Top Compromises Buyers Will Make to Reach Homeownership for 2025
Housing affordability had been brought to its lowest level in more than a decade by the effects of the pandemic resulting in high mortgage rates and double-digit home price growth. With this reality in mind, the National Association of Home Builders (NAHB) conducted a study asking homebuyers about which specific compromises they would be willing to make to achieve homeownership in the new year.
“For 39% of buyers, accepting a smaller lot is the path to affording a home,” wrote Assistant Vice President for Survey Research at NAHB Rose Quint. “This finding highlights the paramount importance of reforming zoning laws that mandate lot sizes, as nearly 4 out of 10 buyers would be willing to give up land in exchange for owning a home. For 36% of buyers, accepting fewer exterior amenities is the way to homeownership—they will simply add that deck or patio at some point in the future. Another 36% were willing to move farther from the urban core and 35% will accept a smaller house if that’s what it takes to buy it.”
According to NAHB, But what areas of the home, specifically, should shrink to reduce the overall footprint of the home? Most buyers who will take the smaller house compromise sent builders and architects a clear message: shrink the home office (53%) and the dining room (52%) to save on square footage. Also, loud and clear in the message: leave the kitchen (only 21% would want that smaller) and closet space (22%) alone.
