Architectural activity shifts to more medium-sized, diverse projects, report says

Business Record Staff Aug 13, 2025 | 6:10 am
1 min read time
258 wordsAll Latest News, Real Estate and DevelopmentArchitectural activity has involved a more diverse variety of medium-sized projects in small communities during the second quarter of 2025, according to the American Institute of Architects (AIA) Iowa Chapter’s market survey and report for the second quarter.
The report is compiled from responses from architectural firms across the state. The architectural industry is considered to be an indicator for construction activity for the next nine to 12 months.
The survey results indicate a shift in active projects, with fewer firms handling a high volume of projects — more than 21 — and a growing number working on six to 10 active projects.
Average market optimism was 52% in the second quarter, a slight increase from the previous quarter, the report showed.
Jessica Reinert, executive director of AIA Iowa, said the shift to a more diverse portfolio in smaller communities, along with optimism in the market, “suggests a resilient and adaptable profession.”
“While we continue to monitor concerns around the overall economy and labor prices, we are encouraged by the opportunities to lead in sustainable design and creative adaptive reuse projects that will strengthen our communities,” she said in a news release.
Highlights from the report include:
- A rise in out-of-state work, with the average share increasing to 21% from 18% in the first quarter.
- Medium-sized projects ($1 million-$10 million) continue to dominate the market, accounting for 45% of active projects.
- “Overall Economy” and “Labor Prices” are cited as the top business concerns.
- New construction makes up the majority of projects (53%) versus adaptive reuse (47%).