For the most part, real estate investors aren’t interested in “trendy” homebuilding. Our focus is usually on function and longevity, not style. This isn’t to say investment properties don’t look nice – but they tend to be renovated for timelessness, not flash-in-the-pan appeal.

But we’re not talking about choosing fancy backsplashes or the right paint color for some HGTV dazzle. Investors should pay attention to building trends – including materials, home styles, layouts, and amenities. These give us insight into what buyers – and, in turn, renters – want in a home.

These are the trends (sourced from U.S. News) to watch and consider when making rental property renovations.

7 Home Building Trends to Guide Rental Property Renovations

Trend #1 – Pre-Finished Engineered Floors

Flooring technology has come a long way in recent years. Thanks to modern innovations, hardwood floors aren’t the only choice for a high-end look. Engineered flooring allows for wider, longer planks that create a cohesive, attractive floor. Because these are pre-finished, there is no on-site sanding or varnishing.

Investor Takeaway

Engineered materials not only look great, but they’re more durable and structurally sound. They also tend to be more cost-effective. For real estate investors, engineered flooring is the way to achieve a luxe look that is easy to clean and maintain.

Trend #2 – Mixed-Use Spaces 

Mixed-use spaces are those where people can live, work, and find recreation. Think of apartment buildings with ground-level floors comprising commercial space for restaurants, gyms, and shopping. While SFR investors won’t be making their rental properties stand-alone, there are some things to learn from this trend.

Investor Takeaway

People want convenience and flexibility. Where you buy or build matters. What are the nearby amenities? How walkable is the area? Consider your demographics carefully and what they value most in a home.

Trend #3 – All-Electric Homes

People say that gas stoves cook better food, but we’re not sure the perceived difference is worth the risk. New homes shift away from relying on gas appliances, instead opting to go electric – whether traditionally or by solar power.

Investor Takeaway

Gas is an extra utility expense. While it may be a nominal amount, gas also poses a significant health risk: carbon monoxide. Going electric prevents this potentially fatal situation while also eliminating a utility bill. Not only that, but options for solar and green energy could keep your electric bill lower, too.

Trend #4 – Single-Story Builds

Though two- and three-story townhouses have been the popular development for the past few years, the trend was never about the people living there. It’s about maximizing units on a lot. With trends turning towards homebuyers and rental residents, though, single-story properties are making a comeback. They’re accessible for those with mobility challenges, safer for kids and adults, and more functional. (If you’ve ever had to do laundry across multiple stories, you know!)

Investor Takeaway

Single-story SFRs are more cost-effective, safe, and accessible. They’re also more cost-effective when it comes to renovations.

Trend #5 – Family-Oriented Spaces

The family has always been a defining feature in any home, but now, design reflects the principle. We see it most in kitchens – multiple sinks, larger ranges, and ample prep space encouraging cooking collaboration.

Investor Takeaway

Does your investment property have ergonomic features? Consider the layout. Is anything awkward? Does it make having two people in the same space difficult? Consider how people will live in and live together in this space. The more you consider the daily experience of your residents, the more likely your property will be a long-term home.

Trend #6 – Outdoor Emphasis

An outdoor emphasis emerged during the pandemic and seems here to stay. Buyers are interested in creative and aesthetically pleasing outdoor living spaces.

Investor Takeaway

While no investor is expected to create an outdoor oasis, curb appeal and backyard features are worth considering. Patios, porches, and privacy fences can all add pizzazz and appeal!

Trend #7 – WFH Spaces

Finally, work-from-home spaces are being built into modern homes. We’re not referring to home offices, though these certainly exist. It’s more about adding areas with built-in desks or space for them in great rooms, living areas, and other parts of the home.

Investor Takeaway

Because investors often buy older homes – homes constructed with the societal needs of yesteryear in mind – WFH spaces don’t come pre-built. During the renovation process, consider how the layout can change to be flexible and functional for residents.

While aesthetics come secondary to most investors, it’s always wise to appeal to the needs and sensibilities of your target demographic.

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