🏡 What New Construction Buyers Want in 2026 — And What It Means for Washtenaw County

 

Every year I keep an eye on the big national surveys that track what buyers actually want, because the headlines are useful — but the local numbers are what matter when you're standing in a lot in Chelsea or Dexter deciding whether to build. Homes.com just released its 2026 "What New Home Buyers Want" survey, and paired with the latest Michigan construction data, it paints a pretty clear picture for anyone weighing a new build here in Washtenaw County.

📊 The national picture: function over flash

Homes.com partnered with Good Run Research and CMI Research this spring to poll more than 3,000 people aged 25+, all with budgets of at least $250,000, who either bought a new single-family home in the past two years or plan to in the next two. A few findings stood out to me:

• 🎨 Personalization is king. Roughly 70% of buyers want full structural and aesthetic customization — they're treating a new build as a canvas, not a template.

• 📐 The sweet spot is a 4-bedroom, 2.5-bath home in the 2,000–2,500 square foot range. Most buyers are shopping in the $250,000–$450,000 range, with another quarter looking up to $650,000.

• 💻 Remote work is still shaping the floor plan. 64% of respondents work remotely at least once a week, and 49% specifically want a second home office — not just one.

• 🤖 AI has entered the home search. 51% of buyers now use AI tools while house hunting, many multiple times a week.

• 🌳 Backyards beat clubhouses. A private backyard and visible security features (cameras, lighting) ranked far above community amenities — only about 1% cared much about a clubhouse or pool, and roughly 3% cared about things like a golf course.

• 🍳 Kitchens and bathrooms still close the deal. More than 80% of buyers want natural light, quality cabinetry, and extra storage in the kitchen; 62% specifically want both a freestanding tub and a separate walk-in shower in the primary bath — not one or the other.

• 💰 Money worries lead with insurance. Homeowners insurance costs topped the list of financial concerns, ahead of property taxes and closing costs, and roughly three-quarters of first-time buyers worry about qualifying for a mortgage at all.

• 🛋️ The "vibe" matters as much as the spec sheet. When asked what they want a home to feel like walking through the front door, the top two answers were simply "comfortable" and "safe."

🏗️ What this looks like in Michigan

The Home Builders Association of Michigan's numbers back up the "buyers are being selective but committed" story we're seeing nationally. Statewide single-family permits grew about 4.7% last year to roughly 15,821, with the average market value of a new single-family home climbing to about $475,000 — up 6.5% year over year. HBAM is actually forecasting a slight pullback in permits this year, to around 15,376, which tells me builders expect demand to stay steady rather than surge.

Here in Washtenaw County, new construction has been more variable — building permits (all structure types) ran about 1,193 in 2024 after a stronger 1,597 in 2023, reflecting the same rate-driven hesitation buyers everywhere have felt. And with conventional loan limits here rising to $832,750 for 2026, there's real room for buyers to finance a well-built new home without stepping into jumbo territory — something worth knowing if you've assumed new construction is out of reach.

✅ What this looks like in Washtenaw County

If you're weighing new construction in Chelsea, Dexter, or anywhere in Washtenaw County right now, a few things from this data are directly actionable:

1. 🎨 Don't assume "new" means "cookie-cutter." With 70% of buyers pushing for customization, builders in our market are increasingly flexible on finishes and layout — ask.

2. 🌳 Prioritize the home office (or two) and the backyard over a clubhouse. If a community's marketing leans hard on shared amenities, dig into whether the actual floor plans deliver the private space and flex rooms buyers are telling surveyors they want.

3. 💰 Budget for insurance early. Michigan buyers, especially first-timers, should get a real homeowners insurance quote before falling in love with a lot — it's the top financial worry nationally, and it can move your monthly payment more than people expect.

4. 🏦 Use the loan limit increase to your advantage. At $832,750 for a conventional loan in Washtenaw County this year, more new-build price points are accessible without needing a jumbo loan.

5. 🛋️ Trust the "vibe" test. If a model home doesn't feel comfortable and safe the moment you walk in, that's data too — buyers nationally are telling us that emotional read matters as much as the square footage.

New construction is still a strong option in our market, but the smartest buyers this year are the ones pairing national trend data with a clear-eyed look at local permit activity, price growth, and financing. If you're thinking about building or buying new in Washtenaw County, I'm happy to walk through what's realistic for your budget and timeline.

---

Sources: Homes.com/Good Run Research/CMI Research "What New Home Buyers Want" 2026 survey; Home Builders Association of Michigan; U.S. Census Bureau building permit data via FRED; FHFA/HUD 2026 conforming loan limits for Washtenaw County.