It's cliché, but the old real estate adage "location, location, location" is still as relevant as ever to home buyers.
The National Association of Realtors recently published its 2026 Generational Trends Report, and the survey question about the compromises that buyers made last year caught my eye.
Across every demographic, price was the No. 1 compromise. The report doesn't add any more detail, sadly. It would be nice to know if that's a case of buyers compromising by spending more in order to get the right home...or if it's a case of buyers having to compromise and spend less because their budget didn't go as far as they hoped.
Nearly a quarter of buyers compromised on the home's condition, which suggests they had to look for a home that needed work because that kind of home is more affordable. But it could also mean they were willing to buy an imperfect home in order to be in a good neighborhood or near a specific school. I'll share more on the importance of "location" below, but for now, here's what buyers say they compromised on last year.
You can see the power of location at the bottom of that chart. Things buyers were NOT willing to compromise on?
- Quality of schools
- Distance from school
- Quality of neighborhood
This tells us that buyers are incredibly protective of their lifestyle and environment. They'd rather sacrifice the home's physical attributes -- such as its condition (24%), style (17%), or lot size (14%) -- than settle for a location that doesn't meet their standards.
I think this is proof of a saying I've heard before: You can change the house, but you can't change the dirt. Buyers are much more willing to settle for a house that isn't "perfect" if it means living in the right area.
-Cari
