Buyer Survey Says: Smaller Homes With More Open Spaces

Consumer preferences are examined in the latest studies conducted by the NAHB and Better Homes & Gardens.
By: John Caulfield

The trend among buyers favoring smaller homes with open and multifunctional rooms continued in 2010. But subtle changes in tastes, combined with ongoing shifts in household occupancy, could give alert builders and their product suppliers new opportunities over the next few years, as the housing market recovers and home buyers get back in the game in larger numbers.

Fresh surveys of consumer preferences, presented during a seminar on that topic at the International Builders' Show in Orlando, Fla., on Thursday morning, provided an in-depth look at what consumers are shopping for now and what they might be looking for in the future. While there were no eureka moments in the survey’s findings, they reaffirmed demographic factors that are influencing what is getting built these days and made clearer what features home buyers are seeking.

At the very least, consumers are approaching the home buying experience with a different attitude. “The sense of entitlement that people used to feel about having everything they wanted in their homes is being replaced by a sense of gratitude for things they already have,” says Jill Waage, editorial director of Better Homes & Gardens' Home Content Core.

Rose Quint, NAHB’s assistant vice president for survey research, laid the groundwork for this seminar by sharing projections about household formation and new-home construction. Projections of population growth—which is expected to rise to 322.4 million people in 2015, 336.8 million in 2020, and 422.6 million in 2050—suggest that demand for housing should remain vital. Over that time span, America’s Hispanic population will increase to 30% of the total, from 16% today; and people over 55 years old will account for 31% of the total, from 25%.

Houeseholds are getting smaller, too. One- and two-person households represented more than 63% of all households in 2010. And for the first time, married couples accounted for less than 50% of households, while unrelated adults living together increased to 6.2%.

In light of these statistics, the average size of a home completed declined last year to 2,377 square feet, from 2,438 square feet the previous year and 2,570 square feet in 2007. But Quint pointed out that the average size of a home started last year actually inched up a bit to nearly 2,400 square feet, although most of the bigger homes were started in the South and Midwest. “So this is by no means an phenomenon,” she said.

Quint shared new research in which the NAHB asked builders what they would be building in 2011. More than half, 52%, will build smaller homes, and nearly three fifths will build houses with less expensive price tags. Looking ahead to 2015, three quarters of the builders polled thought that single-family homes would continue to shrink (to around 2,152 square feet, on average); 68% thought they would be more energy efficient; but only 29% expect houses of the future to include more technology.

These builders expect that more one-story homes will be built, and more than half expect houses to combine living rooms with other rooms, with family rooms getting larger. (Thirty percent thought living rooms, per se, could vanish altogether). Among the features builders think more homes will include in the coming years are great rooms, low-E windows, double kitchen sinks, and programmable thermostats; indeed, a sizable percentage of builders expect more homes to be Energy Star rated.

However, 61% of builders polled expect the number of features offered as standard to decrease (compared to 32% who were asked the same question in 2007).

Waage followed Quint with a presentation that focused more specifically on the kinds of rooms and features buyers prefer, based on a survey, conducted last December, of 2,000 of her magazine’s readers who identified themselves as either planning to buy or remodel a home.

The survey found that buyers may have downsized as much as they’re going to, as 40% said their next home would be larger than what they live in today. Buyers are still looking for an affordable and energy efficient home with lots of storage space, but those criteria are slightly less important than they were for survey respondents in 2009.

Waage showed data that indicates buyers are taking a lot longer researching purchases and projects than they did only a few years ago. They are also prioritizing features, with efficient HVAC systems and appliances topping the list, followed by decks and patios, low-maintenance exteriors, and private backyards. They’re doing the same prioritizing for living spaces, with separate laundry, office, and storage rooms being most coveted.

However, don’t expect home buyers to overextend themselves: Better Homes’ survey found that 58.4% of readers polled are “extremely reluctant” to spend money they don’t have.

John Caulfield is senior editor for BUILDER magazine.

2011 Builders' Show Preview

12 green products from the residential construction industry’s largest event

The International Builders’ Show returns to Orlando, Fla., next week. As always, hundreds of manufacturers will be on hand showcasing new wares for the residential contractor, including an array of options for sustainably minded builders. Here’s a look at 12 green products that will be on display.

Click here for slideshow.

Baby Boomers, Gen Y, and the Recession Shift Long-Held Housing Tastes and Trends

The economy and jobs are reshaping the household picture, a ULI panel says, as Gen Yers delay buying and boomers age in place. Among all groups, walkability and transit dominate the wish list.
By:Katy Tomasulo

As the housing industry continues to claw its way out of the downturn, the recession and unemployment picture are dramatically influencing the way consumers view homeownership, according to the “Housing in America” panel during ULI’s fall conference in Washington, D.C. As the country’s two largest demographic groups—baby boomers and Generation Y—reassess priorities, household formation is down; tastes and demands are shifting toward walkable, transit-oriented communities; and the overall buyer profile within age groups is simply not as cut-and-dried as it once was.

Even as housing recovers, we’re not going to return to the same trends and tastes, says John McIlwain, senior resident fellow at ULI. “What people will want … will be substantially different.”

Among all age groups, the economy continues to be the chief driver. The jobs outlook is not only impacting sales and inventory, but also household formation, which has dropped to 25% of the norm, McIlwain reports, stemming from a decrease in immigration and the recession forcing young adults to live with their parents (or even vice versa). This trend, he says, won’t reverse until unemployment begins to drop.
Though the recession hit everyone hard, its impact on Gen Y will likely have the most long-lasting influence on housing trends. With 83 to 85 million people born from 1981 to 1999, it’s the largest demographic group the country has ever had, and therefore has massive buying potential. Problem is, they’re also the most economically constrained, McIlwain says, with a 30% unemployment rate and an average $23,000 post-college debt. They’re not saving for a down payment, and their parents, struggling to recover their own retirement savings, can’t help.

As a result, this age group’s view of the American Dream of homeownership is vastly different. “People in the youngest generation have seen the struggles family and friends are going through, and the assumption of the house as a wealth generator is very different,” says Marty Jones, president of Corcoran Jennison Cos.

Richard Koss, director of economics at Fannie Mae, found similar changes in consumer surveys conducted during the past year. In January, 70% of consumers surveyed viewed homeownership as a safe investment; by July, that percentage had dropped to 67%; in 2003, confidence was as high as 83%.

The combination of these factors, McIlwain says, will likely lead to unprecedented rental rates during the next 10 years.

GEN Y OPTIONS
To meet the challenge, developers and builders must find a way to provide products that Gen Yers can afford in locations they desire. Among their wants and needs:

Urban settings or, if suburban, walkable town centers and mixed-use communities. They desire smart growth and density, and are willing to accept a less ideal home if they can walk to work and retail.

A focus on work-life balance and connectivity.

WINKs: Woman with income, no kids. This group, typically 26 to 29 years old, is highly educated. They’re renters, but are likely to buy before marriage. Like others, they desire walkable neighborhoods near transit.

More young adults are delaying marriage; 85% of household growth will be households without kids, says Charles Hewlett, managing director of real estate advisor Robert Charles Lesser & Co.

BABY BOOMER TRENDS
Baby Boomers begin turning 65 next year. Here is how this group will continue to impact housing trends:

They’re retiring earlier than previous generations; however, many still work, either part-time, in a lower-level position, or as a consultant.

Many will age in place; however, in 10 years, we will see increased demand for seniors housing as the first wave reaches the mid and late 70s.

The earlier prediction that baby boomers will move to downtown urban areas has not happened, Hewlett says. But they are looking for what he calls “safe urbanism”—walkable, denser areas with transit.

They want locations with an affordable cost of living and quality healthcare. Both of these factors trump climate, Hewlett notes.

They look for communities with opportunities for continuing education, culture, and an active lifestyle.

They still count Florida and Arizona among the top five retirement locations, but the Carolinas, with slightly cooler temperatures and lower threat of hurricanes, are becoming their new Florida, Hewlett says.

ADDITIONAL INFLUENCERS
Among the challenges and trends across markets:

Golf course communities are out; conservation communities with passive open space and trails are in.

Walkable, transit-oriented communities or those with town squares are “going to be a key part of creating projects that attract interest,” says Jones.

Immigration will continue to be a huge housing influencer; however, where previous generations settled in urban areas, many new immigrants are heading straight for suburbs, says Hewlett.

In the rental market, green is still being driven more by investors than consumers, Jones reports.

The U.S. will grow by another 100 million people by 2040, and 60% of that will come from just 20 metro areas, primarily in the coastal areas and the south.

Finally, there’s the question of what will happen to the McMansion. In new construction, too-large houses have fallen out of favor—but what about existing homes? The vast gap in numbers from baby boom to Generation X, along with continued economic woes and shifting tastes, left one panelist to wonder who will buy baby boomers’ larger houses and what further impact those properties will have on buying trends over the next few years. Stay tuned.

Katy Tomasulo is Deputy Editor for EcoHome.

Favorite Home Shows of 2010

Those of you needing a shot of home decorating inspiration this year needed to look no further than your TV remotes. From home renovations to painting advice and cheap fixes, there were plenty of shows to inspire. The Nate Berkus Show debuted in September, and the preview of Secrets of a Stylist has everyone excited for its premiere in 2011! HGTV is the go-to channel for the majority of home decor shows, but there are several other shows that are not to be missed, including Planet Green's The Fabulous Beekman Boys.

Focus on Fire Safety: Holiday Fire Safety

Decorating homes and businesses is a long-standing tradition around the holiday season. Unfortunately, these same decorations may increase your chances of fire. Based on data from the National Fire Protection Association (NFPA) and the U.S. Fire Administration (USFA), an estimated 250 home fires involving Christmas trees and another 170 home fires involving holiday lights and other decorative lighting occur each year. Together, these fires resulted in 21 deaths and 43 injuries.

Following a few simple fire safety tips can keep electric lights, candles, and the ever popular Christmas tree from creating a tragedy. Learn how to prevent a fire and what to do in case a fire starts in your home. Make sure all exits are accessible and not blocked by decorations or trees. Help ensure that you have a fire safe holiday season.

Christmas Trees
What’s a traditional Christmas morning scene without a beautifully decorated tree? If your household includes a natural tree in its festivities, take to heart the sales person’s suggestion – “Keep the tree watered.”

Christmas trees account for hundreds of fires annually. Typically, shorts in electrical lights or open flames from candles, lighters or matches start tree fires. Well-watered trees are not a problem. A dry and neglected tree can be.

Caring for Your Tree
Do not place your tree close to a heat source, including a fireplace or heat vent. The heat will dry out the tree, causing it to be more easily ignited by heat, flame or sparks. Be careful not to drop or flick cigarette ashes near a tree. Do not put your live tree up too early or leave it up for longer than two weeks. Keep the tree stand filled with water at all times.

Disposing of Your Tree
Never put tree branches or needles in a fireplace or wood-burning stove. When the tree becomes dry, discard it promptly. The best way to dispose of your tree is by taking it to a recycling center or having it hauled away by a community pick-up service.

Holiday Lights
Maintain Your Holiday Lights
Inspect holiday lights each year for frayed wires, bare spots, gaps in the insulation, broken or cracked sockets, and excessive kinking or wear before putting them up. Use only lighting listed by an approved testing laboratory.

Do Not Overload Electrical Outlets
Do not link more than three light strands, unless the directions indicate it is safe. Connect strings of lights to an extension cord before plugging the cord into the outlet. Make sure to periodically check the wires – they should not be warm to the touch.

Do not leave holiday lights on unattended!

Holiday Decorations
Use Only Nonflammable Decorations
All decorations should be nonflammable or flame-retardant and placed away from heat vents. If you are using a metallic or artificial tree, make sure it is flame retardant.

Don't Block Exits
Ensure that trees and other holiday decorations do not block an exit way. In the event of a fire, time is of the essence. A blocked entry/exit way puts you and your family at risk.

Never Put Wrapping Paper in the Fireplace
Wrapping paper in the fireplace can result in a very large fire, throwing off dangerous sparks and embers that may result in a chimney fire.

Candle Care
Avoid Using Lit Candles
If you do use lit candles, make sure they are in stable holders and place them where they cannot be easily knocked down. Never leave the house with candles burning.

Never Put Lit Candles on a Tree
Do not go near a Christmas tree with an open flame – candles, lighters or matches.

As in every season, have working smoke alarms installed on every level of your home, test them monthly and keep them clean and equipped with fresh batteries at all times. Know when and how to call for help. And remember to practice your home escape plan!

After the holidays, don’t throw your natural tree away! Here are some tips on what to do with your tree after the holidays. In general, you have these options:

Curbside pick-up for recycling - Most areas will collect trees during their regular pickup schedules on the 2 weeks following Christmas. There are often requirements for size, removing ornaments, flocking, etc; see below for details.
Call for an appointment to have a non-profit in your area pickup your tree. Some boy scout troops are offering a pickup service for a small donation (often $5).
Take your tree to a drop off recycling center. Most counties have free drop-off locations throughout the county. Usually, you may take up to two trees to any of the following drop-off locations at no charge.
Cut the tree to fit loosely into your yard waste container.

What’s Cooking in Appliances

What’s Cooking in Appliances
Remodeling clients look to appliances to make life easier with a wider range of options and efficiency
By Jon Minnick from Qualified Remodeler Magazine


Remodeling clients are spending less on projects these days and, when it comes to appliances, they’re spending more time researching their options. They want appliances that will perform flawlessly, look great, make cooking and cleaning easier, be efficient — and not cost a lot of money.

“One of the key trends that you see across the board is consumers looking for energy and water efficiency,” says Carlos Johnson, senior brand manager for Amana. “Consumers want to feel like they’re being greener and are effectively managing their appliances. There is more demand for Energy Star and green certified appliances, and going forward it will get even stronger.”

GE Appliances has addressed this trend as well. “To give you an idea of how efficient our products have become,” says Steve Anderson, contract marketing and specialty manager of GE Appliances, “one of our 16-cu.-ft. refrigerators will use fewer kilowatts than an 80-watt light bulb. That’s how far we’ve come.” About 18 months ago, GE began testing demand response appliances that reduce electrical consumption during periods of peak energy consumption.

Technology and Features

Technology goes beyond efficiency, however. “Appliances are all about technology to make tentative cooks better cooks,” says Ellen Cheever, CMKBD, ASID, CAPS, Ellen Cheever and Associates, Wilmington, Del. “I think that 10 years ago you had consumers who thought a commercial high-BTU gas range would make them a better cook. Today, I think they are saying, ‘How can you make it easy for me to be a good cook?’

“Jenn-Air’s oven, for example, is specifically designed to help a tentative cook select the right pan and the right temperature. The concept is to make the controlling mechanism easy to operate and fail safe,” she says.

Remodeling clients are asking for real innovations that make cooking and cleaning easier. In the professional-grade appliance category, it’s not just about making a statement or having the most powerful range in the kitchen. What’s important to consumers are real cooking innovations such as Thermador’s Sensor Dome, ExtraLow Simmer and patented Star Burner, a star-shaped design that allows for greater heat coverage and a smaller cold spot than a conventional round burner.

“The result is 18,000 Btu on every burner, more even heat across any sized pan and faster time to boil,” says Zach Elkin, director of the luxury division, Thermador Home Appliances for BSH Home Appliances, Corp. “Also, the new Star Burner design coupled with the porcelain Quick Clean Base allows for easy access and cleanup.”

“There are a lot of gimmicks on appliances, but consumers are not interested in features with no real payoff. They want features they can use,” says Scott Davies, marketing manager for Fisher & Paykel Appliances.

“Ergonomics and efficiency are features that have a real payoff ,” adds Davies “Cycles on a clothes washer, like an allergy cycle, or a tall dish drawer which fits large 13-in. platters, aren’t just novelties; they provide a real and usable benefit,” he says.

GE Appliances has also introduced innovative features. On some of the higher-end refrigeration models, a bottom drawer can be temperature adjusted to cool down wine or beer quickly. The same drawer can be used to defrost meat over the course of a day while maintaining it at a safe temperature.

There is also GE’s Advantium Speedcook oven, available in above-the-range and wall units. The 240-volt version can cook up to eight times faster than conventional oven and still maintain oven-quality results.

In the washing area, GE’s SmartDispense dishwasher only has to be filled with detergent once every three moths. The dishwasher will determine the amount of detergent needed based on the soil level in the water and the hardness of the water. There is a similar product in GE’s laundry line where a six-month supply of detergent and softener can be stored in the washing machine to be dispensed during the wash cycle.

Appearance and Style

Another trend that is hitting appliances is color. The sea of white appliances is starting to fade. Black and stainless steel appliances are growing in popularity, particularly on the high-end side.

Whirlpool has gone beyond this and is bringing color into the kitchen and laundry area.

“In the laundry room color is taking over,” agrees Carlos Johnson of Amana. “There are now a lot of greens, reds and other interesting colors that consumers are asking for.

“In the kitchen, Amana also has been experimenting with colors in top-mount refrigerators. Right now we offer red, silver and midnight blue with a bit of a speckle, and this spring we’re launching a green tea color that has an almost metallic finish with a leafy pattern on it. We’re finding more consumers want to express their personality with non-traditional colors,” Johnson says.

Although stainless steel remains the top alternative pick to traditional white appliances, more and more manufacturers are offering different design options in finishes, especially on higher-end products. For example, Dacor offers floating glass options in Anthracite Gray, Sterling Gray, Titanium Silver, Blue Water, Slate Green and black. Similarly, Jenn-Air offers two different stainless steel lines — Euro Stainless and Pro-Style — in addition to an oiled bronze finish and black and white floating glass options.

Flexibility and Placement

Both GE and Jenn-Air spokespersons indicate that there is growing interest in products that offer flexibility of placement. This includes beverage centers, warming drawers, dishwasher drawers and drawers for refrigeration and freezing. This creates greater design element ideas and offers multiple placement options to better suit usage patterns.

“Consumers are feeling less tied to traditional notions of kitchen design,” says Juliet Johnson, Jenn-Air manager of brand experience. “For example, those who entertain frequently are increasingly opting for two dishwashers or two cooktops or placing beverage centers and drawer dishwashers in entertainment areas outside the kitchen.”

Looking Forward

Demanding remodeling clients will continue to expect more from their appliances — more performance, more innovation, more style and greater value. At the same time, manufacturers will continue to design appliances for those that are passionate about cooking and entertaining at home.

Use the E-Inquiry Form for more information on the following appliance suppliers:

Amana Type #11 in E-Inquiry Form

Dacor Type #12 in E-Inquiry Form

Fisher & Paykel Type #13 in E-Inquiry Form

GE Appliances Type #14 in E-Inquiry Form

Jenn-Air Type #15 in E-Inquiry Form

Thermador Type #16 in E-Inquiry Form

Whirlpool Type #17 in E-Inquiry Form

Helping Customers Choose

The first thing to ask a homeowner when thinking about a new appliance purchase is how they use the product. How do they use the appliances they have today? Do they do lots of cooking and like to cook large dishes? If so, they might want to look at an appliance with a convection oven or dual elements. Do they cook small meals, trying to get it done as quickly as possible and it’s not about the experience? Then a different appliance might be better for them. Next they should think about how important styling is to them. Do they want to make a bold statement or do they want something more subtle that fades into the kitchen or laundry room? Then, based on those two things they should begin looking around in the marketplace, do research on what is available, and find what meets their needs.

“I think one of the first things to do to qualify the consumer is to ask whether they are interested in a free-standing product or a built-in product,” explains GE’s Anderson. “Then, you want to find out how big their family is and their interests in cooking. Whether they cook occasionally, or they do a lot of cooking. How much entertaining do they do? Then, we have to find out what they’re CTQs are, which stands for Critical to Quality interests. Whether it’s efficiency, design, a specific feature, how many children they have in the family — all those things would determine what sort of feature pack or brand we would work with them on.”

As a remodeler, the biggest thing to consider is cutout size of the appliance. Some companies try to maintain the same or similar cutout size to their appliances in order to make replacing them someday as easy as dropping in the new appliance. As innovation continues, though, it’s safe to say that there could be some variation on a product’s depth, width or height, especially if changing brands, and this should be looked at closely before a product is purchased.

2010 EchoHome Design Awards

Grand Award - Hillside House
- From EchoHome Magazine

Nestled on an ultra-steep infill lot near downtown Mill Valley, Calif., the Hillside House was designed to work in concert with the parcel’s topography, as vertically connected spaces interplay with an abundance of covered porches, decks, and balconies to form a dwelling that is as in tune with nature as it is tied into it.
Telescoping doors provide seamless transitions from indoors to outdoors, which the judges praised for making the house seem larger than its 2,116 square feet suggests. Even the master bathroom makes use of the surrounding trees and view: A glass wall separates the indoor shower from an outdoor bathtub, transforming an “intimately scaled bedroom and bathroom into a majestic space,” says project designer SB Architects.

With nearly 20% below grade, the LEED-Platinum home reaps the ground’s natural insulative benefits, while the integration with the exterior allows for abundant daylight and natural ventilation; the layout also provides optimal positioning for the roof- and trellis-mounted 3.75-kW solar arrays. Spray-foam insulation, energy-efficient appliances, water-conserving fixtures, FSC-certified lumber, and zero-VOC paints are just a few of the home’s numerous resource-conserving features.
Wood siding and beams combine with metal accents and purposeful symmetry to lend a rustic yet sophisticated feel to this “modern cabin,” as it is described by architect and homeowner Scott Lee, AIA, while locally crafted and sourced elements, including recycled-content ceramic tiles and custom benches made from fallen tree trunks, support Lee’s desire to highlight sustainability as well as the town’s artistic roots. Interior designer Erin Martin repurposed chalked-up, discarded scaffolding boards into one-of-a-kind stairwell walls and transformed buoys from Washington’s Puget Sound into vibrant pendant lights.
“It’s comfortable and familiar because of the palette of materials,” says Lee, “but it appeals to our sense as designers because [of its] modern elements.”

Project Details
Hillside House, Mill Valley, Calif. | Size: 2,116 square feet | Cost: Withheld | Completed: January 2010 | Certification: LEED-Platinum | Architect: SB Architects, San Francisco | Builder: MCD Construction & Development, Oakland, Calif. | Verifier: Davis Energy Group, Davis, Calif.

Green Highlights
Energy: Bay Systems spray-foam insulation / solar hot water / radiant floor heating / Colorado VNet home automation system / Lutron automatic shading system / Luminas LED Lighting / Whirlpool and Jenn-Air Energy Star appliances / Solar City 3.75-kW PV system | Resources: 63% construction waste diversion / 30% fly ash foundation / FSC-certified New World Millworks cabinetry / Restoration Timber recycled timber / Heath recycled-content ceramic tile / Concreteworks recycled concrete-and-glass countertops | IAQ: Zero-VOC Mythic paint / Fantech and HVACQuick ventilation systems | Water: drip irrigation / drought-tolerant landscaping / Kohler WaterSense faucets