Architectural Services

The 21,294 Architectural services firms in the US are responsible for designing places for people to live, work, worship, learn and play. 83% of firms have nine or fewer employees. Most firms gain a significant portion of their revenue (about 81% on average) from non-residential services.

Technology Levels the Playing Field

Building Information Modeling, or BIM, has become the industry standard for projects of all sizes, because it facilitates the communication of design and construction plans across all project participants.

Green Building Supports New Development

The government has helped fuel the green building surge by providing a variety of incentives for firms and contractors who build with energy efficiency and use renewable energy.

Jul 23, 2026 - Architecture Trade Group Downgrades 2026 Outlook

• Construction spending on nonresidential buildings is expected to remain sluggish for the remainder of 2026, according to the American Institute of Architects’ (AIA) Consensus Construction Forecast released in July. The AIA forecasts that total spending for nonresidential building construction will decline by 0.3% in 2026. In an earlier forecast in January, the AIA projected that nonresidential building construction spending would rise 1% this year. Despite ongoing challenges pressuring the sector, the AIA expects spending on nonresidential building to increase between 2.2% and 3% in 2027. AIA Chief Economist Richard Branch said, "The unevenness we’re seeing in construction activity reflects very different market forces at work. Projects tied to public funding, healthcare needs, and AI-related investment are moving ahead, while sectors that depend more heavily on private financing and discretionary spending continue to face significant headwinds."
• Industrial real estate demand is strengthening as rising logistics activity, renewed interest in domestic manufacturing, and growing data center development reduce warehouse vacancies and encourage new speculative construction, according to Bisnow. US industrial leasing rose 12% year over year in the second quarter, while net absorption reached its strongest first-half level since 2023, according to Cushman & Wakefield. Developers, lenders, and investors are responding by expanding construction pipelines, particularly in major logistics markets. For the architectural services industry, increased development in industrial, manufacturing, and data center sectors could drive demand for warehouse, factory, and campus design, as well as planning and permitting services. Industry experts said greater policy certainty and federal incentives are encouraging additional site selection, land acquisitions, and new project starts, although developers remain focused on how the first wave of new projects performs.
• According to the American Institute of Architects, the newly enacted 21st Century ROAD to Housing Act creates new federal tools to expand housing production and improve affordability. The law broadens funding for housing construction, supports the conversion of vacant buildings into affordable housing, updates federal housing programs, streamlines environmental reviews, and encourages zoning and land-use reforms. It also raises multifamily loan limits, funds whole-home repair programs focused on accessibility, resilience, and energy efficiency. The legislation also aims to expand manufactured housing and limit large corporate investors from acquiring existing single-family homes. AIA said the reforms should increase opportunities for housing preservation, adaptive reuse, and new multifamily development, while helping communities deliver more affordable housing.
• Multifamily developer confidence was steady in the first quarter of 2026, according to the National Association of Home Builders’ (NAHB) latest Multifamily Market Survey. The Multifamily Production Index (MPI) was unchanged at 44 compared to the first quarter of 2024. The Multifamily Occupancy Index (MOI) decreased by 13 points to 69 over the same period. An MPI or MOI reading of 50 or more indicates that multifamily production or occupancy, respectively, is growing. Multifamily developers’ headwinds include volatility in building materials costs, high interest rates, and regulatory difficulties. While the NAHB expects a slight improvement in multifamily construction this year, the momentum is unlikely to carry into 2027.

Industry size & Structure

The average architectural firm has about 10 employees and generates $2.3 million in annual revenue.

• The industry has 21,258 firms with $48.7 billion in annual revenue and 204,000 employees.
• Sole employee firms tend to work from home-based offices in order to defray overhead expenses. Most other small to medium firms work from leased office space.
• The industry is highly fragmented with the 50 largest firms representing just 22% of industry revenue.
• Large firms in the US include HOK, William Rawn Associates, and Skidmore, Owings and Merrill (SOM).