One byproduct of the downturn is that more architects are setting up on their own as sole practitioners, perhaps investing redundancy payoffs in start-up studios. However, many are missing out on countless opportunities by sticking to residential projects, according to a leading publisher. 

Publisher of the Directory of Australian Architects, Eral Goullet, said she had noticed a sizeable increase in the number of solo operators in the last 12 months, but that all of them, without fail, did solely residential work. 

"Having just completed an update of the Directory of Australian Architects, which involved phoning some 2600 firms, it is interesting to see more one person firms emerging," she said. 

"The most disappointing aspect of this is that, almost without exception, they are doing residential work -homes and units. They don't look further to see how going against the flow and doing something different might actually get them more work, especially if they become seen as experts in a niche area."

Goullet said her observations were that bigger firms are doing a range of projects, across the board, meaning the smaller ones are missing out on opportunities.

In the past year the residential market has felt the full hit of the global financial crisis, with numerous residential projects put indefinitely on hold. 

In the US firms are increasingly diversifying their offerings to stay alive, Architecture & Design reported on Friday that more firms are diversifying into urban design, planning, education and aviation to boost its billings and break into new markets.