Architecture Billings Decline Further Amid Weak Market Conditions

WASHINGTON – October 21, 2026 – Business conditions at architecture firms weakened further in September, according to the AIA/Deltek Architecture Billings Index (ABI). The ABI score fell to 44.7, down from August’s score of 47.2, marking the largest share of firms reporting declining billings since May. While inquiries for new projects increased modestly to 53.2 in September, the value of newly signed design contracts dropped to 43.7.

Billings remained weakest in the Northeast and continued to soften in the South, while firms in the Midwest and West reported stable conditions. Commercial and industrial firms posted modest growth for a second consecutive month, but billings declined again at institutional and multifamily residential firms, with the latter continuing to see significant weakening from earlier this year.

Despite softer demand, firms maintained a relatively healthy pipeline of future work. Average project backlogs stood at 6.2 months at the end of the third quarter, down from 6.6 months at the end of the first quarter. Backlogs remained stable at 8.1 months among large firms with annual billings of $5 million or more and at 8.0 months for firms specializing in institutional projects. Meanwhile, small firms with annual billings under $250,000 saw backlogs increase from 3.1 months to 3.8 months.  Multifamily residential firms experienced the sharpest decline in backlogs, falling from 6.2 months in March to 4.8 months in September.

“This is an increasingly difficult environment for architecture firms,” said AIA Chief Economist Richard Branch. “Weakening billings are being compounded by a soft economy, challenging project financing and growing caution among clients. With fewer projects moving forward, there is little reason to expect a meaningful improvement in business conditions in the near term.”

Key ABI highlights for September include:
•    Regional averages: West (50.7); Midwest (50.6); South (43.1); Northeast (39.1); 
•    Sector index breakdown: commercial/industrial (50.9); institutional (47.6); multifamily residential (42.9); mixed practice (firms that do not have at least half of their billings in any one other category) (41.5)
•    Project inquiries index: 53.2
•    Design contracts index: 43.7

The regional and sector categories are calculated as three-month moving averages and may not always average out to the national score.

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About Deltek
Better software means better projects. Deltek is the leading global provider of enterprise software and information solutions for project-based businesses and the home of AIA MasterSpec®. More than 30,000 organizations, including 12,000 Architecture & Engineering firms, rely on Deltek for superior levels of project intelligence, management, and collaboration. Our industry-focused expertise powers project success for A&E firms of all sizes by helping them achieve performance that maximizes productivity and revenue. Learn more at Deltek.