Renovations of older buildings in U.S. cities recently hit a record high as reflected in architecture firm billings, according to the American Institute of Architects (AIA). As of spring 2022, the majority of billings came from retrofit work, not new construction. It’s the first time in the 20 years AIA data has shown that renovations have surpassed 50%, Bloomberg reports.
In 2005, as a pre-recession building boom neared its end, renovations composed about one-third of billings. That share has been increasing steadily since 2017, when it was 44.4%, and has risen to 52% this year.
Kermit Baker, AIA's Chief Economist, says that the last time the market was so heavily weighted toward renovations was likely during the Great Depression.
One quarter of renovations are for conventional interior modernizations and upgrades, and another quarter are adaptive reuse projects that change the function and program of a building. New tenant fit-outs comprise 17.8% of renovations.
Related Stories
| Sep 21, 2010
Forecast: Existing buildings to earn 50% of green building certifications
A new report from Pike Research forecasts that by 2020, nearly half the green building certifications will be for existing buildings—accounting for 25 billion sf. The study, “Green Building Certification Programs,” analyzed current market and regulatory conditions related to green building certification programs, and found that green building remain robust during the recession and that certifications for existing buildings are an increasing area of focus.
| Sep 13, 2010
Second Time Around
A Building Team preserves the historic facade of a Broadway theater en route to creating the first green playhouse on the Great White Way.
| Sep 13, 2010
Palos Community Hospital plans upgrades, expansion
A laboratory, pharmacy, critical care unit, perioperative services, and 192 new patient beds are part of Palos (Ill.) Community Hospital's 617,500-sf expansion and renovation.
| Aug 11, 2010
New data shows low construction prices may soon be coming to an end
New federal data released recently shows sharp increases in the prices of key construction materials like diesel, copper and brass mill shapes likely foreshadow future increases in construction costs, the Associated General Contractors of America said. The new November producer price index (PPI) report from the Bureau of Labor Statistics provide the strongest indication yet that construction prices are heading up, the association noted.
| Aug 11, 2010
Best AEC Firms of 2011/12
Later this year, we will launch Best AEC Firms 2012. We’re looking for firms that create truly positive workplaces for their AEC professionals and support staff. Keep an eye on this page for entry information. +
