NAR: Buyers Are Choosing Location Over Lot Size

A new survey from the National Association of REALTORS® suggests buyers are asking a different question: How do I want to live?

Nearly two-thirds of Americans say they’d pay more to live in a neighborhood where they can walk to parks, restaurants, and shops. Even more telling, 59% said they’d choose a smaller lot in a walkable community over a larger homesite that requires more driving.

That’s an important signal for builders.

As affordability pressures force buyers to make tradeoffs, value is increasingly being measured by lifestyle—not just square footage. A well-designed community with sidewalks, nearby amenities, and thoughtful planning may be more attractive than simply offering a larger home on a larger lot.

Of course, geography still matters.

Walkability is easier to deliver in infill developments than in suburban or rural markets. But the broader takeaway remains: buyers are placing greater value on convenience and community than many builders may assume.

Whether this preference begins influencing new community design, lot sizes, and product mix as builders adapt to changing buyer priorities. The builders who respond first may find themselves aligned with where buyer demand is heading—not where it has been.

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