Demand for more space has increased dramatically among both homebuyers and renters, underscoring the extent to which consumer preferences and priorities have changed as a result of the pandemic. 

New second-quarter data from the American Institute of Architects shows that homeowner interest in larger homes has ticked up over the last 12 months, a change that's correlated with a sharp increase in demand for accessory dwelling units. Homeowners are also increasingly looking to build out outdoor space with sheds, barns, and pool houses, and are finishing previously untouched spaces like basements, attics, and garages. 

"Since households are doing more at home, they have been looking for more space during the pandemic. This has included focusing more activities outdoors, and adding other buildings to their property," said AIA Chief Economist Kermit Baker, in prepared remarks. "The overall strength of the residential market has driven project backlogs at residential architecture firms to pre-pandemic levels."