Remember back when the Great Recession was in full swing, and trend trackers were noting the shrinking square footage of American homes and predicting that home buyers would continue to prefer smaller, more efficient houses for years to come? Well, apparently consumers are weary of the past two years of downsizing, according to the Better Homes and Gardens (BHG) 2011 Consumer Preferences Survey.
The economy seems less dire and consumers, perhaps suffering fatigue from all the recessionary survival measures they’ve taken, are beginning to let themselves think ahead to better days. There was a slight upsizing of new homes that began in 2009 and continued through 2010, according to the NAHB, and consumers surveyed by BHG indicated their ideal median home size in 2010 was 1,914 square feet, up from 1,864 in 2009. Among these home buyers, 40 percent say they want their next home to be larger than their current home—a 4 percent increase from 2009—and 6 percent fewer home buyers than in 2009 said they want their next home to be smaller.
Home affordability and energy efficiency are still top of mind, the survey found, although the number of consumers citing these qualities most important for their next home declined slightly from 2009. In 2010, consumers reported that affordable price (74 percent, down from 80 percent in 2009), energy-efficient heating and cooling systems (68 percent, down from 76 percent in 2009), Energy Star appliances (63 percent, down from 70 percent), a no-space wasted design (59 percent, down from 66 percent), and ample storage (52 percent, down from 62 percent) were the highest priorities for their next home.
According to BHG’s survey, the top-ranking features that consumers want in their next home include:
High-efficiency heating and cooling systems (89 percent)
High-efficiency appliances (85 percent)
Deck or patio (84 percent)
Low-maintenance exteriors (79 percent) Although square footages may be slowly creeping upward again, consumers are still prioritizing living spaces. For their next homes, the survey found consumers most want:
Separate laundry room (81 percent)
Additional storage space, such as walk-in closets or built-ins (79 percent)
Home office, workspace, or family computing center (67 percent)
Outdoor grilling or living area (67 percent)
At least one additional bedroom with an ensuite bathroom (65 percent)
Everyday eating space in or near the kitchen (64 percent) While consumers are feeling more optimistic about the economy and are starting to plan home improvements or their next home purchase, they are still operating on a value mentality. That is, they still want to get the most bang for their buck and are still cautious about spending. BHG’s survey indicates that a majority of consumers think it is important to get the most value for every dollar spent (54.6 percent) and that they will spend time looking for bargains and deals to save money (51.7 percent). Many are no longer willing to borrow money for home improvements or purchases that represent a good deal (45.7 percent) and many more (58.4 percent) say they are extremely reluctant to spend money they don’t have.
Those who think now is the right time to spend on home improvements (25 percent) are doing more advance planning on projects than in the past. In the housing boom years, consumers first committed to a project, then researched it. Now, rather than planning as a project advances through its stages as was once the tendency, consumers are taking more time to research and make informed decisions up front and then committing. Their planning and decision making then speeds up in the later stages, according to BHG.
In light of the recent economic troubles, consumers’ more careful planning shouldn’t be surprising and may even make the decision-making process more streamlined and less troublesome for builders and remodelers.
