The new housing reality.

In a recent study conducted in April/May 2025, with American Home Study and in partnership with the Housing Innovation Alliance and the University of Pittsburgh’s Mascaro Center for Sustainable Innovation, wave four of the study makes it clear that Americans are navigating a new housing reality. Financial concerns are escalating: 44% of respondents cite “economy/jobs” as their top concern (up 8% from wave three), followed by 27% who point to “housing costs/availability” (up 10%) and 23% who are worried about “higher interest/mortgage rates” (up 7%). Beyond economic anxiety, the data revealed that wellness – across financial, mental, emotional, physical, and environmental domains – continues to be the number one driver of housing decisions.

“Affordability is now the single biggest headwind for the housing industry, but that’s only part of the story,” said Teri Slavik Tsuyuki, Co-Founder of America at Home, Principal at tsk ink LLC, and Co-Chair of the Global Wellness Institute’s Wellness Communities & Real Estate Initiative. “The real crisis is that we’re building the wrong product. Homes and communities no longer match how Americans live. It’s time for the industry to reckon with that disconnect, stop recycling outdated models, and start meeting consumers where they are right now.”

While 94% of Americans still associate “home” with “safety,” the meaning of home is growing more complex. Kantar – the world’s leading market data and insights company, and a collaborator on the America at Home Study since wave two – brought the power of its MindBase® consumer attitudinal segmentation into the data, exploring post-pandemic consumer sentiment about home and community. The emotional connection to home remains strong, but Kantar’s data reveals a major demographic shift: one- and two-person households now make up a majority (64%) of U.S. households. With smaller households and hybrid work now embedded in daily life, the demands on both home and community are changing. Americans are seeking flexible, multi-use spaces that offer enhanced wellness and opportunities for connection.

As the housing industry grapples with affordability, the problem is being exacerbated by irrelevance. Traditional models of homeownership are buckling under the weight of modern realities. Consumers have altered their aspirations, behaviors, and preferences, yet the homes being built don’t reflect these changes.

41% of Americans say it’s too expensive to buy a home where they want to live
30% can’t find the right home at the right price
24% cite ongoing home operating costs like insurance and utilities as a barrier to ownership
21% say that “home” now means “financial burden” (up from 14% in wave three)
30% feel less comfortable about making housing decisions today than in 2022

Nine percent of renters say they no longer aspire to own a home, and there has also been a 3% decline in those who associate “home” with “a place I own” (77%, down from 80%). This data points to a structural crisis. Traditional ownership paths are faltering, yet consumers are open to alternatives.

“Americans aren’t giving up on the idea of home, but they’re telling us the current system isn’t working,” said Nancy Keenan, Co-Founder of the America at Home Study and President and CEO of DAHLIN Architecture | Planning | Interiors. “Housing isn’t only unaffordable at purchase – it’s also unaffordable to live in. As household compositions change and families form later or remain smaller, the homes we’re building remain unreachable for a growing majority. If the design doesn’t match the needs of the population, then instead of creating housing we’re just creating more barriers.”

Homes Are Failing the Wellness Test

Wave four confirms that wellness is the top motivator driving housing decisions. However, satisfaction with wellness across all domains is slipping. Financial wellness shows the largest delta: while 87% say it’s important, only 45% feel satisfied. This dissatisfaction also extends across mental, emotional, physical, spiritual, social, and environmental domains.

At the community level, wellness is also being redefined. For the first time, “walkability to coffee shops and casual eateries” (49%) has surpassed “trails” (48%) as a top desired feature. Health-related in-home features are gaining traction as well, with demand for whole-house water filtration systems jumping to 70% (up from 43%), and indoor air filtration now important to 69% of respondents (up from 48%). The leading motivation for respondents choosing these features was “improves my health and wellness” (60%, up from 43%).

“Wellness is no longer a perk – it’s a baseline expectation,” said Slavik-Tsuyuki. “We need homes and communities that support the whole human. Until we acknowledge wellness in all its dimensions, the delta between importance and satisfaction will continue to swell.”

Source: https://www.dahlingroup.com/media/insights/america_at_home_study_releases_wave_four_insights

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