New Research Shows What Buyers and Renters Are Willing to Pay More For
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For nearly half of Americans, home is more than just a place to live—it’s a sanctuary, a workspace, and an investment in their future.
According to new research from Fannie Mae, 44% of consumers say their home has grown more important in recent years, compared to just 10% who say it has become less important. And it’s not just about finances—security, location, and lifestyle upgrades are now major driving forces behind homeownership demand.
This shift in consumer sentiment is reshaping the market, influencing buying decisions, and pushing inventory pressures even further.
Here’s what the latest research reveals about why homes have taken on new importance—and what it means for real estate agents and homebuyers moving forward.
Why Home Matters More Than Ever
With housing affordability at historic lows, many homeowners recognize they couldn’t afford their current home in today’s market—making them value what they already have even more.
The top reasons why consumers value their homes more:
- Location remains king – 63% of consumers say their home’s location has made it more valuable to them, with homeowners (69%) feeling this more than renters (50%).
- Security matters more than ever – 59% cite the sense of security their home provides as a key reason for its growing importance.
- Lifestyle perks outweigh financial benefits – When asked why their home has grown more important, 67% cited lifestyle reasons like customization, security, and outdoor space—compared to just 34% who pointed to financial benefits.
Notably, homeowners (48%) are more likely than renters (38%) to say their home has become more important.
And while lifestyle benefits still outweigh financial ones, the gap is narrowing; compared to 2015, more consumers today cite financial benefits as the best reason to buy a home.
Affordability pressures are still a factor, with the ability to pay rent or a mortgage critical to consumer perception of home value—especially among homeowners (60%) and renters (47%).
How Consumers Are Using Their Homes Differently
More than half of consumers have adapted their homes to fit their changing needs. Here’s how they’re making their spaces work harder:
- Work-from-home setups – 25% have made upgrades to accommodate remote work.
- Home gyms & hobbies – 19% now use their home for fitness or personal projects.
- Gardening & sustainability – 18% are growing their own food or creating sustainable outdoor spaces.
For 44% of these homeowners, these changes have led to additional savings—whether by cutting commuting costs, canceling gym memberships, or monetizing home office space.
These shifts are particularly common among younger and higher-income consumers. Additionally, nearly half (48%) say they now place more value on functional home features like large backyards and flex spaces that can serve multiple purposes.
For real estate agents, this means buyers are looking for homes with more versatility—space that can be used for work, exercise, or hobbies—is a growing priority.
Changing Needs Are Driving Homebuying Decisions
As people rethink what they want from a home, certain features are in higher demand:
- Outdoor living space (69%)
- An extra room for hobbies (61%)
- A yard for gardening (60%)
Renters, in particular, are willing to pay more for these upgrades, which could drive some to make the jump to homeownership or single-family rentals.
Multigenerational living is also becoming a bigger factor—46% of renters and 42% of homeowners say they would pay more for a home with enough space to accommodate extended family. This growing trend could reshape how agents position listings and guide buyers through home selections.
What This Means for Real Estate Agents
Fannie Mae’s research confirms what many agents have seen firsthand: buyers aren’t just thinking about square footage and price anymore. They want homes that fit their lifestyle, security, and long-term needs.
Here’s how you can apply these insights:
- Highlight lifestyle benefits – Buyers are prioritizing security, location, and flexible space. Make sure your listings speak to these needs.
- Emphasize home adaptability – Whether it’s a spare bedroom that can double as an office or a backyard ready for transformation, show how homes can flex with evolving needs.
- Understand multigenerational needs – More buyers are looking for homes that can accommodate extended family, so be ready to showcase flexible layouts.
- Position homeownership as a long-term investment – With financial benefits growing in importance, help buyers see the value in locking in homeownership now rather than waiting.
The bottom line? Consumers are placing more value on their homes than ever before—and understanding these motivations can help you position yourself as the go-to expert in your market.
Key Details:
- New research from Fannie Mae shows that 44% of consumers say their home has become more important in recent years, with 63% citing location and 59% valuing the security it provides.
- More than 50% have made functional changes, including 25% adapting for remote work, 19% using their home for fitness, and 18% growing food.
- When considering future home purchases, 69% want outdoor living space, 61% want an extra hobby room, and 60% prioritize a yard for gardening.
Posted by Sarah Lentz | Mar 17, 2025 | Housing Market
https://nowbam.com/new-research-shows-what-buyers-and-renters-are-willing-to-pay-more-for/
@ChuckBarberini – #ChuckBarberiniRealEstate – @ChuckBarberiniRealEstate