Rising home prices continue to shape buyer behavior, and according to the latest America at Home Study, home buyers in 2025 are more willing than ever to make trade-offs to get into a home that fits their lifestyle. As a Realtor working in the Denver Metro Area, I can say this study reflects exactly what I’m seeing in our local market.
The Top Trade-Offs Buyers Say They’re Willing to Make
The national study surveyed nearly 16,000 people and revealed that buyers in 2025 are increasingly open to:
- Smaller homes — 40% said they’re willing to downsize (up from just 21% in 2022)
- Smaller or no garage — 33% are fine with less garage space (up from 22%)
- Smaller room sizes — 25% are comfortable with cozier rooms (up from 16%)
- Alternative ownership models — 50% would consider rent-to-own, and 32% are open to modular or manufactured homes
With 64% of buyers made up of one- or two-person households, it makes sense that layout and flexibility are taking priority over square footage.
How This Shows Up in the Denver Metro Area
Across the Denver Metro Area, I’m seeing this shift firsthand. Buyers tell me they’d rather have a home with a flexible loft, finished basement, or bonus space than an extra 300 square feet they won’t actually use. Lifestyle is winning over size.
One of my buyers recently chose a slightly smaller home in a neighborhood they loved because it had a bright loft space that now serves as a home office, reading nook, and occasional yoga area. They told me, “This space makes the whole house feel bigger.”
For Buyers: Focus on Layout, Not Just Square Footage
If you’re starting your home search, don’t rule out homes just because they’re smaller than what you originally pictured. A well-designed floor plan with multi-use rooms can live larger than a home with more square footage but poor flow.
Look for:
- Lofts that double as offices or hobby spaces
- Dining rooms that could function as an office
- Finished basements that can flex between playroom, gym, or guest space
For Sellers: Highlight Versatile Spaces in Your Home
If you’re selling, you have an opportunity. Today’s buyers want to see possibility, not just rooms. A formal dining room staged as a hybrid workstation, or a guest room styled with a small desk and reading chair can spark imagination.
Consider:
- Showing how a basement could flex between media room and home gym
- Styling a nook with a desk even if it’s not a full office
- Using simple staging to hint at multiple uses instead of labeling a room too narrowly
How to Help a Smaller Space Feel Larger (Without a Remodel)
If you’re preparing your home for sale and want to make smaller rooms feel more spacious, paint sheen matters more than most people realize.
- Skip flat paint in smaller rooms. Flat finishes absorb light and make walls feel closer.
- Choose an eggshell or satin sheen, which reflects more light and gives the room a sense of depth and openness.
- Use fewer large, scaled furniture pieces rather than several smaller ones to help the eye read the space as larger.
- Mirrors and clean window treatments can increase the feeling of openness by bouncing natural light.
These simple adjustments can have a big impact on how buyers perceive the size and livability of the home.
The Bottom Line
The perfect home in 2025 isn’t necessarily the biggest one. It’s the one that fits your lifestyle. And right now, buyers are proving that flexibility, layout, and well-used spaces matter more than square footage alone.
Thinking about buying or selling in the Denver Metro Area? Let’s talk. I’d love to help you find a home that fits the way you actually live, or help you present your current home in a way that speaks to today’s buyers.