Single-Family Home Features That Drive Value
From design to location, a home’s value is driven by various factors. When it comes to the single-family housing market, some features contribute to a home's overall value more than others. According to a recent report from the National Association of Home Builders, homebuyers care the most about functionality and space, but some amenities also help increase a home's value.
Square footage is the strongest value driver
The size of a home is the biggest value driver, according to the report. Compared with homes under 1,000 square feet, homes between 1,000 and 2,000 square feet are valued 17% higher on average. Additionally, for homes between 2,000 and 3,000 square feet, values increase by around 30%, and for homes with 3,000 square feet or more, the value goes up by 55%.
The number of bathrooms and bedrooms also add value
Square footage is important, but how that space is used is equally as important. In particular, the number of bathrooms and bedrooms contribute significantly to a home’s value, with the report finding that each additional full bathroom can increase home value by approximately 32%. Meanwhile, each additional bedroom increases a home's value by 5%.
Which amenities add value?
Even when it comes to amenities, function seems to be top of mind for buyers. Garages and fireplaces are the most popular amenity, with both adding around 10% to a home’s value. Nationwide, centralized air conditioning also increases value by about 7%, but in warmer climates, centralized air conditioning can increase a home’s value by upwards of 48%.
Size may be the largest value driver, but well-designed floor plans can also increase profits without the added square footage
- How Thoughtful Design Can Help Small Floor Plans Live Larger: Small homes don't need to feel tight and cramped. These tips can help make even the smallest homes feel spacious.
- 4 Small Homes That Showcase Great Design: These four home feature generous, functional floor plans, despite their small stature.