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 | Jun 24, 2019
Clayco combines architecture and design assets into one business unit
Lamar Johnson Collaborative adds BatesForum.
Architects | Jun 14, 2019
Making public facilities more public
Municipal facilities must strike a delicate balance between openness and security.
Architects | Jun 4, 2019
Big design, small budget: These are the best small projects for 2019
Bjarke Ingels Group's prototype mountainside cabin and Fieldwork's forest pedestrian bridges are among 12 projects honored by AIA's Small Project Practitioners group.
Architects | Apr 26, 2019
Designing for the final frontier: Space architecture
Colonizing Mars is an exciting possibility in the not-too-distant future, and architects will play a vital role in making it a reality, despite the plethora of challenges that need to be overcome.
Architects | Apr 12, 2019
Bipartisan 'Invest in America Act' gains industry support
The bill would attract as much as $125 billion investment for buildings, infrastructure.
Office Buildings | Apr 8, 2019
It’s time for office amenities to get to work
Amenities with the greatest impact on effectiveness and experience are those that directly support the work needs of individual employees and their teams.
Industry Research | Apr 8, 2019
New research finds benefits to hiring architectural services based on qualifications
Government agencies gain by evaluating beyond price, according to a new Dodge survey of government officials.
Architects | Mar 17, 2019
HMC Architects sets up a ‘design lab’ to explore new ideas
The goal is for project team members to collaborate earlier to inspire innovation.
Architects | Mar 12, 2019
Thrown a curve: Fitting a restaurant into spherical dome was the design challenge for Willmott’s Ghost
The Seattle eatery nests inside the conservatories on Amazon’s massive campus.
