The Future of Residential Design Must Balance Affordability, Satisfaction, and Experience

People have always changed where they live with some frequency, but the pandemic may have shifted how we make housing decisions. Whether residents move a few blocks down or across the world, migratory trends are catalyzing new conversations in the industry. In the U.S. alone, 40 million people move per year — that’s about 10% of the entire population. As architects and designers, we are focused on what people want from their next home. But across the world, the pandemic has fundamentally altered residential experiences. Remote work creates new needs for residential units, and rising housing costs forces compromise on what to prioritize. Among the factors impacting people’s decisions about where to live, what matters most?

Gensler’s Residential Experience Index unpacks this question. Our research leverages two major surveys conducted across nine diverse markets in winter and summer 2021. We investigated residents’ current housing experiences and what they value for the future. Gensler has taken on dozens of residential projects so far this year, consulting new challenges and opportunities while also helping to add much-needed supply to the more than 120 million housing units in the United States and countless housing units across the world. Our firm shares the responsibility to focus on building new places to live and offering research-backed designs that support diverse human needs.

As we continue to dig into the data, three themes are emerging:

1. Affordability is the primary driver for residents regardless of location, housing type, and even income.

Pressures around affordable housing have been building for decades. Today, people across the income spectrum share anxieties about rising costs. On average, 45% of survey respondents said the housing around them is unaffordable, and 40% are worried about getting priced out of their neighborhoods. However, affordability is not solely a problem of low-income residents — many of those with higher incomes reported having trouble making monthly rent or mortgage payments.

Affordability fundamentally permeates residents’ housing decisions. It is the top driver behind people’s housing decisions and the home they will choose next. While some spaces are more important to residents, many would be willing to sacrifice extraneous amenities and features in exchange for a reduction in their housing costs.

2. Design has an enormous impact on satisfaction — especially within the unit.

After affordability, a home’s design quality is the top priority. This was consistent across our markets surveyed, although the solutions themselves would vary based on location. While the size and spaciousness of the unit are also key drivers behind housing decisions, 62% of multifamily respondents said they would prefer a well-built, well-designed unit that is less spacious over a more spacious, poorly designed unit.

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