Change and compromise are the main items on the agenda for new home buyers in 2023 and this article from the NAHB point out just what they are looking for from your company.
Manufactured, modular, and offsite construction companies need to take heed to these changing attitudes including what buyers are willing to give up to find an affordable home.
Home buyer preferences have continued to shift home building trends in the wake of COVID-19. Following a brief uptick in new home sizes in 2021, the average size of a new home dropped slightly from 2,525 square feet to 2,480 square feet in 2022, and the percentage of new homes with 3+ full bathrooms and 3+ car garages dipped to 33% and 17%, respectively. Meanwhile, the percentage of homes with 4+ bedrooms rose slightly to 48%, in part because of the flexibility in use that bedrooms can provide, with the expectation that home size and amenities will continue to grow in 2023 before dropping again in 2024.
“The decrease in new home size reflects the escalation of home prices in 2022 and builders scaling back to try to meet demand,” said Rose Quint, NAHB assistant vice president of survey research. “The move toward larger homes and more amenities in 2023 will reflect the preferences of those who can afford higher interest rates, and in 2024, size will fall back as affordability improves with lower mortgage rates and more buyers re-enter the market.”
Amenities no longer necessarily translate directly to the number of rooms or types of features within the home either — it can also be simply having a space within the home that provides respite.
Builders and designers are achieving this through walking paths and other outdoor spaces connected to the home, as well as the incorporation of natural materials and other examples of biophilic design. Builders saw a large jump in the demand for exterior amenities, such as patios, decks and porches, in 2023, along with increased demand for home offices — which appeared on the list of buyers’ most-wanted features for the first time this year.
Demand was also on the rise for more flexible and better-equipped spaces to meet buyers’ changing needs. This is true for both first-time and repeat buyers, the majority of whom prefer an open-kitchen family room. This space can be reconfigured and better utilized to provide more space for additional rooms or allow builders to incorporate higher-end components to increase the feel and function.
Other home features that resonate with both first-time and repeat home buyers include:
• Laundry rooms
• Exterior lighting
• Ceiling fans
• Patios
• Walk-in pantries
• Hardwood flooring on the main level
Housing affordability remains a struggle, which home buyers recognize. The majority of home buyers (91%) are willing to compromise to afford a home. The top three areas are:
• A smaller house
• Simpler/more basic interiors
• Fewer exterior amenities
Where does offsite and modular manufacturing stand amid a recession, and what impact does a recession have on our industry?
Trying to weather this alone is tough and that’s why Daniel Small and Gary Fleisher, the Modcoach, are hosting a Da Vinci Offsite Construction Roundtable entitled Preparing for a Recession starting Feb 9th.
Gary Fleisher is the Editor in Chief of Modular Home Source and Offsite Builder magazine. Email at [email protected]
Gary Fleisher, the Modcoach
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