A recent NAHB study on home buyer preferences* found that a single-family detached home remains the first purchase option for two of every three buyers.  Far smaller shares are looking to buy a townhome (16%), a multifamily home (10%), or a manufactured home (5%). In the face of such strong preference for a detached home, and given the significant growth in home prices and lot values in recent years, the study aimed to understand what size discount would give buyers a strong enough incentive to buy a townhouse instead of a detached home.  The question specified a critical assumption: the townhouse would be in the same location as the detached home, have the same square footage of finished space and include the same quality materials.  In other words, the townhouse would be comparable to the detached home in every practical way except for the size of the land around it. Our findings show that, on average, buyers would need a 30% discount to consider buying a (mostly) comparable townhouse instead of a detached home.  Yet previous NAHB research has shown that the finished lot only accounts for about 18% of the price of a new detached home.  This means that in most cases, it is simply not feasible for builders to offer a 30% discount for a townhouse of the same size, quality and location as a detached home– even one sitting on the smallest possible plot of land. *  What Home Buyers Really Want, 2024 Edition sheds light on the housing preferences of the typical home buyer and is based on a national survey of more than 3,000 recent and prospective home buyers.  Because of the inherent diversity in buyer backgrounds, the study provides granular specificity based on demographic factors such as generation, geographic location, race/ethnicity, income, and price point. Discover more from Eye On Housing Subscribe to get the latest posts to your email.

According to the latest What Home Buyers Really Want Study*, the vast majority of home buyers are looking for a home with at least one home office (or space dedicated to work/study).  More specifically, 66% would prefer to buy a home with exactly one home office, 13% want at least two offices, and 20% want none (Fig. 1). As homes continue to get smaller, understanding how much square footage buyers want to dedicate to a home office is a must.  When asked, 59% of buyers interested in having a home office said it should be medium size (100 to 150 square feet).  Much smaller shares of 22% and 19%, respectively, want the home office to be large (more than 150 square feet) or small (under 100 square feet). More granular findings show that younger buyers as well as wealthier buyers are particularly in favor of home offices. Among Gen Z buyers, for example, 90% want at least one home office, compared to 75% of Boomers.  Likewise, 92% of buyers in the $150,000+ income bracket would like at least one office, compared to 65% among those earning under $50,000. *  What Home Buyers Really Want, 2024 Edition sheds light on the housing preferences of the typical home buyer and is based on a national survey of more than 3,000 recent and prospective home buyers.  Because of the inherent diversity in buyer backgrounds, the study provides granular specificity based on demographic factors such as generation, geographic location, race/ethnicity, income, and price point. Discover more from Eye On Housing Subscribe to get the latest posts to your email.

According to the latest What Home Buyers Really Want Study*,  home buyers have rather diverse preferences when it comes to the architectural style of their home.  In fact, there is no national consensus on exterior design.  At best, a plurality of 34% would prefer to purchase a ‘traditional’ home (rooted in historic styles), while a smaller 26% would rather buy a ‘contemporary’ home (clean lines, sloped roofs, expansive windows).  Far smaller shares of 17% and 12% of buyers, respectively, would choose a ‘modern’ home (bold, boxy, flat roofs) or a ‘transitional’ home (contemporary design with traditional cues) (Fig. 1). Like exterior design, buyers also have divergent preferences for the material used to frame the home.  A plurality of 37% would like wood, 25% concrete, and 23% steel to be the framing material on their home (Fig. 2).  Importantly, the 48% who preferred concrete or steel did so despite the explicit notice that those choices would involve $15,000 to $35,000 in additional costs. This is an important finding, given than over 90% of new homes built in the United States use wood framing.  It provides builders an opportunity to explore diversification into non-lumber alternatives, especially as the U.S. Commerce department is poised to increase tariffs on Canadian lumber from 8% to 14% in 2024. *  What Home Buyers Really Want, 2024 Edition sheds light on the housing preferences of the typical home buyer and is based on a national survey of more than 3,000 recent and prospective home buyers.  Because of the inherent diversity in buyer backgrounds, the study provides granular specificity based on demographic factors such as generation, geographic location, race/ethnicity, income, and price point.

The two most wanted features in a home are a laundry room and a patio, according to NAHB’s latest study on buyer preferences—What Home Buyers Really Want Study*.  Buyers in the study were given a list of 200+ features of the home and the community and asked to rate each one on a consistent scale (essential, desirable, indifferent, do not want) in order to produce comparable results. The most wanted list consists of 13 features rated essential or desirable by at least 80% of all home buyers in the study (Fig. 1).  In addition to the laundry room and a patio, both wanted by 86% of buyers, the list also includes: Three additional outdoor features: exterior lighting (82%), a front porch (81%), and landscaping (80%). Two in the kitchen: table space for eating (80%) and a walk-in pantry (80%). Two related to energy-efficiency: ENERGY STAR windows (83%) and appliances (80%). Plus, ceiling fans (81%), garage storage (81%), hardwood for the main level (81%), and a full bath on the main level of the home (80%). The most wanted list in Figure 1, although valuable and informative, doesn’t change much over time.  Clearly, builders ought to try to incorporate as many of these features as possible, given that 80%+ of buyers have a strong preference for them.  But are there other features, perhaps not as widely popular, that are growing on home buyers? Figure 2 shows the 10 features with the most growth in popularity in the last 10 years—all have seen the share of buyers rating them essential/desirable increase by at least 25 points since 2012.  At the top of this most-growth list are security cameras, now wanted by 76% of buyers, 36 points higher than a decade ago, followed by a wired home security system (up 35 points) and a programmable thermostat (up 31 points). Technology is the common thread through all the features gaining the most favor with buyers in the last 10 years.  Figure 2 also allows us to glean that buyers are leaning on technology primarily for two purposes: to increase the safety of their home and to save energy by efficiently controlling the temperature of their home. *  What Home Buyers Really Want, 2024 Edition sheds light on the housing preferences of the typical home buyer and is based on a national survey of more than 3,000 recent and prospective home buyers.  Because of the inherent diversity in buyer backgrounds, the study provides granular specificity based on demographic factors such as generation, geographic location, race/ethnicity, income, and price point.