Conversion of Living Spaces into ‘Home Offices’ Continue Dominating Design Trends in US

NEW JERSEY, Aug. 5, 2025 — COVID-19 Pandemic has changed the course of daily life while working remotely has created a huge demand for ‘home offices.’ Prior to 2020, ‘home office’ was an add-on but now this segment features among the top three buyer priorities.

According to Zillow, listings mentioning “home office” jumped over 35 percent in popularity from 2019 to 2022.

Many New Jersey homeowners converted basements, attics, or spare bedrooms into dedicated workspaces.

Patios, decks, and balconies are now marketed as functional living spaces, not just add‑ons. Builders are incorporating covered porches, fire pits, and even outdoor kitchens for year‑round use in New Jersey’s varied climate.

Families needed the same square footage to do more such as work, school, exercise and entertainment. Movable walls, sliding partitions, and convertible furniture have grown in popularity, realty players said. 

What are Current Trends in Home Sizes?

There is a huge preference for suburban and semi‑rural homes. Many moved out of dense urban centers like NYC to nearby NJ suburbs for more space and greenery. This fueled higher demand (and prices) for homes with larger lots, driveways, and storage.

Real estate prices during Covid-19 surged up to 20 percent in 2020-2021 and 15 percent during 2021-2022. As per realty sector data, the average price increase has historically been around 8-9 percent. The increase in growth was fuelled by the fact when everyone was caged in their homes during the pandemic, their perspective of using a home changed, says California-based Varun Ish Nanda, Broker/Owner, Nanda Realty.

“Older families in bigger homes sold their properties to move to smaller ones. Young families with kids in smaller homes wanted bigger homes for backyard etc,” said Varun. A surge in market has been witnessed that after buying a house, people design it in their own way, added Varun.

Home Remodelling and Cost

A report by the National Association of the Remodelling Industry, or NARI, reveals that homeowners and renters remodel, redesign, and restructure their homes for a variety of reasons.

As per NARI data, Americans spent an estimated $603 billion in 2024 on remodelling their homes. Among NARI members, 42 percent found a greater demand for contracting in remodelling work during 2023 and 2024. Fifty-seven percent of NARI members cited that the scale of the projects increased, resulting in either a larger project or the remodelling of more than one room in the during these two years.

This is in sync with the realtors saying that 46 percent of home buyers are less willing to compromise on the condition of the home when purchasing.

In 2024, the average cost for home design services rose by 12 percent, reaching about $6,652, primarily due to higher building material prices and labor inflation

The standard industry bracket for a residential architect fee ranges from 5 percent to 20 percent of construction budgets ($2,000–$15,000 for smaller projects), with custom projects often requiring 8–15 percent or even higher for remodels or additions.

Key Aspects to Keep in Mind for Home Offices

There are different aspects which people need to keep in mind for office home designs:

Multi‑Purpose and Flexible Layouts: Having a spare room for work-from-home is not sufficient as homeowners create multi-purpose environments that can have a smooth transition between work and other day to day functions such as wellness and leisure activities.

Before work-from-home became a new normal, work and life were seen two different aspects, both demanding distinct spaces for each. The growing work-life integration has resulted in more fluid spaces where the traditional dedicated office model is evolving to meet these lifestyle needs.

Technology Integration Skyrocketed: The technology integration in home designing has skyrocketed. Homes are increasingly wired for high‑speed internet in every room. We see more of smart home systems controlling lighting, climate, and security remotely. Acoustic treatments and soundproofing now part of premium upgrades.

More Emphasis on Health and Wellness: Open‑plan layouts are shifting toward semi‑open to allow privacy when needed. More windows and natural light (biophilic design) are preferred to improve mental health.  Demand for high‑quality air filtration and touch‑free fixtures has increased. Wellness rooms for yoga, meditation, or fitness have gained traction.

Movable walls, sliding partitions, and convertible furniture are increasingly popular, while patios, decks, and balconies are now seen as functional living spaces rather than add-ons.

Inputs from Saqib Malik

Editing by David Ryder