The best way to know what the next wave of homebuyers want is to ask a homebuilder.
Ask around, and you’re likely to hear energy efficient appliances and windows, granite kitchen countertops and walk-in closets. These were among the most-desired features in the nationwide homebuilders survey on home trends and millennial home preferences released earlier this year by the National Association of Home Builders.
“Storage and organizations and energy efficiency are highly wanted features and you are most likely to see them in the average home this year,” says Rose Quint, assistant vice president of Survey Research, Economics and Housing Policy at the NAHB.
No longer are features like outdoor cabinets, carpeted floors, laminated kitchen countertops and media rooms making the “must have” list. “Builders are responding to consumer preferences,” Quint adds.
Builders are taking their cue and replacing them with amenities that buyers want.
The sluggish economy of recent years and hurdles to homebuying shut out many first-time buyers, mostly millennials. Slow job growth, tight lending guidelines and credit scrutiny made it difficult for younger folks to invest in a home.
Wealthier move-up buyers, who were using their equity to buy their second home, were driving the market with their preferences. They liked bigger homes, sun rooms, media rooms and other luxury amenities.
Quint said she believes that the market is now primed for first-time buyers. Moderate home price gains in 2014 coupled with record job growth and more available credit will allow more new buyers to enter the market, and they will demand smaller, more affordable and energy-efficient homes, she says.
Although builders reigned in on newhome construction, with numbers dipping in early 2015, single-family home starts have been strong throughout the year. And newer homes on the market will cater most likely to new buyer preferences. In the NAHB survey, 75 percent of millennial buyers said they prefer single-family homes, and 46 percent respondents said they want a four-bedroom house and are willing to pay more for an energy-efficient home. Here are some of the other key trends industry experts expect to see in new homes:
Great rooms
Families today are voting for open kitchen-dining-living-family spaces.
“The kitchen is becoming the center of action in the house,” Quint says. “They want to watch the kids do their homework while cooking dinner and watching TV. They want to feel connected as a family.”
The concept of an open dining/kitchen/living space sans walls adds volume to the house and lends a much bigger look.
Energy efficiency
Beenu Sikand, an Indianapolis-area Realtor, says today’s clients prefer smaller, energy efficient homes with additional bedrooms for extended family.
“They don’t want to pay a lot on utilities,” she said.
According to the NAHB survey, Energy Star-rated windows and appliances and programmable thermostats are among the Top 10 likely new-home features this year, according to the NAHB survey. Outdoor space
Buyers want outdoor space, but not the typical massive yard, says Cathy Davis, a Realtor with Elfant Wissahickon Realtors in Philadelphia.
“They prefer roof decks or patios, or even little decks on the side,” Davis says. “People don’t have the time to care for their yards like they used to.”
Storage and organization
Walk-in closets and laundry rooms were the first two most likely features to be added to a typical single-family home this year. Home organization and storage space also are very important to buyers these days, says Quint.
“They want their linen closets and walkin closets and two-car garages to help keep their home organized,” she said.
Wallpaper … maybe!
Trends are oftentimes cyclical, and it looks like wallpaper, which went out of vogue, is now making a reappearance. Advertisements for wallpapers are picking up, says Davis. “It’s coming back, although not in a big way yet,” she says. “People are just using it for aesthetics and accent.”
© CTW Features