News

With economic slowdown, many are focusing on smaller remodeling projects

By Kathy Jumper
Real Estate Editor
Mobile Press-Register

Architects here and nationwide say the design market has slowed just as new-home construction and real estate sales have dropped in today's economic crunch.

"For the first time in my entire 30-year career I have contractors calling me for work," said Craig Roberts, a Mobile-based architect.

A recession may also point people toward remodeling rather than new construction, said architect Pete Vallas in Mobile, who does a mix of new homes and remodeling projects.

"I have some clients who are still having me do the drawings, but are putting off starting the work until the economy comes back," Vallas said. "But if you do a project right now, you will probably get a better value because the contractors are kind of hungry."

Mac Walcott of Walcott Adams Verneuille in Fairhope said that his firm has started a new offering, 'Style Simple,' which focuses on remodeling or "staying put," in your existing house.

"I see so many of my clients stressed out because their house is not working," Walcott said. "It can be some simple steps to make it work."

The design industry nationwide reported record-low December billings in 2008, according to the Architecture Billings Index released by the American Institute of Architects. ABI figures reflect a nine- to 12-month lag time between architecture billings and construction spending, the report shows. The December ABI rating was 36.4, up from the 34.7 the month earlier. Any score above 50 indicates an increase in billings. The southern region's December score was 35.5.

Lack of financing for construction projects is a key factor in slumping demand at design firms, according to AIA's chief economist, Kermit Baker.

Local architects agree that new residential projects have slowed.

"People seem to want to add on or remodel, or restore a house," said architect Douglas B. Kearley in Mobile, who does a lot of historic renovations and remodeling, as well as some new construction.

"I don't think the economy has affected the sole proprietor," as much as the larger firms, he said. "I've finished a couple of Whitney Banks, and that's always a little lagniappe."