What Home Buyers Really Want, 2021 Edition

By Rose Quint

This updated version of What Home Buyers Really Want, 2021 Edition -- based on a comprehensive nationwide survey of recent and prospective home buyers -- is more essential than ever before. In the wake of a pandemic unprecedented in modern times, this intensive research on home buying preferences contains novel insights brought about by a sea change in how people live and work. The concept of what a home is and what is now expected from it have been transformed over the course of several months and, naturally, preferences have adapted. This is an invaluable resource for those that work to deliver a home and community that buyers want and are willing to pay for. Features, technology, community amenities, and how these preferences differ based on demographic factors like age, race/ethnicity, geographic location, income or price point -- it's all inside. Just a few of the features home buyers want: preference for a newly-built home over an existing home; a single-family detached home; open layouts; specialty rooms such as a laundry room, dining room, great room, and a home office; stone and brick home front exterior walls; and full bath on the main level.

• Language: English
• Publisher: BuilderBooks
• Release date: Feb 22, 2021
• ISBN: 9780867187847

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Front Cover of What Home Buyers Really Want, 2021 EditionBook Title of What Home Buyers Really Want, 2021 Edition

What Home Buyers Really Want, 2021 Edition

BuilderBooks, a Service of the National Association of Home Builders

Disclaimer

This publication provides accurate information on the subject matter covered. The publisher is selling it with the understanding that the publisher is not providing legal, accounting, or other professional service. If you need legal advice or other expert assistance, obtain the services of a qualified professional experienced in the subject matter involved. The NAHB has used commercially reasonable efforts to ensure that the contents of this volume are complete and appear without error; however the NAHB makes no representations or warranties regarding the accuracy and completeness of this document’s contents. The NAHB specifically disclaims any implied warranties of merchantability or fitness for a particular purpose. The NAHB shall not be liable for any loss of profit or any other commercial damages, including but not limited to incidental, special, consequential or other damages. Reference herein to any specific commercial products, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favored status by the NAHB. The views and opinions of the author expressed in this publication do not necessarily state or reflect those of the NAHB, and they shall not be used to advertise or endorse a product.

© 2021 by NAHB. All rights reserved. This What Home Buyers Really Want, 2021 Edition is a copyrighted work owned by the National Association of Home Builders of the United States (NAHB). Without advance written permission from the copyright owner, no part of this book may be reproduced, distributed, or transmitted in any form or by any means, including, without limitation, electronic, optical or mechanical means (by way of example and not limitation, photocopying, or recording by or in an information storage retrieval system). For information on permission to copy material exceeding fair use, please contact: BuilderBooks, 1201 15th Street NW, Washington, DC 20005-2800. Phone [phone].

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Published in the United States of America

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ISBN-13: 978-0-86718-783-0

eISBN-13: 978-0-86718-784-7

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Table of Contents

TABLE OF CONTENTS

ACKNOWLEDGEMENTS

EXECUTIVE SUMMARY

1 IMPACT OF COVID-19 ON PREFERENCES

Buyers Shift Preference for an Outlying Suburb

Minorities Drive Increased Interest for the Suburbs

Pandemic Impacted Housing Preferences of 25% of Home Buyers

Households with Teleworkers/Virtual Students Are Likeliest to Be Impacted by Pandemic

26% of Home Buyers Want Larger Lots Because of Pandemic

21% of Home Buyers Want Larger Homes Because of Pandemic

More than 75% of Home Buyers Watch Virtual Home Tours

2 HOME TYPE, PRICE & SIZE

Single-family Detached Homes Remain Top Preference

Preference for New Homes Is Highest Since 2007

Buyers Have Diverse Preferences for Exterior Design

Buyers’ Expectations Fall Short of Actual Price Increases

Buyers Want A Bit More Space

Older Buyers More Willing to Accept Smaller Lots

3 ROOM LAYOUT & DESIGN

The Preferred Layouts are Open, Especially to the Kitchen

Preferences Shift Slightly from Partially to Completely Open Designs

Younger Buyers Prefer Taller Structures

Basements More Popular in Cooler Climates

A Plurality of Buyers Want Three Bedrooms

More Buyers Now Want Fewer Bedrooms

Two Baths the Most Popular Option, Except Above $500,000

Slight Trend Toward Homes with More Baths

Strong Plurality of Buyers Want a Two Car Garage

Wealthy and Minority Buyers Both Looking for Multi-Generational Housing

4 THE MOST WANTED—AND UNWANTED—FEATURES

Laundry Room & Exterior Lighting Top the Most Wanted List

Popularity of the Most Wanted Features Has Been Largely Stable

Ceiling Fans Are Most Essential, But Not in All Divisions

Elevators and Glass Walls Top the Unwanted List

Resistance to Features Fades Among Homes That Are More Expensive

5 KITCHEN & BATHS

Most Buyers Want Well-Equipped Kitchens

Younger Buyers Drive Demand for Some Kitchen Features

More than One-Third Do Not Want Laminate Countertops

No Majority Opinion on Color of the Kitchen Cabinets

Most Want Stainless Steel Appliances

Most Buyers Prefer Granite for Kitchen Countertops

Most Buyers Want Primary Bathrooms Loaded with Features

Some Bath Features are Only Popular Among Younger Buyers

Dual Toilets is Most Unwanted Bath Feature

6 WINDOWS, DOORS, FLOORING & DECORATIVE FEATURES

Buyers Want Energy-Efficient Windows

Experienced, Older Buyers More Likely to Want ENERGY-STAR Windows

Skylights & Floor-to-Ceiling Windows Are Polarizing Features

Floor-to-Ceiling Windows is Most ‘Unwanted’ Window Feature

63% Each Want a Sliding Patio Door and a Hinged/French Door

Sliding Patio Doors Are More Popular on the Coasts

Exterior Doors Not Wanted

About a Quarter of Home Buyers Want A White Front Door

Hardwood is King on the Main Floor

Cork Flooring Is the Least Popular Flooring Type

Most Home Buyers Want a Ceiling Fan

Fireplaces and Built-In Kitchen Seating Top the ‘Do Not Want’ List

7 SPECIALTY ROOMS & FEATURES

A Laundry Room Cleans Out the Competition

Home Offices Especially Popular among Affluent, Younger, Married Couples

Separate Family Room Is Most Wanted in Two Coastal Divisions

Exercise, Media, and Game Rooms Wanted by the Young & Wealthy

Nearly Half of Home Buyers Reject a Wine Cellar

Large Shares of Boomers Do NOT Want Two-Story Concept Rooms

Garage Storage Tops the Specialty Features List

Specialty Features are Important to Some Niche Groups

More than Half of Home Buyers Do NOT Want Elevators or Glass Walls

Most Home Buyers Want Home Office and Exercise Room 100 Square Feet or Larger

8 ACCESSIBILITY & EXTERIOR FEATURES

A Full Bath on the Main Level Remains Most Popular Accessibility Feature

Age Directly Impacts Desire for Some Accessibility Features

Accessibility Features Would Not Cause Most Home Buyers to Pass on a Home

Most Buyers Are in Favor of Age-Restricted Communities

Exterior Features Rank High on Buyers’ Wish List

Outdoor Kitchens Are Rejected by 3 out of 10 Buyers

A Majority of Buyers Prefer Stone or Brick on Front Exterior

Geography Matters When Choosing Front Exterior Material

Nationally, Stucco is Least Wanted Front Exterior Material

9 GREEN HOMES & FEATURES

Concern for the Environment Doesn’t Mean a Home Can Cost More

Buyers Will Pay for Energy Savings, Within Reasonable Limits

Other Green Programs Slowly Gain in Recognition on ENERGY STAR

A Majority of Buyers Will Pay $500 for Energy and Wellness Certifications

Buyers Like ENERGY STAR and Efficient Lighting

Buyers Dislike Plant-Covered Roofs; Indifferent about Resource Conservation

Heating with Electricity, Cooking with Gas

Buyers Choose Many Green Alternatives, but Strongly Prefer Cul de sacs

In Several Cases, Boomers are More Likely to Choose Green

10 TECHNOLOGY IN THE HOME

Temperature Control and Security Top the Tech Wish List

At the High End of the Market, Tech Becomes Essential

Kids Drive Demand for Many Tech Features

Charging Station Only Tech Feature Unwanted by Over 30 Percent of Buyers

Boomers Averse to Some Types of Technology

11 CHOOSING A COMMUNITY

Popularity of Community Areas to Play Sports/Exercise Increases

Income Drives Demand for Many Community Features

Four Features Define a Desirable Community for Every Generation

Daycare Center is Most Unwanted Community Feature

12 TRADE-OFFS BUYERS ARE WILLING TO MAKE

Fewer Home Buyers Are Willing to Compromise on Space

Most Home Buyers Want Amenities Included in Base Price

Amenities Outweigh Space for Home Buyers

13 SURVEY METHODOLOGY & RESPONDENT PROFILE

Sample Design

Weighting

Statistical Testing

Profile of Respondents

APPENDIX A

Detailed Tables

APPENDIX B

Survey Questionnaire

Acknowledgments

What Home Buyers Really Want, 2021 Edition is produced by the NAHB Economics & Housing Policy Group. The primary goal of the study is to provide NAHB members with the most current and accurate information on buyer preferences so that they can deliver the home (and community) that today’s buyers want and are willing to pay for. The analysis herein shows not only what the typical buyer wants in terms of features, layout, technology, or community amenities, but also how those preferences can change (or not) based on demographic factors such as age, race/ethnicity, geographic location, income or price point.

The study was prepared in the midst of the COVID-19 pandemic, which catapulted the role of the home into a new level of prominence. In response, the group introduced new questions to measure the impact of the virus on home buyer preferences.

What Home Buyers Really Want, 2021 Edition was prepared under the direction of Robert Dietz, Ph.D., NAHB Chief Economist and Senior Vice President. The following staff participated in producing the final report:

Paul Emrath, Vice President – Survey and Housing Policy Research

Rose Quint, Assistant Vice President – Survey Research

Ashok Chaluvadi – Senior Economist

Carmel Ford – Economist

The study would not have been possible without the generous support of NAHB’s Sustainability & Green Building Department.

Results presented throughout this study come from a survey based on a consumer research panel maintained by Home Innovation Research Labs. For more information about the consumer research panel, or other market research services offered by Home Innovation Research Labs, contact Ed Hudson at [phone], ext. 6305.

Executive Summary

The 2021 Edition of What Home Buyers Really Want continues NAHB’s long commitment to home buyer preferences research. The principal objective pursued in this study is to provide NAHB members and the residential construction industry with the most current and accurate information on buyer preferences so that they can deliver the home (and community) that today’s buyers want and are willing to pay for. In this study, the analysis shows not only what the typical, average buyer wants in terms of features, layout, technology or community amenities, but also how those preferences differ based on demographic factors, such as age, race/ethnicity, geographic location, income or price point.

Few events over the last century have had as profound an impact on our economy and our society as the novel coronavirus SARS-CoV-2 (COVID-19) and related public policy responses. This latest study was prepared in the midst of the pandemic, when homes became the first line of defense for many Americans, as they sheltered in place in an effort to avoid contagion. Furthermore, homes became places of work and study to a larger degree in 2020. As a result, new questions were introduced to measure the impact of the virus crisis on home buyer preferences.

What Home Buyers Really Want, 2021 Edition is based on a comprehensive, nationwide survey of recent and prospective home buyers, carefully selected and weighted to represent the actual universe of home owners in the country, in terms of their geographic distribution, age, income and racial/ethnic composition.

The survey was conducted in two phases in the summer of 2020 using consumer panels maintained by the Home Innovation Research Labs. The first phase used screening questions to identify recent home buyers (who purchased a home in the last three years) or prospective home buyers (those expecting to buy a home in the next three years). In the second phase, a detailed questionnaire was sent to the recent and prospective buyers identified in phase one. The results reported here are based on 3,247 responses to the detailed questionnaire.

KEY FINDINGS

Prior to COVID-19, 26 percent of buyers preferred an outlying suburb location for their next home. Because of the pandemic, that share increased to 30 percent—the largest shift in preference for any location.

Minorities are driving the increased interest for suburban living, with the share of Asian, African-American, and Hispanic buyers in favor of this location rising significantly as a direct result of COVID-19.

For 67 percent of all recent and prospective buyers in the study, the pandemic has not