The average American home has gotten a lot larger over the past few decades. According to data from the U.S. Census Bureau, the median size of a single-family home in 2022 was around 2,300 square feet, or 20% bigger than a similar home in 1990.
But we may be at the end of the “bigger is better” real estate era. Rising construction costs have made it tougher to profitably build so-called McMansions, and persistently high mortgage rates have made it tougher for the average American to buy them. The median age of U.S. home buyers is at an all-time high, which means that many repeat buyers are downsizing retirees who don’t need room for children. There’s been a cultural shift, too; Zillow recently found that home buyers are seeking out smaller homes that are sized more for living than for impressing the neighbors.
So in this new era, what features do home buyers prize over square footage? Looking over survey responses, a few themes emerge: nesting, energy efficiency, outdoor space, and storage.
1. Outdoor Space: A Front Porch, Patio, Outdoor landscaping, and Exterior Lighting
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People are staying home more than ever, and they want a variety of spaces to spend time in. More and more, that means having comfortable outdoor spaces. Many prospective buyers named a front porch, outdoor patio, and landscaped yard as highly attractive home features. Exterior lighting makes outdoor space usable at night, too.
Some industry experts have theorized that this is due to the popularity of home renovation shows, on which the homes often have impressive outdoor spaces. But in the big picture, these can be high-value additions to a home. Building out and landscaping outdoor space can cost much less than building out a comparable home addition, and can increase a home’s appeal just as much.
A recent survey found that most home buyers value good neighbors as much as location or price, which makes a lot of sense when you consider that Americans are utilizing their outdoor space more and more.
2. Lower Power Bills: Energy Star Windows and Appliances; Ceiling fans
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Americans’ energy bills have risen sharply in the past year or two, so it’s no surprise that home buyers are interested in energy-efficient home features like Energy Star windows and appliances, and ceiling fans.
Ceiling fans can provide circulation and relief from the heat without resorting to air conditioning, and Energy Star appliances can reduce power consumption by up to 50%. Energy Star windows can reduce power consumption by an average of 12%, which could translate to several hundred dollars in savings over the course of a year.
Additionally, buying a home with efficient appliances is especially attractive now that most people believe appliances are becoming more expensive.
3. A Space to Clean: A Laundry Room
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The feature most frequently coveted by buyers was the laundry room. From one angle, a laundry room reflects the desire for more storage, since it provides a dedicated space for both dirty and clean laundry, equipment, and more. It’s also in line with the recent “homebody” impulse people simply don’t want to leave the house as much as they used to, whether to go to a restaurant or a laundromat.
A new laundry room is also an opportunity to upgrade the washer and dryer to Energy Star-certified models. This can have a significant impact on your electric bills, as the washer and dryer are two of the most energy-intensive appliances in the home.
4. A Space That Does It All: A Large, Multi-Use Kitchen
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Buyers increasingly want a large kitchen with room for a table. Partly this reflects the move away from formal dining rooms, which are disappearing from modern homes and apartments. According to a recent article, it’s not so much that contemporary buyers don’t want formal dining rooms; it’s that they prefer other features, like great rooms and larger living rooms, which then eat up square footage that was formerly reserved for dining rooms.
That means more families will have no real choice but to eat in the kitchen. That kitchen table can also be used for food prep, socializing, game nights, or any number of other activities; in many homes, the kitchen is the busiest room.
If there’s not room for a full table, even a breakfast bar or banquette brings a lot of appeal. There’s also a trend towards oversized kitchen islands, which could function as a dining table.
5. More Storage: Walk-in Kitchen Pantries and Garage Storage
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These features could both fall under the category of storage. The walk-in pantry, sometimes called the “Costco closet,” is one of the hottest new amenities for buyers, and garage storage ranked very highly among preferred home features.
In the big picture, this makes sense; if homes are now getting smaller, then dedicated storage is even more important. Gone are the days when families could use an extra bedroom (or two) in their McMansion for miscellaneous storage.
6. Flex Rooms and Suites
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In keeping with more time spent at home, buyers want rooms that can serve multiple purposes home office, gym or fitness room, guest or child’s bedroom, et cetera. Adaptability is a big draw here, and a key to making people feel comfortable in their home. Crucially, these rooms can also provide extra storage space.
Buyers also want suite-style bedrooms, which have easy access to a bathroom, and maybe a private balcony or patio. Extra points if it’s on the ground floor.