ThinkLab Explains Why the Luxury Residential Sector is Due to Slow-Down
The real-estate market is, by all accounts, still booming. And the Interior Design Rising Giants are bullish on residential, projecting 45% growth for 2022. But in contrast, the 100 Giants—despite experiencing a solid 9% category uptick in 2020 (amidst a 6% overall decline)—saw the luxury residential sector shrink 43% last year. And they expect 2022 to be just as dire in terms of category growth, predicting a shocking -37% change for 2019 through 2022.
What accounts for this discrepancy between the two groups of Giants firms? Primarily it’s a matter of focus. The Rising studios have always skewed more residential, whereas the 100 are now re-directing their energy back into commercial verticals as those markets recover.
“With all the procurement challenges, it’s harder than ever to be a designer now” – Traci Zeller, Traci Zeller Interiors
But ThinkLab data suggests we should all expect a resi slowdown, with single-family and improvements dipping the most. Clients and designers alike are unwilling to overpay for rising labor and material costs or to fight through the supply-chain issues severely compromising project delivery—meaning jobs are being put on hold to ride out the storm.
Design Evolution: What Gen Z Wants in the Workplace
ThinkLab presents forthcoming research on what Gen Zers are looking for in the architecture and design workplace.
Interior Design Unveils the Top 100 Giants 2022
See Interior Design’s Top 100 Giants of 2022.
Cruz Garcia and Nathalie Frankowski Offer 5 Notes on the Future of Design
This month ThinkLab is pleased to welcome guest authors Cruz Garcia and Nathalie Frankowski as they invite us to (re)consider the role of architecture and design in the construction of a better future.