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
Luxury Residential | Feb 1, 2024
Luxury 16-story condominium building opens in Chicago
The Chicago office of architecture firm Lamar Johnson Collaborative (LJC) yesterday announced the completion of Embry, a 58-unit luxury condominium building at 21 N. May St. in Chicago’s West Loop.
Industry Research | Jan 31, 2024
ASID identifies 11 design trends coming in 2024
The Trends Outlook Report by the American Society of Interior Designers (ASID) is the first of a three-part outlook series on interior design. This design trends report demonstrates the importance of connection and authenticity.
Museums | Jan 30, 2024
Meier Partners' South Korean museum seeks to create a harmonious relationship between art and nature
For the design of the newly completed Sorol Art Museum in Gangneung, South Korea, Meier Partners drew from Korean Confucianism to achieve a simplicity of form, material, and composition and a harmonious relationship with nature. The museum is scheduled to open on February 14. It is the firm’s first completed project since restructuring as Meier Partners.
Luxury Residential | Jan 30, 2024
Lumen Fox Valley mall-to-apartments conversion completes interiors
Architecture and interior design firm Morgante Wilson Architects (MWA) today released photos of its completed interiors work at Lumen Fox Valley, a 304-unit luxury rental community and mall-to-apartments conversion.
Airports | Jan 30, 2024
Rafael Viñoly Architects’ design for the new Florence, Italy, airport terminal will feature a rooftop vineyard
At Florence, Italy’s Aeroporto Amerigo Vespucci, the new international airport terminal will feature a fully operating vineyard on the facility’s rooftop. Designed by Rafael Viñoly Architects, the terminal is expected to see over 5.9 million passengers annually. Renderings for the project have recently been released.
Giants 400 | Jan 29, 2024
Top 160 Workplace Interior Architecture Firms for 2023
Gensler, Interior Architects, HOK, SmithGroup, and Perkins&Will top BD+C's ranking of the nation's largest workplace interior and interior fitout architecture and architecture engineering (AE) firms for 2023, as reported in the 2023 Giants 400 Report.
Mixed-Use | Jan 29, 2024
12 U.S. markets where entertainment districts are under consideration or construction
The Pomp, a 223-acre district located 10 miles north of Fort Lauderdale, Fla., and The Armory, a 225,000-sf dining and entertainment venue on six acres in St Louis, are among the top entertainment districts in the works across the U.S.
Laboratories | Jan 25, 2024
Tactical issues for renovating university research buildings
Matthew Plecity, AIA, ASLA, Principal, GBBN, highlights the connection between the built environment and laboratory research, and weighs the benefits of renovation vs. new construction.
K-12 Schools | Jan 25, 2024
Video: Research-based design for K-12 schools
Two experts from national architecture firm PBK discuss how behavioral research is benefiting the design of K-12 schools in Texas, Florida, and other states. Dan Boggio, AIA, LEED AP, NCARB, Founder & Executive Chair, PBK, and Melissa Turnbaugh, AIA, NCARB, Partner & National Education & Innovation Leader, PBK, speak with Robert Cassidy, Executive Editor, Building Design+Construction.
Women in Design+Construction | Jan 25, 2024
40 Under 40 Class of 2023 winner Kimberly Dowdell inaugurated as AIA 2024 President
The American Institute of Architects (AIA) has announced the inauguration of Kimberly Dowdell, AIA, NOMAC, NCARB, LEED AP BD+C, Principal and Director of Strategic Relationships at HOK and BD+C 40 Under 40 superstar, as its 100th president.
