As home sizes shrink and a new generation ages in the home buying market, home builders may need to rethink certain aspects of home design.
With affordability a major concern for consumers, manufacturers are now working to maximize space with an efficient design over flash. Consumers are still very much driven by emotion, but they are also constrained by affordability, so inexpensive design elements that add a hybrid clean-simple-functional flair and make the best of small spaces go a long way.
According to a survey from John Burns Research and Consultingbuild quality was the third-highest factor buyers prioritized when buying a home, ranking behind only price and location.
Design and style ranked sixth most important, lower among consumer priorities than maintenance requirements and energy efficiency.
A key theme of the study was restructuring, Jenni Nichols, Vice President of Design at John Burns Research and Consulting, said. Builder’s Day.
“We’re seeing this kind of backlash and rethinking, ‘What should we put in homes? What do consumers want, how have they changed?’ “Part of it is rethinking some of the tried and true things we’ve done forever,” said Nichols.
Home design is shifting to smaller homes that maximize space with functional architecture, multi-functional rooms and built-in storage. At the same time, architects also emphasize thoughtful, cost-effective details and warm color palettes that make living spaces feel comfortable and inviting.
To increase the space
Data from National Association of Home Builders shows that the average new home was about 2,155 square feet in 2025, down from about 2,465 square feet in 2015. As a result, buyers, especially in the entry-level and affordable segments, want to maximize space and prioritize functionality and functionality over aesthetic panache.
Nichols said there are strategic things architects can do to make a home feel bigger, such as thoughtfully placed windows and high ceilings.
Home buyers, especially entry-level buyers, focus on the basics, including a functional kitchen.
“If you ask them the top priorities for a kitchen, it’s changed to enough counter space and enough storage to set up the kitchen properly. It’s really changed to some basics of, ‘I want enough space to do my food prep, and I want enough space to store everything.’ That’s a good example of the change we’re seeing,” said Nichols.
As another example, many consumers now prefer a small “pocket office” to a large dedicated office, so they can allocate more square footage to common areas like the great room while keeping workspaces simple and efficient.
Mudrooms and walk-in closets are also commonplace now, Nichols says, as buyers increasingly want a dedicated place to store shoes, coats, and everyday items at their doorstep.
Michael Phillips, VP of Architecture at Dream Finders Homes,, gave an example of an efficient, cost-effective way his team is adding space during a session at the International Builders’ Show (IBS) in February.
“We started a practice where we changed the area under the stairs into a small area for pets, and something that doesn’t cost us a lot of money. But it has a lot of value in the eyes of the customers,” explained Phillips.
Human-centered, creative design
At the same time at IBS, Carrie Firmine, VP of Business Development at The TRIOdesigning homes and floor plans on behalf of home builders, argued that buyers wanted a “human-centered” floor plan.
“Even if you don’t cook much, you still want that kitchen. It’s still your focal point. Everyone wants to stand at the island, but people want integrated breakfast nooks. They want window seats. They want all these little places that make memories that create this kind of cozy, quiet, peaceful home,” she said.
Human-centered design also focuses on design elements such as thoughtful lighting, adequate natural light and smooth transitions between home spaces. One example of such a transformation is using curtains around the dining area to create a cozy, private space while maintaining an open floor plan.
Other factors can have a significant impact. This can range from small design elements, such as using mirrors to reflect natural light or creatively using partitions or pocket offices to maximize functionality at low cost. Small things like built-in sunshades or simple trim details add up to cost-effective ways to add more functionality and personalization.
Even if consumers prioritize functionality over design features, adding inexpensive artistic elements can be a great way to evoke emotions in consumers. For example, upgrading baseboards and cutting profiles, or backsplashes in kitchens, can serve as inexpensive improvements that bring emotional reactions. An open staircase with metal railings is another design that is visually appealing and affordable.
Color schemes
Five years ago, home designs were dominated by stark white and high contrast, but now people are opting for warmer spaces with muted, soft color palettes. For example, buyers often prefer muted colors like navy or rust brown to bold colors, Firmine says.
In interview no Builder’s DaySherri Drew, VP of Design Studios at Homes in Tri Pointehe added some of his ideas. According to Drew, light to medium wood stains and new warm-toned tile and quartz countertops exemplify a quick shift to warm, relatable colors. As a result, the most popular finishes may lose their popularity.
“We’re going away from all whites and grays, cool colors, even warm grays, and we’re going back to dirty cabinets, wood finishes and warm colors. We’ve just met with some of our suppliers, we’re choosing warm countertop colors. It’s all like going back almost like the travertine days of warm tones, to the point where we might get our biggest cabinet, which is always white next year, which is always white. It won’t be anymore our biggest seller,” he said.
What different generations want
According to data from National Association of RealtorsBaby Boomers, born between 1946 and 1964, make up about 40 percent of homebuyers. Baby boomers, the generation with the most income and built-up equity, typically want homes between 1,500 and 2,500 square feet.
“They have children living with them sometimes, and sometimes they even have very elderly parents living with them.” So the idea of having more space to deal with their lifestyle, whether it’s personal or professional, is becoming more and more important,” said Phillips.
Generation X, born between 1965 and 1980, makes up about 24 percent of homebuyers. They usually look for homes between 2,000 and 4,000 square meters, as many of them have children and many others have elderly parents living at home.
“This idea of intergenerational living is important, but I think how it’s presented in the home is just as important,” says Phillips, arguing that first-floor ensuite bedrooms are a popular design feature for multigenerational families.
Millennials, born between 1981 and 1996, account for 30% of buyers and typically look for homes between 1,500 and 2,500 square feet. Many of them care a lot about space, and are willing to sacrifice square footage for prime space.
“They want functional spaces in a minimalist style that is still affordable. So in many kitchens you can replace some upper cabinets with glass to make the space feel bigger, while also designing everything to support different technologies and integrated technologies,” said Phillips.
Generation Z, born between 1997 and 2012, makes up only 3% of consumers, while the Silent Generation, born between 1928 and 1945, makes up only 4%.
Cultivating a comfortable customer experience
The design studio is a major part of the Tri Pointe Homes business. The architect is a leader in new construction pricing transparency with its online design feature, which allows buyers to select design options and get a transparent price estimate before visiting the design studio in person.
The builder’s sales team, Drew said, works hard to ensure customers feel comfortable and heard during the design studio process.
The sales team works closely with Tri Pointe’s internal mortgage team to understand customer budgets and loan strengths. Understanding the consumer’s lifestyle and family situation is also important in guiding the design studio process.
Even if the sales team knows each buyer’s estimated budget, they don’t talk about that number directly with the customer, as buyers don’t want to be pressured into spending more.
Sales representatives instead use that measure to guide the studio’s design process and keep selections within budget. The goal is to create a supportive experience that feels like a partnership, instead of making customers feel like they’re being sold to or pressured into spending more.
“We talk a lot about the benefits and features of the products. So, why would you want this at home? What is the benefit? What are the features and benefits of that product? And why would you want to have it in your home instead of this?” Drew explained.
