How to Find Today’s Version of the American Dream Home

American dream homes have taken on a new identity. They used to be defined by luxury and excess (who needed all those bathrooms?). Today’s version is practical while still meeting a few of your top priorities and accommodating your lifestyle. Real estate pros say buyers can evolve their way into a dream home by planning for thoughtful remodeling projects over time. Most important, today’s take on a dream home may be within your financial reach.

What’s the New Version of a Dream Home?

The first thing buyers want to find is a smaller home, says Rose Quint, assistant vice president for survey research at the National Association of Home Builders. Affordability and shrinking household size are helping to drive that preference. “About 20 years ago, the median size they wanted was about 2,260 square feet. Now it’s more like 2,060 square feet.” The average household size has dropped from more than three people to 2.5, she says.

With a smaller home, “something’s gotta give,” Quint adds. NAHB surveys find that “[buyers] are willing to give up space in the home office and dining room. They’re not willing to give up square footage in the kitchen and the closets.” Another change has been more buyers opting for three bedrooms instead of four and two full baths instead of three, reports the NAHB.

Buyers Have a New Attitude

Priorities have also changed. “Buyers are valuing practicality over extravagance,” says Jessica Edwards, REALTOR® and broker with The Carolinas Finest at Coldwell Banker Sea Coast Advantage in Wilmington, N.C. “There’s a shift from buyers thinking everything has to be finished perfectly and updated, to asking, Can this home evolve with my life over time?”

Buyers are choosing what some call “decision homes,” based on their financial goals, lifestyle needs and long-term plans, says Jeff Riber, founder and broker at Pursuit Real Estate in Jacksonville, Fla. “They’re solving for — or forecasting — specific needs with a home purchase.”

Riber advises searching your priority list for the one or two items most important to you and enlisting your real estate agent to help. “There’s often something that’s the real hinge point or inflection point for the decision.” It could be location, a big back yard, a certain view, space for parents or kids or distance from the neighbors, he says.

What Buyers Value

Buyers may be flexible on some points, but here are features and space they want:
Energy efficiency: Buyers value energy-efficient windows and appliances, Quint says. They want help saving money on energy costs.

• Home offices: “People want on average one home office, and wealthier home buyers want two or more, typically because both spouses work out of the house,” Quint says.
• Kitchens that are high performing: “People are looking for a kitchen that works really well — the Swiss army knife of kitchens,” says Donald Ruthroff, an architect and founding principal of Design Story Spaces in the San Francisco Bay Area. “It has to do everything in the space you have and feel like it has enough storage.”
• Location: “Overall, a dream home is an irreplaceable location,” Edwards says. “What makes a location irreplaceable depends on the person. They may be looking for walkability and access to good schools or a premium lot in a neighborhood that supports higher values.”
• Organization and storage: More than 80% of buyers want areas in their homes that will help them stay organized. Those include a laundry room, a walk-in pantry and storage in the garage, Quint says.
• Outdoor space, patios, porches: Outdoor space is a top priority, Ruthroff says. “We’re trying in almost every square footage to create some kind of covered outdoor space that extends the living space of the house outside.” Edwards says covered patio spaces are in demand in her market. “It’s not just a deck. It extends the roofline, and you have this place where you can have a fireplace, an outdoor refrigerator built in and counterspace.” NAHB studies show buyers in all climates want patios and porches.
• Primary bedroom on first floor: “It’s important if you may need it yourself but also for resale value,” Edwards says.
• Wellness spaces: We’re seeing a lot more homes that have gyms, says Edwards. “We’re not seeing a big, fancy gym. The gym space may be weights and your treadmill — sort of downscale.” The other side of wellness is infrared saunas, cold plunges and steam showers, she says.
  

How to Find a Practical, Flexible Home

In looking for a home that can evolve with your life, buyers may have a hard time seeing beyond what the current owners have done, says Ruthroff. “If you have a friend who is a design professional, take them with you. Real estate agents are a great resource and often include floor plans in listings,” he adds.

“If you’re just looking online, you’re probably majorly missing out on opportunities,” Edwards says. A reputable agent who knows the market “will be going out and seeking that property and working behind the scenes.”

Lynn Ettinger has written about real estate and business for more than two decades. Her award-winning work has been published by media outlets and organizations including “Bloomberg Tax,” “Crain’s Chicago Business,” and Deloitte.

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