2025 Dream Home Must-Haves: Practical, Flexible, and Built to Last

Today’s homeowners are prioritizing practicality over luxury. See what features top their dream home lists—and what they’re willing to sacrifice to afford them.

The American dream home is changing. Today’s homeowners are less concerned with excess and more focused on strategic decisions—both in buying a home and protecting their investment.

Our survey of nearly 2,000 current U.S. homeowners highlights this flexible mindset, revealing that the vast majority (93%) are willing to compromise to help secure a dream home. While many are open to giving up features like extra square footage or luxury upgrades, our data reveals that key dream home essentials (e.g., location and features that promote home protection) remain non-negotiable. 

In addition to these dream home features, when it comes to considering their next move, current homeowners are leveraging their lived experience to make strategic decisions for greater long-term value.

Key takeaways

  • Most homeowners are willing to compromise to attain their dream home, such as delaying major purchases (49%) or pausing travel plans (43%).
  • While 39% of homeowners are open to buying a smaller property, only 22% would give up their desired location—even for their dream home.
  • Homeowners are more likely to invest in upgrades that provide long-term value and are less likely to take on a mortgage higher than their typical comfort level, or stretch their budget, to accommodate dream home features.
  • When it comes to caring for their dream home after purchase, homeowners are thinking ahead. Over half (59%) prioritize upgrades to HVAC, plumbing, and electrical systems to help safeguard their assets and prevent costly repairs.

Dream home must-haves are centered around lifestyle and practicality

Homebuyers are turning away from extravagance and toward practicality in the home buying process, according to our survey data. We found that the modern U.S. homeowner prioritizes outdoor living space, move-in ready homes, and convenient access to good schools, transit, and other local amenities. 

HOME FEATURES RANKED BY IMPORTANCE TO U.S. HOMEOWNERS

1. A spacious backyard or outdoor space

2. Move-in ready home with updated appliances

3. Convenient access to good schools, transit, and local amenities

4. Flexible, multi-use living spaces

5. Home security and safety features

6. Smart and sustainable home technology

Top-ranked: Outdoor living space and move-in ready features

Over one-quarter (26%) of homeowners ranked a generous outdoor space for entertainment or relaxation as the number one feature they look for in their dream home. This signals a strong demand for homes with well-designed outdoor spaces that enhance comfort and livability. 

Meanwhile, 24% of homeowners ranked turnkey home solutions as their top home feature. This data could highlight how homeowners perceive new construction vs. existing homes. In a new home, for instance, updated appliances and modern finishes offer immediate functionality and reduce the likelihood of renovations and repairs.

By selecting a home that’s already in top shape, homeowners can settle in without the stress of maintaining an older home. Data from the National Association of Home Builders (NAHB) supports this, finding that homes built post-2010 required about 3% of their value annually for maintenance compared to 5% for older homes.
Graphic comparing annual maintenance budgets and expenses for newer and older homes.
Graphic comparing annual maintenance budgets and expenses for newer and older homes.

Mid-ranked: Convenience and flexible living spaces

Location matters to buyers just as much as the home itself. Nearly 1 in 5 (18%) homeowners ranked proximity to good schools, transit, and local amenities as a top priority. This preference underscores the value of walkability, shorter commutes, and access to everyday necessities. 

Inside the home, flexibility is another growing priority. Multi-use spaces—such as guest rooms that double as workout areas—ranked at number one for 12% of homeowners. 

With remote work and hybrid schedules becoming more common, this could indicate that buyers are looking for homes that evolve with their needs rather than lock them into a single layout.

Lowest-ranked: Smart and sustainable tech plus home security features

Only 10% of surveyed homeowners listed home security and safety features as a dream home must-have. Smart and sustainable home technology shows a similar trend, with only 10% of respondents naming it a top home priority. 

Although they weren't ranked as top priorities, the long-term financial benefits of these features shouldn’t be overlooked. Take solar panels, for instance. While upfront costs or monthly lease payments can be substantial, the long-term savings are significant.

According to Modern Homebuilder Magazine, solar panels can reduce electricity bills by up to 50%. Homeowners who invest in these types of upgrades could also see higher resale values as a result. 

Dream home, realistic mindset: Homebuyers embrace sacrifice and flexibility

Our survey found that homeowners know what they want in their dream homes and are willing to make compromises to get them. In fact, nearly one-half (49%) of homeowners indicated they would delay major purchases to afford their dream home, while 47% would reduce discretionary spending.

For 43% of respondents who view homeownership as the bigger priority, travel plans are also on the chopping block. These insights suggest a long-term focus among homeowners, with financial security taking precedence over immediate wants.

A smaller property is also a reasonable trade-off for 39% of homeowners, underscoring the desire to own property, even if it means sacrificing square footage. 

However, fewer are willing to compromise on their neighborhood. Only 22% said they’d give up their desired location—even for their dream home. 

Dream home compromises: How men and women differ 

The majority of both male-identifying (94%) and female-identifying (93%) respondents are willing to make compromises to afford their dream home, but some of those compromises vary by gender.

Over half (51%) of women said they’d postpone big purchases and limit discretionary spending on things like shopping and dining out. That’s compared to fewer men who said the same: Only 46% of men reported they’d postpone larger purchases, and 42% said they’d limit discretionary spending. On the other hand, men showed a greater willingness to take on a higher mortgage, with 20% considering it compared to 15% of women. 

When deciding how to afford a dream home, homeowners should carefully weigh the pros and cons of each financial strategy based on their unique circumstances.

Of all our responding homeowners, 30% would consider alternative financing options, such as shared equity programs or adjustable-rate mortgages, to secure their dream home. Cautious about taking on long-term debt, only 17% of homeowners were willing to take on a mortgage higher than what they would typically consider or stretch their budget to accommodate dream home features. 

Factors like income stability, future goals, lifestyle priorities, and long-term financial well-being all play a role in determining the best home buying approach. Taking the time to assess personal needs and financial realities can help ensure a decision that balances both affordability and long-term satisfaction.

The future of homeownership: Practicality and protection take center stage

When it comes to choosing their dream home, our respondents demonstrate a preference for features that protect a property from damage and unexpected repairs.

For instance, when asked which features were most important to them in a newly purchased home, respondents ranked critical systems and structures highest on the list. 

HOME PROTECTION MEASURES RANKED BY IMPORTANCE TO U.S. HOMEOWNERS

1. Updated HVAC, plumbing, and electrical systems

2. A recently replaced roof or foundation upgrades

3. Durable, weather-resistant construction

4. Energy-efficient and climate-resilient upgrades

5. A home warranty for unexpected repairs

6. Smart security and home monitoring

Interestingly, this focus on critical systems mirrors the proactive approach many homeowners take in maintaining their current properties. Our data shows that current homeowners prioritize long-term stability over short-term fixes, which extends to upgrades aimed at enhancing durability.

For example, 59% of homeowners said they prioritize upgrades to plumbing, electrical, or HVAC systems to protect their current home’s long-term value and avoid costly repairs. Weatherproofing (44%) and roof inspections (43%) also rank high, reflecting a strong focus on structural integrity and protecting against rising external threats like extreme weather.

This alignment between what homeowners value in both their current properties and potential new homes underscores a shift toward prioritizing stability, durability, and protection as essential elements of a dream home.
Bar graph showing home maintenance priorities. Top: upgrading systems (59%). Bottom: annual inspections (21%).
Bar graph showing home maintenance priorities. Top: upgrading systems (59%). Bottom: annual inspections (21%).

Future-proofing the American dream home

Our data makes one thing clear: Today’s homeowners are thinking in the long term. Whether choosing durable home features, prioritizing location, or making financial sacrifices, homeowners are making strategic decisions to protect their investments. This mindset extends beyond the buying process, with many homeowners taking proactive steps to maintain and protect their homes once they secure them. 

At Hippo, we know that homeownership is more than just finding the perfect property—it’s about protecting it for years to come. That’s why we provide modern home insurance that helps homeowners stay ahead of potential risks. Explore how Hippo can help safeguard your dream home with smart coverage designed for today’s homeowners.

Download key survey findings 

Want a quick summary of our findings? Download the key insights from our survey, including the top dream home priorities, common homeowner compromises, and the features that matter most for long-term home protection.

DOWNLOAD KEY SURVEY FINDINGS

Methodology

This survey was fielded by SurveyMonkey Audience on behalf of Hippo Insurance Services from March 3, 2025, to March 4, 2025. The results are based on 1,888 completed surveys. Respondents were screened to be U.S. homeowners (this includes single-family homes, condos, and townhomes) who are over 18 years of age. Data is unweighted, and the margin of error is approximately +/-2% for the overall sample with a 95% confidence level.


Any data referencing gender is based on the completed surveys of 882 men and 1,005 women. This data is also unweighted, and the margin of error is +/-3% for the overall sample with a 95% confidence level.


This article is for informational purposes only and was compiled from sources not affiliated with Hippo. While we believe this information to be reliable, we do not guarantee its accuracy or completeness. The maintenance tips provided reflect general homeowner guidelines and are not professional advice. For any insurance-related decision, please consult your licensed insurance producer.

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References to “Hippo” mean Hippo Analytics Inc. d/b/a “Hippo Insurance Services” which is an insurance agency licensed in 50 states (California Lic. No. 0K96532, Texas Lic. No.2213178) that is domiciled in Delaware and has a principal place of business in California. Hippo sells property and casualty lines of insurance for affiliated and non-affiliated insurance carriers and other underwriting entities (“insurers”). Hippo receives compensation from insurers in the form of a base commission that is normally based on a predetermined percentage of the premium. You may contact Hippo for more information about compensation expected to be received by Hippo. Nothing on this site alters the terms or conditions of any insurance policy. Coverage and coverage amounts selected are the decision of the buyer. Availability and qualification for coverage, terms, rates, and discounts are subject to the insurer’s underwriting criteria, and may not be available in all states. Please read your policy for a complete description of coverage.