Commercial or Residential projects? What to expect in 2023-2024
What Does the AIA say?
The AIA predicts slower growth in non-residential construction through 2023 and 2024.
In the realm of commercial projects, the real estate industry is navigating the long-term effects of the COVID-19 pandemic. Remote work continues to have an impact on office real estate, with approximately 10-20% of office stock requiring repurposing, indicating a potential shift in commercial project focus. Additionally, the emergence of climate change concerns and the resulting need for resilient buildings adds another layer of complexity and opportunity for commercial architects.
In the residential sector, the market is experiencing challenges due to housing unaffordability caused by an undersupply, restrictive zoning, and labor shortages. This situation may offer opportunities for architects specializing in residential projects to innovate and find solutions to these issues.
Plus 30% of the commercial real estate stock is being converted to residential or mixed use space with a strong emphasis on residential elements.
The National Association of Realtors suggests that the housing market value will rise in 2024
Weather an architect should expect rise in commercial or residential projects in 2023-2024 would depend also on their focus, professional skills, and their ability to adapt to the evolving needs of each sector. Given the information above, there are opportunities and challenges in both sectors, and architects should be attentive to these trends to determine their focus. Please note, however, that the information provided for 2024 are only projections and any major event could change those numbers.