Home buyers seek high-quality features even when it means less space

At 2,330 square feet in 2003, the average size of the American home may be just about at its peak, reports NAHB research economist Gopal Ahluwalia, but ceilings continue to get higher and a range of amenities that used to be limited to the upscale market are moving far up the list of what prospective buyers are looking for in a typical home.

"Quality is still increasing," Ahluwalia said. "More and more quality features are still being added," and they account for roughly 10 percent of the 40 percent increase in new home prices between 1996 and 2003.

Ahluwalia’s survey data show that the average size of a home in 2003 was close to the median 2,426 square feet that home owners said they would like to have — about one-third larger than the 1,854 square feet that is the actual size of their present home. But volume has been increasing, with nine-foot ceilings now a standard height, up from eight feet previously.

The households who were surveyed indicated enthusiasm for just about every upscale feature available, Ahluwalia said, but became more realistic in their views when they were asked to choose among alternatives.

When asked to choose between a bigger house with fewer amenities or a smaller house with high quality products and amenities, 63 percent of the homeowners surveyed by NAHB opted for the latter. To pay for those quality features, 57 percent said they preferred for them to be included in the base price of the home; while 43 percent wanted them to be offered as options at extra cost.

In parts of the country where it is impractical to build basements, three-car garages are preferred, Ahluwalia said, as a place for storage. People are asking for a larger than standard 21- by 22-foot garage.

Among several other observations on what people want in their new homes:

• The top five features home owners want in the kitchen are a walk-in pantry (84 percent), island work area (77 percent), special use storage (62 percent), built-in microwave (62 percent) and drinking water filtration (57 percent).

• Thirty-seven percent said they wanted their kitchens visually open to the family room, with a half wall; 34 percent want the two completely open.

• The top five bathroom features were a linen closet (91 percent), exhaust fan (88 percent), separate shower enclosure (78 percent), water temperature control (76 percent, a surprise) and a whirlpool tub (62 percent, even though less than 6 percent actually use this feature).

• Younger households prefer their washer and dryer to be located near the bedroom; older households prefer then near the kitchen.

• Brick was preferred by 44 percent of respondents as the front exterior wall material for their homes, which is "totally a function of the cost."

• Exhaust fans and exterior lighting were near the top of the Top 10 designs and features influencing the purchase of a home, a surprise. Laundry rooms and linen closets were at the very top of the list. Dining rooms were especially important for Asian households; 90 percent wanted them.

• Home owners participating in focus groups complained that builders aren’t putting lights in the bedroom.

• Asked to choose between more space in the master bedroom and less in the master bath or the opposite, 69 percent chose more bedroom space. "Some of the master baths have been getting bigger than the bedrooms themselves," Ahluwalia said.

• Sixty-three percent said that they would not be willing to buy a home without a living room, but Ahluwalia predicted that living rooms will vanish from the average America house in the next five years or so.

Looking at trends for the next five years, Ahluwalia predicted growing popularity for low-maintenance, natural materials; synthetic stucco; energy efficiency; and security on the outside of the home. Inside, open space, quality features, technology and special purpose rooms are on the upswing.

Open space in the entry level of the home is "really key" and there should be a free flow of traffic, he advised.

For more information on home buyer trends, visit www.nahb.org.

— Mike Kruse