Bigger Isn’t Always Better: What Today’s Buyers Are Looking For in a Home

Abstract

With the pandemic seemingly waning, mortgage rates and home prices rising, and builders struggling to get anything up in the face of supply chain shortages, there's a convincing argument to be made that home shoppers should consider seeking smaller houses. "People want spaces where they can be together." Not to be confused with tiny homes, small homes can be defined as those with 1,400 to 2,000 square feet. The National Association of Home Builders posted statistics showing that homes built in the past year are gaining in square footage. That's in contrast with about 30% of architects who work on homes for planned communities surveyed who said they were decreasing the square footage of interior rooms in 2021 residential units, according to the New Home Trends Institute by John Burns Real Estate Consulting. "People are using an expanded stair landing for an indoor bicycle or small fitness equipment. In many small home designs, the separate dining room is gone in favor of an eat-in kitchen with room for a separate table or two-tiered island with the lower portion used as a table," Nichols says. Smaller homes could save money for builders and buyers Smaller homes typically, but not always, cost less to build. Materials used in building homes cost about 23% more than they did just a year ago, according to the National Association of Home Builders.