Q2 2025
Architecture Industry Insights
This quarterly report highlights the trends and strategies architects need to address today’s challenges. From AIA leadership updates to key market data, it provides actionable, must-read insights to guide your practice and decisions.
Topics
Q2 2025 National Billings
Month By Month Indicators
Regional Trends & Sector Snapshot
Economic and Practice Insights
Where to Watch in 2025
Q2 Summary
Curated by Ed Akins II, AIA, LEED AP Principal Architect, cove
Q2 2025 National Billings
! !
FIRM BILLINGS REMAIN IN DECLINE, BUT PACE IS SLOWING
All three months of Q2 saw ABI scores below 50, indicating a continued decline in architecture firm billings. However, the rate of decline slowed over the quarter:
- May: 47.2 — cautious optimism returns
- June: 46.8 — a softer landing than earlier in the year
OVERALL: Fewer firms are reporting declines, and inquiries are finally rising.
Month By Month Indicators
! !
KEY INDICATORS AT A GLANCE
Billings | 43.2
Design Contracts | 43.0
Project Inquiries | 47.2
April:
- Billings | 47.2
- Design Contracts | 45.9
- Project Inquiries | 51.4
June:
Regional Trends & Sector Snapshot
REGIONAL TRENDS
The South region emerged as the strongest performer in Q2, breaking the 50 mark in June (50.6) and inching toward recovery throughout the quarter.
- South: 49.2 → 50.6
- West/Midwest/Northeast: Hovering in the mid-40s all quarter, with slower but steady declines
SECTOR SNAPSHOT
Institutional shows resilience, multifamily struggles; by June, sector billings looked like this:
- Institutional: 46.3 → 49.2
- Commercial/Industrial: 40.5 → 47.4
- Multifamily Residential: 46.1 → 43.8
Multifamily continues to decline, while institutional firms are stabilizing and inching toward positive growth.
Economic and Practice Insights
ECONOMIC SIGNALS
Jobs: Holding Steady, but Uneven for Architecture
Nonfarm payrolls added:
- April: +177K
- May: +139K
- June: +147K
Architectural services employment:
Mostly flat in Q2
+300 net jobs added YTD
Continues to complicate project funding, hiring, and development.
Inflation
Tick up in June to 2.7% YoY, led by gas, shelter, and food
Evaluate hiring needs
Firms are also using this data to guide service fees, promotions, and profitability planning.
PRACTICE INSIGHTS
- Determine over/underwork
- Reassign staff
Staffing Status in July
- 64% appropriately staffed
- 24% understaffed (especially smaller/mid-sized firms)
- 12% overstaffed (particularly larger and multifamily-focused firms)
WHERE TO WATCH IN 2025
- South region continues to show the earliest signs of recovery
- Institutional work is likely to rebound first
- Design inquiries are rising, but conversion to contracts remains slow
- Firms that optimize internally (staffing, tech, market alignment) will be best positioned to weather uncertainty
In Summary
AIA ABI (Q2) – Declines Continue, But Momentum Builds
Architecture billings remained below 50 throughout Q2, signaling continued revenue declines — but the pace of decline slowed, with May (47.2) and June (46.8) improving from April’s low of 43.2. The South region showed the first signs of recovery, with billings rising to 50.6 in June — the only region to report growth this quarter. Institutional and commercial/industrial firms saw softening stabilize, while multifamily residential billings declined further. Firms Tighten Operations and Watch Staffing Nearly 70% of firms track staff utilization, using this data to guide project staffing, hiring, and workload distribution. 64% of firms report being appropriately staffed, while smaller firms remain most likely to report understaffing by as much as 30%. Firms are focusing inward — optimizing operations and shifting staff between sectors to stay nimble.
What People Are Watching
Design inquiries rebounded in May, suggesting client interest is returning — even if contracts are lagging. Inflation ticked up to 2.7% in June, and project financing remains tight, contributing to hesitancy in project approvals. The architectural community is cautiously optimistic, watching regions like the South and sectors like institutional for signs of broader recovery in the second half of 2025.
Meet the Expert
Ed Akins II, AIA
cove Principal
Ed Akins II, AIA is an architect and educator with a passion for sustainable design and innovative thinking. A former Sustainable Fellow and Interim Chair of the College of Architecture and Construction Management at Kennesaw State University, he holds a Master of Architecture from Georgia Tech and has earned multiple industry accolades.