As home sizes shrink and a new mega-generation ages into the homebuying market, homebuilders may have to rethink certain aspects of home design.
With affordability the main issue for buyers, builders are now working to maximize space with functional design over flash. Buyers are still largely driven by emotion, but they are also constrained by affordability, so cost-effective design features that add a hybrid clean-simple-functional flair and make the most out of small spaces go a long way.
According to a survey from John Burns Research and Consulting, construction quality was the third-highest factor that buyers prioritize when purchasing a home, ranking behind only price and location.
Design and style rank sixth most important, lower among buyer priorities than maintenance needs and energy efficiency.
A key theme of the survey was realignment, Jenni Nichols, Vice President of Design at John Burns Research and Consulting, told The Builder’s Daily.
“We’re seeing this kind of stepping back and rethinking, ‘What should we be including in homes? What do consumers want? How have they changed?’ Part of that also is rethinking some of those tried and true things that we’ve done forever,” Nichols said.
Home design is clearly shifting toward smaller homes that maximize space through practical layouts, multifunctional rooms and built-in storage. At the same time, builders are also emphasizing thoughtful, cost-effective details and warmer color palettes that make living spaces feel more comfortable and inviting.
Maximizing space
Data from the National Association of Home Builders indicates that the average new home was about 2,155 square feet in 2025, down from roughly 2,465 square feet in 2015. As a result, buyers, especially in the entry-level and more affordable segments, want to maximize space and prioritize practicality and functionality above aesthetic panache.
Nichols said that there are strategic things that buildings can do to make a home feel bigger, such as thoughtfully-located windows and higher ceilings.
Homebuyers, especially entry-level buyers, are focusing on the basics, including a functional kitchen.
”When you ask them the top priorities for a kitchen, it’s shifted to enough counter space and enough storage to get the kitchen just right. It has really shifted to just some basic fundamentals of, ‘I want enough space to do my prep for food, and I want enough space to store everything.’ That’s a good example of the shift we’re seeing,” Nichols said.
As another example, many buyers now prefer a small “pocket office” over a larger dedicated office, so they can allocate more square footage to common areas like the great room while keeping workspaces simple and efficient.
Mudrooms and drop zones are also more commonplace now, Nichols said, as buyers increasingly want a dedicated place to store shoes, coats and everyday items at the entrance of their home.
Michael Phillips, VP of Architecture at Dream Finders Homes,, provided an example of a practical, cost-effective way his team maximizes space during a session at the International Builders’ Show (IBS) in February.
“We started a trend where we would convert under-stair space into a little nook for pets, and it’s something that does not cost us a lot of money. But it carries a lot of value in the eyes of customers,” Phillips explained.
Human-centric, artistic design
During the same session at IBS, Carrie Firmine, VP of Business Development at TRIO, which designs homes and floor planson behalf of homebuilders, argued that buyers want a “human-centric” floor plan.
“Even if you’re not cooking as much, you still want that kitchen. It’s still your focal point. Everyone wants to stand around the island, but people also want integrated breakfast nooks. They want window seats. They want all these little memory-making spaces that create this kind of cozy, peaceful, tranquil home,” she said.
A human-centric design also focuses on design elements like thoughtful lighting, ample natural light and smooth transitions between spaces in the home. One example of such a transition is using curtains around a dining area to create a more cozy, private space while still maintaining an open floor plan.
Other features can have a big impact. These can range from minor design elements, such as using mirrors to reflect natural light or creatively using partitions or pocket offices to maximize functionality at a relatively low cost. Small elements such as built-in sun shelving or simple trim details amount to economical ways to add extra functionality and personalization.
Even though buyers are prioritizing functionality over design features, adding low-cost artistic elements can be a great way to evoke emotion in buyers. For example, upgrading baseboards and trim profiles, or backsplashes in kitchens, can serve as low-cost upgrades that elicit an emotional response. An open stairwell with metal railings is another visually appealing design that is also relatively affordable.
Color schemes
Five years ago, home designs were dominated by stark white and high contrast, but now people prefer warmer spaces with muted, softer palettes of color. For example, buyers generally prefer more muted colors like navy or rust brown over brighter colors, Firmine said.
In an interview with The Builder’s Daily, Sherri Drew, VP of Design Studios at Tri Pointe Homes, added some of her insights. According to Drew, light to medium wood stains and new warm-toned tiles and quartz countertops exemplify a quick shift toward warmer, relatable colors. As a result, finishes that are very popular may be losing some of their popularity.
“We’re going away from all the whites and grays, the cooler colors, and even the warmer grays, and back to stain cabinets, finished wood floors and warmer colors. We just met with some of our suppliers, picking out warmer countertop colors. Everything’s kind of going back to almost like the travertine days of warmer tones, to the point where we might find in the next year or so that even our white cabinets, which have always been our biggest seller, are not going to be our biggest seller anymore,” she said.
What different generations are looking for
According to data from the National Association of Realtors, Baby Boomers, born between 1946 and 1964, make up about 40% of homebuyers. Baby boomers, the generation with the most disposable 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 accommodate their lifestyle, whether it’s personal or professional, is becoming increasingly important,” Phillips said.
Generation X, born between 1965 and 1980, makes up about 24% of homebuyers. They typically want homes between 2,000 and 4,000 square feet, as many of them have kids and many others have older parents living at home.
“This idea of generational living is important, but I think the way that it is expressed in the home is equally as important,” Phillips said, arguing that ensuite bedrooms on the first floor are a popular design feature for multigenerational households.
Millennials, born between 1981 and 1996, account for nearly 30% of buyers and typically look for homes between 1,500 and 2,500 square feet. A lot of them care a lot about location, and are willing to sacrifice on square footage for a prime location.
“They want functional spaces with a bit of style that remain affordable. So in many kitchens you can replace some upper cabinets with glass to make the space feel larger, while also designing everything to support multitasking and integrated technology,” Phillips said.
Generation Z, born between 1997 and 2012, only makes up 3% of buyers, and the Silent Generation, born between 1928 and 1945, accounts for only 4%.
Cultivating a comfortable customer experience
The design studio is a big part of Tri Pointe Homes’ business. The builder is a leader in price transparency for new construction via its online design studio feature, which allows buyers to select design options and receive a transparent price estimate before going to a design studio in person.
The builder’s sales team, Drew said, works hard to ensure that customers feel comfortable and heard during the design studio process.
The sales team works closely with the internal Tri Pointe mortgage team to understand customers’ budgets and mortgage capacity. Understanding the buyer’s lifestyle and family situation is also crucial in guiding the design studio process.
Even though the sales team knows each buyer’s estimated budget, they don’t talk about that number directly with the customer, since buyers don’t want to be pressured to maximize their spending.
Sales representatives instead leverage that estimate to guide the design studio process and keep the selections within budget. The goal is to create a supportive experience that feels more like a partnership, as opposed to making customers feel like they’re being sold to or pressured to spend 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.