Are you thinking of remodeling your home or buying a home? Are you a builder or remodeler wanting to stay abreast of current home design trends? If the answer to any of these questions is yes, you may be interested in the results of a new survey conducted by the National Association of Home Builders (NAHB).
The results of that survey appear in a new book, titled “What Home Buyers Really Want,” 2024 Edition. The book was written by NAHB Assistant Vice President for Survey Research Rose Quint, who has background in research, including a master’s degree in economics and working for NAHB for 20 years. This article is a summary of a recent interview with Quint, highlighting some of the results of the survey.
Decreasing Home Sizes and Affordability
There is a growing trend toward smaller homes in the United States. Quint explained that the average size of new single-family homes has been decreasing over the past decade, from around 2,700 square feet in 2015 to just under 2,400 square feet in 2022. This decline is attributed to a combination of changing homebuyer preferences and worsening housing affordability.
Home prices have been steadily rising in many U.S. markets. Quint pointed out that the elements contributing to this pricing increase are the ongoing housing affordability crisis and the need for builders and policymakers to better adapt to market conditions.
Housing Market Trends and Strategies
Builders are cutting prices and implementing additional measures to deal with current challenges. These challenges include the increasing cost of materials and labor. Builders are addressing this by building smaller homes and offering more affordable finishes.
Also contributing to this trend is the high appreciation of existing homes in many U.S. communities. When these homes appear on the resale market, they are often priced outside the affordability range of the average local buyer.
Additionally, builders struggle with a shortage of buildable lots. A lack of buildable lots means that new homes being built today are not able to keep pace with the current demand. To address this challenge, builders are cutting prices, offering sales incentives and building more townhomes. Quint noted that the majority of builders have implemented at least one of these strategies in 2024.
Buyer Preferences for Residential Properties
A majority of buyers prefer to live in the suburbs, with 53% of those surveyed stating that’s where they want to buy their next house. The survey divided the suburbs into two categories, outlying suburbs and closer-in suburbs, with 30% and 23% of buyers preferring each, respectively. The data also shows that 25% of buyers prefer a rural area while 23% prefer the central city, but not downtown.
Quint mentioned that single-family, detached homes are the most desirable structure type, with 66% of buyers preferring them. Townhomes are the second most popular choice (16% of buyers prefer them) and multifamily units or condominiums are the least popular (only 10% of buyers). The preference for single-family, detached homes is so strong that buyers would need a 30% discount on a townhome with the same square footage, quality materials and location to consider switching their preference.
Alternative Framing Materials and Buyers
With wood being used for more than 90% of all new residential framing in the country, alternate framing materials may be a consideration. These are materials like concrete and steel that are more resistant to fire, flooding and pests. Asked if some buyers were open to consider these other materials for framing, Quint said the survey revealed that only 37% of buyers prefer lumber for framing, while 25% would prefer concrete and 23% would prefer steel.
Despite the added cost, these alternative materials were acceptable to a significant number of those surveyed. Quint emphasized the importance of research in bridging the gap between builder preferences and consumer desires. Educating consumers about the benefits of these alternative materials could lead to more adoption.
Exterior Design and Interior Upgrades
What’s the most popular exterior home design — traditional, contemporary, modern or transitional? Quint shared research indicating that there is no consensus on this. She also noted that buyers are diverse and sellers will likely find buyers for any architectural style. In terms of upgrades, she confirmed that the most popular areas of focus for homebuyers are the kitchen and primary bathroom, with over 70% willing to pay for a gourmet kitchen and 65% for a primary bathroom upgrade.
Outdoor Spaces and Home Preferences
During the pandemic, a new trend emerged of homeowners wanting to make their outdoor spaces as comfortable as their indoor spaces. This trend seems to continue, based on Quint’s view. She said it appears that a growing number of homebuyers are willing to pay considerably more for a home with a well-designed outdoor living space.
A Few More Items of Note
The survey indicates that 76% of homebuyers prefer an open kitchen design. And 60% prefer to have laundry facilities on the first floor. Furthermore, when looking at the increasing interest in multigenerational homes, the survey noted a preference based on the buyers’ racial and ethnic background.
The data also identified a growing trend of couples choosing to sleep in separate rooms. This could influence the demand for homes with one or more bedrooms than would have been sought historically by buyers.
Community Features
The survey indicated the importance of community features for homebuyers, highlighting the need for convenience, walkability and a suburban feel. Quint also mentioned that 66% of buyers want at least one home office, with 60% preferring it to be around 100-150 square feet.
To learn more about the survey, order the book at BuilderBooks.com. Type “What Home Buyers Really Want” in the search box and choose the 2024 edition of the book.
Comments