Buyers Favor Space, Views, Location

NEW YORK – When it comes to their ideal homes, Americans are dreaming big. The typical dream home is a new-construction, ranch-style house, spanning over 2,000 square feet and costing more than $500,000, according to a new survey by Clever Offers. It comes with scenic views of the countryside or water and plenty of outdoor space.

However, above all, Americans want a desirable location. If they can buy property in the right area or neighborhood, they'll put in the work to make their dream home a reality.

"You can always gut and renovate a home, but a bad location ruins comfort and happiness, no matter how beautiful it is," said Alexei Morgado, a Florida real estate agent and founder of Lexawise.

2025 dream homes vs. reality

About 43% of those surveyed would choose a new custom home if money were no object. Just 13% say they'd want a new, non-custom home or a fixer-upper.

"We are consistently observing a strong preference among buyers for move-in-ready homes over fixer-uppers," said Samantha Midler, a Realtor® with Austin Portfolio Real Estate in Texas. "The substantial initial cost of purchasing a property, combined with the time commitment and financial stress of a renovation, is proving to be a major deterrent."

A one-story ranch-style home is the most preferred house type, and 53% of people would want it situated on a half-acre or more. Sixty-seven percent of Americans want more than 2,000 square feet, 82% want at least three bedrooms, and 61% want three or more bathrooms.

However, dreams rarely align with reality. As of September 2025, the average home on the market is smaller at 1,840 square feet. And according to data from the National Association of Realtors® (NAR), the typical home purchased in 2024 was 1,900 square feet, built in 1994, and had three bedrooms and two bathrooms.

Lot sizes are decreasing, too, dropping to 8,400 square feet — about one-fifth of an acre. That's for new construction, not existing homes.

"In my local Ohio markets, most newer homes have 0.15-0.25 acre lots, about a quarter of what shoppers say they would like," said Itay Simchi, a real estate investor and owner of Proven House Buyers in Northeast Ohio.

It's all about location — but should it be?

More than half of those surveyed say the location or neighborhood of their dream home is the most essential factor. That's over size, space, style, or design.

In fact, 70% would rather have a less-than-ideal home in their ideal location. The countryside is the most popular choice, followed by a beach- or lakefront site. Nearly everyone (95%) wants to live in a low-crime area, and 91% want easy access to medical facilities and hospitals.

This makes perfect sense to experts like Adam Hamilton, a real estate investor and CEO of REI Hub. He sees prospective buyers prioritizing location over other factors, such as interior features.

"Many interior features and practical elements of a home can be changed," he said. "What can't be changed about a home, however, is where it's located."

It can cost an average of $52,219 to renovate a house, with the price ranging from just over $19,000 to more than $88,000, depending on the project and home square footage. Minor, cosmetic repairs, such as new paint, are much less expensive, costing about $1,100.

Morgado encourages buyers to find the ideal neighborhood first, even if they have to settle for an older bathroom or kitchen. In many ways, a home's location defines the owner's life, he said. For instance, a shorter commute means more time with family; nearby parks or shops make daily tasks easier.

"Interiors are a weekend project or a renovation loan away, but a lousy location saps your energy with long commutes or an unhappy environment, and it's much harder to resell," Morgado said.

Dream home dealbreakers

As critical as location is, it can also be a dealbreaker. Even if the home checks all the other boxes on the dream home must-have list, people will walk away if it's in a flood- or wildfire-prone area or too close to an undesirable site like a prison or chemical plant. Houses that back up to train tracks or major highways are also a no.

Similarly, buyers will avoid properties with bad neighbors or high property taxes and insurance costs. Nearly one in five won't purchase a home where a serious crime was committed. Homeowner's associations are also unpopular with people: 20% say they wouldn't buy a house in one.

While real estate investors might pay for a house with a history of damage, the need for significant repairs scares most buyers away. This can include issues like poor natural lighting, outdated electrical or plumbing fixtures, an old roof, or a deteriorating foundation.

Generationally, younger buyers have a wider range of potential dealbreakers. Gen Zers are at least three times more likely to say that a too-small lot size would be a sticking point. And millennials and Gen Z are at least twice as likely as older generations to avoid state or local politics they strongly disagree with.

What buyers' dreams mean for sellers, builders

The amenities that buyers prioritize in their dream homes can be real-world signposts for sellers who want to downsize or can't afford their houses anymore. Updated properties in good locations will likely be more desirable and sell faster.

"Buyers are seeking safe, predictable purchases; a well-maintained property that has already received a cosmetic facelift provides the peace of mind they are looking for, making them feel like they have significantly less on their plate," Midler said.

Buyer preferences also indicate that suburban and semi-rural areas will continue to see demand. These locations offer space and safety without urban premiums, Simchi added. Similarly, new single-story layouts that are both functional and energy-efficient should continue to attract potential owners.

Just over half of Americans believe their dream home will stay a dream, and they may be right if prices remain high. Affordability could keep most people in smaller, existing homes rather than new custom houses. However, it may simply take redefining what "dream home" means.

"My experience is that the 'dream home' is not a mansion; it's a house that accommodates your life," Simchi said. "For most families, that is the right neighborhood, decent size, and budget space to breathe, not perfection on paper."

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