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Here's how rising housing costs are shaping home decor trends

Owners want flexible spaces that endure, PulteGroup design executive says

Flexible rooms can evolve as families grow and members move out. (PulteGroup)
Flexible rooms can evolve as families grow and members move out. (PulteGroup)

Consumer tastes and habits, driven in part by ongoing housing affordability and cost-of-living challenges, have turned the "everything home" into a leading design trend for 2025.

People expect more from their homes now, according to Angela Nuessle, national vice president of Atlanta-based PulteGroup’s interior design team. With U.S. single-family home prices reaching their 18th consecutive monthly all-time high and millions of owners "locked in" to historically low mortgage rates, more residents need their personal spaces to be sustainable and accommodate all facets of their lives, from work to wellness to entertainment.

"They want the designs to be flexible so that they are longer-lasting," Nuessle said in an interview.

Nuessle's group annually designs and decorates more than 450 model homes and 1.4 million square feet of residential space for the nation's third-largest U.S. homebuilder.

Pulte analyzed feedback from buyers and collaborated with vendors and an international association for color design professionals to identify other design trends for the new year.

1) Mixing up eras

Combining vintage and modern elements is a growing movement in which homeowners incorporate furniture styles from different eras, according to Nuessle.

That gives owners the option of seamlessly mixing vintage pieces with more modern items, a practice that can accommodate even modest budgets, she said.

2) Outdoor sanctuaries

Homeowners can spend more time outdoors by creating easy transitions from interior to exterior spaces that serve as sanctuaries. With affordability issues meaning moving into smaller houses for some buyers, it's important to maximize the outdoor areas, she said.

PulteGroup says creating oases in outdoor spaces will be a focus of home designers in 2025. (PulteGroup)
PulteGroup says creating oases in outdoor spaces will be a focus of home designers in 2025. (PulteGroup)

3) Statement elements

Buoyed by a gradual decline in lighting costs, homeowners increasingly are using lamps, chandeliers and other fixtures to showcase rooms, according to Nuessle.

"Quite honestly, lighting is the jewelry of a room," she said in a PulteGroup video. "Whether you're buying plug-in sconces from Amazon or beautiful, decorative light fixtures that hang over your kitchen island, lighting illuminates and elevates every space."

Lighting, including decorative fixtures, helps to showcase every space in a home. (PulteGroup)
Lighting, including decorative fixtures, helps to showcase every space in a home. (PulteGroup)

Aside from lighting, custom architectural details and mixed metallics add charm and have lasting appeal, Nuessle said.

4) Color transformations

Homeowners are embracing bold colors and warmer neutrals.

"The rich contrast of the deep saturated accents pared with the warming of the neutrals is a big movement we'll see in 2025, in addition to the very strong presence of browns, espressos and the rich warmth that that color palette adds," she said.

Contrary to the neutral transition, a new focus is color drenching and rich saturated colors, such as Navy, Kelly green and black, Nuessle said.

Navy, Kelly green and black are some of the colors expected to be popular with home designers in 2025. (PulteGroup)
Navy, Kelly green and black are some of the colors expected to be popular with home designers in 2025. (PulteGroup)

5) Sustainable Luxury

Luxury in 2025 has less to do with aesthetics than responsible choices that look good, Nuessle said. Energy-efficient appliances with bold designs paired with natural materials exude wealth and environmental consciousness, she said.

While balancing trends with designs that endure can be difficult, Nuessle advised letting larger staple pieces serve as timeless elements because they tend to require the largest investments.

Finally, she encourages new homeowners to take their time designing and decorating.

"It's hard to resist the challenge of wanting to fill the home quickly," Nuessle said. "But the home really should be a reflection of you and your style and your family's values. So really curate the items that you want in your space and don't put pressure on yourself to get it done quick."