Canadian home buyers want smaller homes with multipurpose rooms and energy saving features, but don't take away that two-car garage.

These were some of the tips that members of the Canadian Home Builders' Association recently heard from Tim Bailey, general manager of Avid Canada, a research and consulting firm. Bailey presented some results from an annual report his company produces for the North American home building industry.

"For Canadian home builders, the need to understand what design features buyers truly want is more important than ever," Bailey says. "The most successful builders already recognize what design elements and amenities are important to various demographics and are able to quickly adapt to meet home buyers' ever-changing needs."

Bailey says that with housing costs increasing, buyers know that "big comes with a price" and have developed an appetite for smaller, well-planned homes.

Condominiums seem to be heading the same direction. Tridel Corp., a major home builder in the Toronto area where a record number of condominium projects are being built, says that the average size of new condo units has been getting smaller during the last five years, a trend it expects to continue. It says the most popular condo layout is a one-bedroom plus den arrangement, followed by one-bedroom units.

"While many consumers are willing to forgo space, they are not equating this with having to forfeit functionality," says Bailey. "Design creativity is requisite to adapt to this changing preference."

Storage is extremely important to home buyers of all types. Avid Canada lists walk-in closets at No. 1 on the list of must have features, and linen closets rank also rank as an "essential element" in any new home design.

Closet organizers and storage bins throughout the home are helping reduce clutter. Seating that can double as storage bins take an old idea and give it a new spin.

Although Canadians are willing to live in smaller spaces, it appears their cars need some extra room. Bailey says that "home designs offering only single garages are going to be a deterrent to today's home buyers."

Multipurpose rooms are in, while formal living and dining rooms are out. Rooms that can be used as a home office during the day and for activities such as homework, crafts and hobbies or gaming at night are sought after.

Built-in desks and computer stations in the kitchen remain popular design features. A kitchen island on wheels or a kitchen cart provides portable storage as well as additional counter space when it's needed.

Large kitchens are used as the "base camp" in the home. Open concept designs that connect the kitchen to family and dining areas have been popular for many years and continue to attract buyers. The big farmhouse kitchens of old have been revived and renamed "kitchen lounges".

Bailey says that energy efficient homes are "not on the wish list for buyers – it is on the 'must' list."

He says: "Paying to operate a home is as important as paying for a home, and energy efficiency is no longer an upgrade in the mind of a home buyer." Energy efficient appliances are also a must.

But Bailey warns that so far consumers have not been as quick to embrace other "green" home concepts. "Renewable products or recycled materials have not taken hold with the masses in the same way that energy efficiency has," he says. The fact that buyers want an energy efficient home gives builders a unique competitive advantage over resale homes, Bailey says.

Despite the Canadian climate, another emerging trend is toward outdoor living rooms, incorporating outdoor cooking areas and fireplaces. "With this in mind, plan designs should accommodate the increasing desire of home buyers to expand their living spaces beyond the confines of their exterior walls," he says.

Large, walk-in showers are in; whirlpool tubs are out. With the aging baby boom population in mind, one-storey home designs are also becoming increasingly important. Where that's not possible, main-floor master suites and bathrooms are in demand, along with wide hallways, good lighting and designs that feature lots of natural light.

Published: August 16, 2011

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Jim Adair is editor of REM: Canada's Real Estate Magazine, a business publication for real estate agents and brokers. He has been writing about Canadian real estate, home building and renovation issues for more than 30 years. You can contact Jim at .