With holiday shopping now in full swing, consumers are being asked to make a lot of decisions. Do I spend less this year? Should I buy just a few really nice gifts instead of a barrel of lesser items? Are there any gifts I can make myself that might be more meaningful -- and save some cash?

Homebuyers today might be smart to apply some of this same thinking as they shop for a new home in this market. While lower mortgage rates are making the thought of a new or replacement home very attractive, trade-offs can make a property even more affordable.

In its report on "What 21st Century Homes Buyers Want," the National Association of Home Builders asked new and potential homebuyers to consider a number of ways to make a home more affordable.

The NAHB clearly found that to homebuyers, size matters. Only 24 percent of the respondents were willing to buy a smaller house to save money. That reflects the well-documented trend toward larger and larger homes. In a similar survey in 1980, the NAHB found that more than half the respondents were willing to accept a smaller home. By 1985, that percentage had dropped to one-third.

If homebuyers won't compromise on the size of the house, where are they willing to bend a little? The most-popular choice in the survey was leaving more "unfinished space that you could finish later." Fifty-four percent of those responding felt they could live with unfinished spaces, perhaps a basement or extra bath. For the do-it-yourselfer, there are savings to be had, as well as the potential pride that comes from showing off your own handy work -- when you get around to doing it. Others might find private contractors willing to do the work for less than the homebuilder. Still others might decide they don't really need that space finished anyway.

The second most-popular way to make a home more affordable is to find one that is farther from shopping and entertainment. That's the choice of 36 percent of the respondents. Twenty-seven percent were willing to accept a longer commute to work to get a home within their price range.

A smaller lot was favored by 29 percent of those surveyed while fewer amenities were acceptable to 26 percent of homebuyers.

Today's homebuyers are clearly concerned about the quality of their homes. Only six percent were willing to accept less expensive materials as a trade-off to making a home more affordable.

With cost taken out of the picture, the profile of today's homebuyers becomes much less clear. When asked to choose between a bigger house with fewer amenities or a smaller house with high quality products and amenities, respondents were about evenly split. People in the South Central part of the country, families with children, and younger buyers tended to prefer the bigger house. Older respondents, childless couples and single people tended to favor high quality products and amenities.

Those surveyed also split fairly evenly over the preference for some of the trendier new floor plans. There was no clear choice between "a much larger family room and no living room" or a "family room and living room about equal in size." Respondents favored "an open living room/dining room" by a very slim margin over "distinct and separate dining and living rooms." A very slim majority favored a "master bedroom on the first floor in a two-story home" versus a "master bedroom on the second floor."

Carol Ochs is a Washington-based reporter who covers new home trends.

Published: November 27, 2001

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