manufacturing, private healthcare, and retail environments

“Whatever, the reason – be it over-regulation, the threat of a double-dip recession or the reluctance to have too many loans on the books, lenders are just not lending to a major job-producing sector of the American economy,” Baker noted. “Until more credit is extended, the potential of non-residential construction to promote greater levels of economic growth will not be realized.” BD+C

Related Stories

Architects | Jan 8, 2018

Catherine Selby joins Dattner Architects’ partners group

Selby joins Principals Paul Bauer AIA; Richard Dattner FAIA; Jeff Dugan AIA; Beth Greenberg AIA; Daniel Heuberger AIA, LEED AP; Kirsten Sibilia Assoc. AIA; William Stein FAIA; and John Woelfling AIA, LEED AP in leading the 115-person firm.

Big Data | Jan 5, 2018

In the age of data-driven design, has POE’s time finally come?

At a time when research- and data-based methods are playing a larger role in architecture, there remains a surprisingly scant amount of post-occupancy research. But that’s starting to change.

Multifamily Housing | Jan 4, 2018

Shigeru Ban’s mass timber tower in Vancouver gets city approval

The 232-foot-tall Terrace House luxury condo development will be the tallest hybrid wood structure in North America.

Architects | Jan 4, 2018

Integrated design for children and housing

Homelessness is an issue affecting millions around the globe. 

Sponsored | | Jan 3, 2018

4 networking strategies to grow your business

Follow these networking strategies to grow your architectural business with the work that you want.

BD+C University Course | Jan 2, 2018

The art and science of rendering: Visualization that sells architecture [AIA course]

3D artist Ramy Hanna offers guidelines and tricks-of-the-trade to ensure that project artwork is a stunning depiction of the unbuilt space.

Green | Dec 22, 2017

Green builders can use ‘big data’ to make design decisions

More and more, green project teams are relying on publicly available “external datasets” to prioritize sustainable design decisions, says sustainability consultant Adele Houghton.

Reconstruction & Renovation | Dec 21, 2017

Interactive map includes detailed information on historic New York City buildings

The New York City Landmarks Preservation Commission launched a new, enhanced version of its interactive map, Discover NYC Landmarks.

High-rise Construction | Dec 20, 2017

Another record year for high-rise construction

More than 140 skyscrapers were completed across the globe this year, including 15 supertall towers.

Game Changers | Dec 20, 2017

Urban farms can help plant seeds for cities’ growth around them

Urban farms have been impacting cities’ agribusiness—and, on some cases, their redevelopment—for decades.

boombox1
boombox2
native1

More In Category

Warehouses

California bill would limit where distribution centers can be built

A bill that passed the California legislature would limit where distribution centers can be located and impose other rules aimed at reducing air pollution and traffic. Assembly Bill 98 would tighten building standards for new warehouses and ban heavy diesel truck traffic next to sensitive sites including homes, schools, parks and nursing homes.




halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021