The American Institute of Architects’ (AIA) Home Design Trends Survey for the fourth quarter of 2011 found that among new construction segments, custom and luxury homes are the closest to full-fledged recovery.
This segment saw the biggest increase from the year-to-year comparisons with 17 percent more firms saying they have more high-end, custom projects than during the third quarter for 2010. The overall custom/luxury market figures, however, still show 8 percent more firms reporting that market segment declining versus those who see an upward trend. AIA analysts theorize this segment is doing well because financing is easier to obtain for luxury clients.Although the positive custom/luxury home numbers are likely driven by select consumers willing and able to foot a bigger bill for higher-end design during tough times, continued segment growth will depend on improvements in trade-up homes, which rely on new housing starts, the report found.
Remodeling markets continue to fare well with remodeling additions and alterations increasing as 46 percent of respondents identified the segment as “improving.” Kitchen and bath remodeling stayed within a percentage point of its fourth-quarter 2010 levels, at 44 percent.
Product Market Pulse
Kitchens and baths, high-focus sectors usually the last to feel the wrath of consumers’ shrinking budgets, may offer a glimpse at the status of the nationwide economic recovery, the report found. Kitchens, specifically, are the most active—respondents noted increased requests for computer stations and electronics recharging areas. Plus, kitchen space continues to be integrated with family living areas and, as one in four respondents stated, is increasing in size. Among products, approximately one-third of survey participants reported renewable material flooring and countertops each as increasing in popularly, while three in 10 said they saw drinking water filtration systems’ popularity rise. Natural wood cabinets decreased from 19 percent to 14 percent of respondents noting increased popularity.
Bathrooms, while not taking much of a hit during the downturn, are not sharing in the same renewed focus on kitchens. Yet issues such as accessibility, energy-efficiency, and comfort remain top priorities for related products—LED lighting (57 percent) and dual-flush toilets (47 percent) saw the biggest jumps in popularity from the year-ago period, the survey found.
Firm Billings Down
Albeit on the upswing, business at residential design firms is still relatively weak and saw a slight decline for the fourth quarter of 2011 over the previous quarter, continuing a nearly four-year trend. New project inquiries are up, but financing woes and general uncertainty among consumers have muffled project activity.
