Why do Architects Make so Little?

Despite the skills required, and the responsibilities architects hold, architects make relatively little money.  This is due to a difficulty quantifying what architects do, an environment of too many architects and not enough jobs, and issues with scaling the business side of the profession.  This mixed with the stress and long hours associated with architecture can lead many to frustration.

Quantifying What Architects Do

Often in a project, it will suddenly occur to the client that the quantifiable aspects of the project are not done by the architect.  The shop-drawings (often the only drawing that a contractor will build from) are drawn by a construction administrator, the structural calculations are usually done by a structural engineer.  The HVAC layout is designed by a mechanical engineer.  The furniture layout is designed by an interior designer.  The electrical layout is designed by an electrical engineer.  Usually the landscaping is designed by a landscape architect or design – and so much of the specificity of the project is given over to consultants.  There are curtain consultants, theater consultants, school consultants, security consultants – the list goes on.  The long list of names and professions attached to a project will often leave the client asking what, if anything, is the architect doing?

Of course, if you are reading this, you are probably either an architect, or at least are familiar with the profession.  You know there are plenty architects do.  Without them the project would fall apart!  But when an architect is asked what they do, they often provide vague, ethereal answers.  Something related to the grand scheme of the entire project, the master design.  They might tell the client how they coordinate all the other professions.  And so, when the client is asked to sign on the dotted line, it is easy for them to justify 6% of the budget going towards the structural engineers – they help keep the building upright!  Of course they’re important!  But, what again is the architect doing?

Too many architects and not enough money

Cast your mind back to your highschool economics class.  One of the first things you were taught is supply and demand.  These same laws of economics apply to the architecture profession.  Being an architect is often thought of as a ‘dream’ job.  Many, many people work very hard to get into this profession.  In the US alone there were 116,242 licensed architects in 2019.  This is a lot for a profession that takes a lot of work, a lot of dedication, and usually a masters’ degree to get licensed.  In other words – there is a lot of supply – a large quantity of architects and (relatively) competent designers.  And despite the fact that demand is high, with every major building needing several architects working on it, supply is even higher.  This keeps wages relatively low.  Why pay a lot for an architect when someone else will do it for even less?  And clients have the same view – why pay 7% of a project to an architect when another will come along and do it for 4.5%?  

Issues with scaling

Architecture is regional, and case specific.  Not a manufacturing line.  Almost every situation that needs a solution from an architect is a unique situation.  It takes creativity, and a firm understanding of precedent, to solve these unique problems.  They are inherently not problems that can be solved with generic solutions.  This dilemma is a double edged sword – on one hand it keeps architects in business.  Their unique skill-set and understanding of the built environment is essential to solve these problems.  And yet, on the other, it makes architecture businesses and design related jobs hard to scale.  It isn’t an ecommerce business where the owner can scale from their first customer to their 1000th in a month.  At any one moment an architect can only be working directly with one customer – their client.  Now don’t get me wrong – an architect may have several clients simultaneously to work with – but at any single moment that architect is only working directly on one of their projects.  This gives a very clear issue with scalability.  The architect can only make a limited amount of money because their client only has a limited amount of money.  On a residential project, the client will rarely wish to pay their entire life-savings for their custom home.  They may take out a mortgage and be able to afford a half a million dollar project.  At first this seems like a lot!  However, from this large dollar amount, pieces get cut out for the actual construction, for consultants, for materials, etc.  Eventually only 6%, if you’re lucky, is left over for the architecture services.  But still, not all this money goes to one specific architect!  The architecture firm will have operating costs – professional fees, hardware, computers.   Then part of this money will go to non-design professionals at a mid sized to large firm, to human resources, to the IT personnel.  From here some will be used to pay interns that worked on the project.  And now, and only now, can a portion of that money be paid to the architect on record.  That half a million dollars suddenly seems like a lot less.

How to make more money

And so the million dollar question (pun intended): how to make more money.

For a professional architect there are two main possible sources of income.  There is working for a firm and making money in the traditional method of working on projects and being paid a salary.  And there is the less traditional method of leveraging the skills that an architect has to make money in other means.  Both of these methods have large potential, so let’s dive a little deeper into each one.

The traditional method that architects make money is to design buildings (duh).  This is what architecture is.  Hopefully you’re asking yourself, “wait, there’s another way architects make money?”, and we’ll get to that in a second.

Via the traditional route, an architect will design a building for a client, and the client will pay the architect for this service.  Most architects do this working for a firm that they have no ownership in.  There are several ways to increase earning potential through this traditional career path.

The first is to niche down.  This means to learn a specific skill within architecture to a high level of competence.  In my case, I decided to learn how to create 3D renderings to a high degree of skill.  I spent every evening for months working on my own 3D rendering projects, and during the day time it became a massive asset for the firm I was working at.  Niching down like this does two things.  First, it separates you from the crowd of people who are pretty good at a lot of stuff in architecture, but nothing springs to mind when you hear their name.  You want something memorable to separate you from everyone else.

Second, it will make you a major asset.  If you can do something that nobody else can do, what you now offer is invaluable.  Even if somebody is ‘ahead’ of you in their career, if you have a skill that they don’t, and they are simply pretty good at a lot of stuff, you have potential to be more valuable than they are in a professional sense.  Fundamentally, you become much more irreplaceable.  Taking anything to that degree of skill makes your specific skill-set much harder to replace.

In architecture there are many niches that are very useful to become an expert at .  As I mentioned, I have worked on refining my skills in 3D modelling and 3D rendering, but many people become experts at understanding the building code, at construction details, at flying drones and creating 3D scans, and so much more.

The other method of making an income through architecture is the non-traditional way.  By this, I simply mean any income that derives from a skill related to, or knowledge about, architecture – other than specifically designing for a single client.  This non-traditional category is a very large one – it encompasses many different sources of income.  But essentially, it comes down to working as more of an entrepreneur than a traditional designer.  The most common career path that architects take when they become disillusioned with design, is to begin work as an architect as developer.  This means working, often in your local area, to design and develop buildings.  Then either sell these, or often lease them out.

This can be a very risky venture, but also has high potential for big payoff.  Successful developers are doing very well for themselves, and it’s a path architects often have an easier time following than people with other backgrounds.  The skills learned working as an architect are invaluable to developing, and can help give you an edge in a very competitive field.

The next non-traditional method of revenue for an architect is to create a product.  I have intentionally left that sentence vague, as a product can be absolutely anything – but the key factor here is that it is something scalable.  As we discussed earlier in this article, one of the key factors holding back architects from moving to the next level is issues with scaling.  If you can break through this barrier, suddenly the income ceiling moves a lot higher.

As I said a second ago – a product could be absolutely anything.  It can even be architectural sets.  In todays’ world, many architects design and sell their most refined designs online, in whole sets.  These can sell for hundreds to thousands of dollars, and the venture is inherently scalable.  Anybody who wishes to build your design will simply buy a pdf.  However, there are many other possible products to sell, from physical designer pens and pencils, to even online courses where you teach something that you are passionate about – the possibilities are endless.

Final Thoughts

There is clearly an issue in the architecture profession today with income.  Many design professionals feel highly underpaid.  The combination of architects feeling unfairly compensated for their work, along with the intensity associated with becoming a licensed architect, leaves many in the profession asking why this situation exists.

As we saw earlier in this article, a combination of clients not having a firm understanding of what architects do (which is always an issue when they are paying your bills), along with a large amount of architects in the profession, and issues with the profession not being scalable, has led wages to be below what many are happy with.

But all is not lost!  With the skills and experiences that are accumulated by working in design, there is much that an architect can do to expand their income.  Primarily, there are two ways an architect can make more money – by leveraging their skills in a traditional job of designing buildings project by project, and by applying their skills outside of a firm, in ventures such as developing or e-commerce.

Links and References
If you’re interested in reading more on this topic, check out some of the links below.

This is an example of an architect who plies his craft to generate income in a non-traditional method.

This is a great article by ArchiSnapper on alternative methods of architects making money.

If you want varied opinions on the topic, check out this discussion on Archinect.

Here is an equally controversial discussion on Reddit. And here is one on Quora.