AIA Home Design Trend Survey: Energy-efficient products and systems remain popular despite economic concerns

Washington, D.C. – September 15, 2010 – The troubled housing market has homeowners concerned about affordability with an increasing preference for functionality over extravagance in special function rooms and home features. There also continues to be a strong willingness to invest in energy efficient products and systems to help reduce utility costs. These findings are from the American Institute of Architects (AIA) Home Design Trends Survey for the second quarter of 2010 that focused on emerging home features: systems, technologies and function rooms in the home.

“As the overall economy has slowed in recent years home offices have become the new home theaters,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “Homeowners are placing a far greater priority on specialty rooms that get the most use, as well as incorporating outdoor living elements within their lifestyles.”

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AIA Home Design Trends Survey highlights	2010	2009
Outside living rooms	41%	n/a
Home offices	34%	43%
Mud rooms	17%	25%
Au pair / in-law suites	2%	7%
Hobby / game rooms	-9%	9%
Home theaters	-38%	-19%

(% respond. report. popularity of room “increasing” minus % report. “decreasing”; Q2:2010)

Products	2010	2009
Energy-efficient	77%	80%
Low maintenance	68%	72%
Tank-less water heaters	68%	70%
Water saving	57%	62%
Synthetic materials	55%	59%
Recycled materials	47%	47%

(% respond. report. popularity of products “increasing” minus % report. “decreasing”; Q2:2010)

Systems / technologies	2010	2009
Energy management	50%	40%
Solar panels	49%	55%
Geothermal heating/cooling	47%	46%
Wireless	42%	46%
Back-up power generation	34%	n/a
Water reclamation	33%	31%

(% reporting popularity of system “increasing” minus % reporting “decreasing”; Q2:2010)

Baker added, “High levels of adoption for certain products and systems have not yet taken off to a high degree, but residential architects are reporting that saturation rates are likely to rise substantially in the next few years as demand continues to rise and prices continue to fall.”

Special home features	2010	2009
Alt. insulation (e.g. panels; foam)	67%	68%
Extra insulation	65%	65%
Ramps / elevators	33%	37%
1st floor master bedroom	44%	48%
Easy-to-use features	32%	36%

(% reporting popularity of system “increasing” minus % reporting “decreasing”; Q2:2010)

Housing market business conditions

On the heels of recent quarters of business conditions pointing to a recovery in the housing market, there was a fall off in billings at residential architecture firms in the second quarter of 2010. The national billings index was 41, following a two-year high of 50 during last quarter. Inquiries for new projects also fell sharply from 62 to 47.

“This decrease was triggered by a general back tracking in the overall economy, but was also exacerbated by the home buyer tax credit that expired at the end of April,” Baker noted.

Specific construction segments	2010	2009
Kitchen / bath remodeling:	29%	25%
Additions / alterations:	22%	26%
First-time buyer / affordable home market:	-24%	-13%
Move-up home market:	-32%	-35%
Custom / luxury home market:	-39%	-45%
Townhouse / condo market:	-51%	-49%
Second home:	-62%	-70%

(% of respondents reporting sector “improving” minus % reporting “weakening”; Q2)