Why Builders Must Pay Attention to Consumer Preference Research
The gap between what home buyers say they want and what builders actually deliver has been a persistent challenge in residential construction. Fortunately, recent consumer preference research provides clearer signals than ever before. Studies from John Burns Real Estate Consulting and the National Association of Home Builders offer actionable data on buyer expectations for home design, community amenities, and affordability thresholds.
For builders who take the time to study this data, the payoff is significant: homes that sell faster, higher customer satisfaction, and a clear competitive edge over the resale market. The key is understanding buyer wants versus needs and translating those insights into product decisions that resonate with today’s shoppers.
The Research Landscape
Two major studies anchor the current understanding of buyer preferences. John Burns Real Estate Consulting surveyed more than 21,000 new-home shoppers nationwide for its Consumer and Products Insights report, covering every demographic segment and life stage. Meanwhile, the NAHB Housing Trends Report, based on 20,051 representative samples of American adults, tracks the obstacles shoppers face and how long they persist in their search.
Together, these data sets give builders a comprehensive view of what drives purchase decisions, what buyers are willing to compromise on, and what features can make or break a sale. The findings challenge several long-held assumptions about buyer behavior and point toward specific product and community design strategies.
Key Findings on Home Design Preferences
When it comes to the home itself, buyer preferences have shifted in clear and measurable ways. The research reveals that new-home shoppers consistently rank certain design features as non-negotiable, while others that builders once considered essential turn out to be far less important.
Floor Plan Priorities
One of the most revealing findings from the John Burns study concerns the layout preferences of today’s buyers. Open floor plans remain a top priority, with shoppers explicitly favoring homes that eliminate the compartmentalized rooms common in older resale properties. First-floor master suites are another high-demand feature that new homes can offer and resales often cannot.
The research also indicates that:
- Energy-saving features are a significant differentiator between new construction and resale homes
- Buyers strongly prefer homes that maximize usable square footage over formal spaces
- Flex rooms that can serve as home offices, guest rooms, or additional living space are increasingly valued
- Kitchen openness to the main living area ranks among the top deciding factors
Affordability and Income Dynamics
The data on household income and affordability reveals a critical shift. The John Burns research found that the percentage of full-time dual-income couples drops from 82 percent before children to 54 percent once the first child is born. This has a direct impact on what buyers can afford and the mortgage loans they can qualify for.
| Life Stage | Dual-Income Households | Impact on Home Buying |
|---|---|---|
| Pre-children | 82% | Higher budget, more flexibility on monthly payment |
| First child arrives | 54% | Tighter budget, greater focus on school districts and space |
| Established families | 62% | Moderate budget, preference for functional layouts |
| Empty nesters | 48% | Downsizing, low-maintenance, first-floor living |
This lifecycle data has direct implications for how builders should size and price their homes. A community targeting young families may need smaller, more affordable floor plans than one aimed at established professionals, even though both groups may want similar design features.
What Buyers Reject in Resale Homes
A striking finding from the research is that new-home shoppers actively dislike the limitations of existing homes. The lack of first-floor master suites, closed-off floor plans, and poor energy performance are recurring complaints that drive buyers toward new construction. This gives builders a clear product positioning strategy: emphasize what a new home offers that a resale cannot.
Builders who invest in customer satisfaction surveys to track these preferences over time can refine their floor plans and feature sets with each new phase of development, staying ahead of shifting buyer expectations.
Community and Location Preferences
Beyond the four walls of the home, buyers have strong opinions about the neighborhoods and communities where they want to live. Some of the research findings in this area may surprise builders who have invested heavily in traditional amenity packages.
Commute Tolerance Is Limited
The conventional wisdom that buyers will trade commute time for more space is losing ground. The John Burns research found that only 20 percent of all home shoppers are willing to commute longer for more value. This is a significant signal for builders considering projects on the suburban fringe: location still matters, and the drive to work is a dealbreaker for most buyers.
Community Amenities: Less Is Sometimes More
Perhaps the most surprising finding concerns community and recreation centers. Almost half of all home shoppers (47 percent) said they could do without a community or rec center. This challenges the assumption that large amenity complexes are essential for attracting buyers, particularly in markets where homeowners association fees are a concern.
Features that did resonate with buyers include:
- Pocket parks and green spaces – Desired by 53 percent of respondents, small parks integrated into the neighborhood are more valued than large centralized facilities
- Walking trails and pedestrian connectivity – Buyers want neighborhoods that support an active lifestyle without requiring a car
- Proximity to daily needs – Access to grocery stores, pharmacies, and schools ranks highly across demographics
- Safe, well-lit streets – Perceived safety remains a fundamental requirement for all buyer segments
Location Trade-Offs by Buyer Segment
The research also reveals that willingness to compromise on location varies significantly by demographic. First-time buyers are more flexible on neighborhood characteristics but more price-sensitive. Move-up buyers are less willing to compromise on school districts and commute times. Empty nesters prioritize low-maintenance living and proximity to healthcare and entertainment.
Builders should consider how construction quality drives customer satisfaction across all these segments. A well-built home in a well-chosen location creates the kind of word-of-mouth reputation that sustains sales even in slower markets.
Overcoming Barriers to Homeownership
The NAHB Housing Trends Report provides crucial context on why active shoppers have not yet purchased a home after three or more months of searching. The reasons go beyond simple affordability, though that remains the dominant factor.
Why Shoppers Delay Their Purchase
Among active home shoppers surveyed, the barriers fall into several categories:
- Affordability and price – The most common barrier, but not the only one. Buyers cite high prices relative to income and savings
- Lack of suitable options – Shoppers cannot find the right combination of location, size, and features within their budget
- Credit and financing challenges – Even motivated buyers struggle with mortgage qualification in a higher-rate environment
- Inventory constraints – Insufficient choices in the desired price range and location
- Life stage transitions – Job changes, family additions, and other personal factors delay decisions
Persistence in the Market
Despite these obstacles, the NAHB data shows that nearly two-thirds of home shoppers say they will continue looking for the right home in the right place at the right price. Only 18 percent indicate they will give up entirely. This persistence is good news for builders: buyers are not abandoning the market, but they are becoming more selective.
Strategies for Builders
To convert persistent shoppers into buyers, builders should focus on three areas where the research shows the biggest gaps between buyer expectations and current offerings:
Right-size the product. The data makes clear that many buyers feel existing options do not match their needs. Builders who offer a range of floor plans at different price points, with the features buyers actually want, capture more of the market.
Communicate the new-home advantage. Buyers often do not fully appreciate how a new home outperforms a resale on energy efficiency, modern layout, and lower maintenance. Sales teams should be trained to articulate these differences clearly.
Adapt to demographic shifts. The research underscores that different buyer segments have distinct preferences. Builders who tailor their product to specific life stages rather than trying to appeal to everyone will see stronger sales velocity. It is also essential to prepare for Gen Z homebuyers, who are entering the market with different expectations around technology, sustainability, and community than previous generations.
The Bottom Line on Affordability
While affordability remains the single largest barrier, the research suggests that builders have more control over the situation than they might think. Features that differentiate new homes from resales first-floor masters, open layouts, energy efficiency do not necessarily add significant cost, but they add significant perceived value. Smart product positioning, combined with realistic pricing and financing partnerships, can close the gap between what buyers want and what they can afford.
Builders who invest in understanding their local market through the lens of this national research, and who continuously gather feedback through mechanisms like understanding buyer wants versus needs, will be best positioned to thrive in any market cycle.