By Jay McKenzie, VP/General Manager, BDX
To identify the latest trends in cutting-edge custom homes–and the wish-lists of custom home buyers—the editors of Custom Builder Magazine survey their builder readers annually.
Their latest survey offers a fascinating look at the features and amenities that custom home buyers are asking for today in their new homes.
The most commonly-sought features of custom homes include: his and hers home offices, outdoor kitchens, and stand-alone guest casitas. More rarified amenities include: personal art galleries, auto showrooms, trophy rooms — and, especially in Texas, that oh-so-necessary saddle room!
At the same time, custom builders report their clients want smaller, but still luxurious homes. Energy efficiency and green building are also very much on the minds of custom home buyers. The “Not So Big House” movement–sparked by a series of New York Times best-selling books from noted architect and author Sarah Susanka–has clearly taken root in the minds of custom home buyers and builders alike.
According to Custom Builder Magazine’s December 2010 Survey, here’s what’s on the mind of custom home buyers and builders:
CUSTOM HOMES ARE GETTING SMALLER
- Custom builders report the typical home they’re building is 3,000 to 3,500 square feet.
- If there was any doubt the era of McMansions (homes with exorbitant square footage and corresponding utility bills) is kaput, this study should confirm the trend is toward smaller, but still highly-amenitized homes
- Nearly 35% of custom builders are building somewhat smaller homes (up to 9% smaller in square footage) compared to three years ago
- Nearly 15% of builders are building significantly smaller homes (more than 10% smaller) than in the past
HOWEVER, CUSTOM HOMES REMAIN LUXURIOUS and HIGHLY-PERSONALIZED:
TOP 12 FEATURES & AMENITIES CUSTOM BUILDERS SAY HOME BUYERS ARE ASKING FOR:
- Master Suite Retreat 67.3%
- His/Hers Home Offices 47.1%
- Home Theatre 38.3%
- Outdoor Kitchen 35.9%
- In-Law Suite 26.6%
- Craft/Hobby Room 21.3%
- Bar/Pub Space 15.5%
- Guest Casita 10.8%
- Art Gallery 2.3%
- Automobile Showroom 2.0%
- Trophy Room 1.5%
- Saddle Room 1.0%
THE CHANGING FACE OF THE CUSTOM HOME BUYER: MOVING UP AND DOWN
Many members of the huge “age wave” of Baby Boom homebuyers are in their peak earning years, driving the largest segment of custom home demand from move-up buyers seeking larger, more opulent homes.
At the same time, older Boomers are starting to arrive on the threshold of retirement. Many of them are opting for smaller, move-down custom homes.
Whether moving up or down in size, both the younger and older age segments within the vast, overall Baby Boom generation are key drivers in the custom home market. Their needs and desires are reflected in the varied types of homes that custom home builders are creating:
- 79.5% of buyers are building their dream move-up home
- 31.3% want a retirement home
- 25.7% desire a vacation or weekend retreat
- 23.1% are move-down buyers, who seek a smaller, easier to care for home
“HAVING IT ALL” IN YOUR CUSTOM HOME INCREASINGLY MEANS PLANNING TO AGE IN PLACE AND ACCOMODATE ELDERLY RELATIVES AND “BOOMERANG” KIDS
- Custom builders report that a large and growing segment of their clients are buyers seeking a new home where they can age in place…while also providing living space for elderly relatives and/or boomerang kids
- The increasing preference for guest casitas and in-law suites reflects this growing trend toward multiple-generation households sharing a single home
- Burnette Builders of Austin, Texas has built three homes in the last 18 months with elevators. As Grady Burnette told Custom Builder Magazine, “The clients don’t need the elevator now, but they see it as something they’re going to need later, for themselves or some member of their family.”
HOW BIG IS THE IMPACT OF THE AGING BOOMER GENERATION ON THE CUSTOM HOME (AND OVERALL HOME) MARKET?
As the Stanford Center on Longevity notes, the number of Americans 65 years or older will double in the next 30 years. However, the youngest members of this age group will take with them their fierce individuality (this is the generation that invented rock and roll) and an inherently much “younger” attitude toward life, themselves, and their housing needs than any prior 65+ age group.
This trend will affect every aspect of American life and housing. The chart below from the Stanford Center captures what this age wave will look like: 
AMENITIES AND FEATURES VARY WIDELY DEPENDING UPON AGE, INCOME, LIFESTYLE AND NEEDS
Despite the pronounced age wave above, it’s important to note that the single largest group of custom home buyers is still comprised of consumers in their peak income-earning years, age 45-55.
These younger affluent buyers drive the move-up home market. Many are seeking the latest amenities, state of the art home theatres, elaborate outdoor kitchens, highly personalized spaces and more.
Conversely, buyers age 55-65 make up nearly a quarter of the custom home market. Many of these buyers prefer smaller, but still highly personalized and upscale homes.
Powering the wish lists of custom home buyers are demographics that include enviable household incomes and an eagerness to invest in quality homes, crafted for their needs. Builders surveyed by Custom Builder Magazine reported that:
- 37% of their custom home buyers have a household income of $250,000 or more
- Nearly 31% plan to spend $250,000 to $500,000 for their home
- Nearly 25% are budgeting $500,000 to $750,000 for their new home
- More than 19% plan to spend $1 million or more on their custom home.
ENERGY EFFICIENT AND GREEN FEATURES ARE IMPORTANT TO NEARLY 80% OF BUYERS—AND THE TYPES & MOTIVATIONS OF GREEN HOME BUYERS ARE SURPRISINGLY VARIED AND DIVERSE
Across all of these custom home price points, both move-up and move-down buyers share a common trait: a deep and growing interest in energy-efficiency and green building.
In presentations to leading Home Building Associations (HBA’s) across the country, our CEO Tim Costello describes the many faces of green building. There are many types of green buyers with surprisingly diverse motivations for “going green” in new homes.
Green buyer types include Concerned Mothers, Patriots, Conservationists, Penny Pinchers, Self Global Citizens and more. Motivations of green buyers include saving money on energy bills, building a healthier home for themselves and their family, and reducing their impact on the environment.
Regardless of the buyer type and motivation, green building and energy efficiency are clearly climbing the list of “must-have” features that more custom home buyers are incorporating into their new homes.
Not surprisingly, green and energy-efficiency are also top of mind with the best custom home builders. These building professionals are fanning the flames of buyer interest to lead the market towards better and more sustainable housing, via new homes that provide superior indoor air quality, energy and cost savings, and designs that reflect the way we live today.
Custom Builder Magazine’s Survey documents this trend: Nearly 80% of custom builders surveyed stated that energy efficient and green features are important to their clients.
CUSTOM HOME BUYERS: A SURPRISINGLY DIVERSE GROUP
- Move-up buyers seeking the homes of their dreams
- Move-down buyers seeking quality and stylish homes
- Vacation and weekend homes
- Retirement homes
- Personalized spaces for individual lifestyles
- Multiple generations under a single roof
- Home theatres, outdoor kitchens, his and hers home offices
- The many types of green buyers
Based on the trends and survey results above, one thing is clear: Today’s custom homes are limited only by the imagination and desires of homebuyers and the talents and vision of custom home builders.
To search the finest custom homes and builders in the nation, please visit www.CustomNewHomes.com.
To learn more about Builders Digital Experience (BDX) and our family of websites for consumers to select a new home, please visit www.TheBDX.com.