Affordability is driving several preferences for home buyers, including smaller homes and townhomes.
As part of the presentation at the International Builders Show of NAHB’s What Home Buyers Really Want 2025 edition, Rose Quint shared that median home size dropped to 2,150 square feet in 2024, the lowest in 15 years. A similar trend is occurring in lots sizes, with the median lot size dropping to 8,400 square feet.
Preferences differ slightly by generation, with millennials preferring larger homes with a median size of 2,408 square feet. Baby boomers, conversely, favor smaller homes with an average size of 1,869 square feet. Gen X and Gen Z buyers are looking for homes around 2,250 square feet.
Townhomes are also rising in popularity with home buyers, comprising 17% of the single-family market in 2024. The sector accounted for just 10% of the single-family market as recently as 2009.
“Townhomes are more affordable as material, lot, and labor prices continue to increase,” said Quint, NAHB’s assistant vice president of survey research.
Builders are increasingly providing home buyers with more overall living space through porches and patios, with 68% and 64% of new homes, respectively, incorporating such features.
In addition to solutions solving for affordability, buyers also favor flexibility. Designs that account for aging in place and address different life stages are increasingly resonating with buyers. Technology features, such as security cameras, wireless security systems, and video doorbells are popular among buyers.
Other top amenities and design options include drinking water filtration, special storage racks for wine and spices, a shower stall and a tub in the primary bath, and pull-out kitchen shelves.
