What the Research Shows About Property Values and Resale
Let’s talk about something most people building custom homes would rather not think about: selling.
Here’s the reality: according to the National Association of Realtors, the average homeowner stays in their home for 13 years. Life changes. Jobs relocate. Families grow. Parents age. People move.
Even if you’re absolutely certain you’ll never sell, here’s something to consider: your home is likely your single largest financial asset. Whether you plan to sell this year or in thirty years, the value of that asset matters. It matters a lot.
And here’s what most homeowners don’t realize until it’s too late: the decisions you make during design and construction directly impact how much your home will be worth—not just today, but decades from now.
So let’s have the conversation nobody wants to have, but everyone should: How much more is an architect-designed home actually worth compared to a generic contractor spec home?
The answer might surprise you. And it’s backed by real research, not just industry marketing.
What the Research Actually Shows
For years, architects have claimed that good design adds value to homes. Builders have rolled their eyes. Homeowners have wondered who to believe.
Fortunately, we now have actual data. Multiple studies from different countries have measured the financial premium of architect-designed homes. The numbers are remarkably consistent—and remarkably compelling.
The London Study: 12-19% Premium at Resale
Between 2014 and 2017, The Modern House, a London-based estate agency specializing in architect-designed homes, partnered with property market intelligence firm Dataloft to answer a simple question: Do architect-designed homes actually sell for more?
They compared over 200 of their sales against 14,084 conventional houses sold across 100 postcodes in the wider London market.
The results?
Architect-designed homes sold for an average of 12% more per square foot than similar-sized houses in the same postcode. For homes valued above £1 million, that premium jumped to 19%.
To put that in practical terms: if comparable spec homes in your area sell for $1.300,000, an architect-designed home would sell for $1,456,000 to $1,547,000—a difference of $156,000 to $247,000.
That’s not just covering your architectural fee. That’s profit.
The Melbourne Study: $256,000 More Value Over 10 Years
In Australia, the University of Melbourne’s School of Design conducted groundbreaking research comparing homes renovated by architects versus those renovated without architects.
Dr. Peter Raisbeck asked a straightforward question: “Do renovations by small-practice architects improve capital gains in the Melbourne residential property market?”
The answer was unequivocal: Houses renovated by architects increased in value 1.2% per annum more quickly than those renovated without an architect.
On the surface, 1.2% doesn’t sound dramatic. But compound that over time for a median-priced $1.2 million home, and you’re looking at an additional $256,000 in value over ten years.
Perhaps even more striking: For every dollar spent on architectural fees, the property gained $11.40 in capital appreciation.
Read that again. An $11.40 return for every $1 invested in architectural services. Even the best stock portfolios rarely deliver those kinds of returns.
The Real Estate Professional Perspective: “Nearly Always Above Average”
We also spoke with real estate agents who’ve sold the same architect-designed homes multiple times over their 20+ year careers (different owners, same exceptional homes).
Seasoned realtor Darcy Lord put it bluntly: “Architect-designed homes consistently perform well on the market. The prices achieved are nearly always above average.”
He noted that buyers are specifically drawn to the “finish, flow, and unique qualities” that architect-designed homes deliver—qualities that spec homes struggle to match.
And here’s something critical: these homes don’t just sell for more—they sell faster. One study found that thoughtfully designed homes can sell 3 times faster than generic alternatives.
In a real estate market, that combination of premium pricing and reduced time on market is pure gold.
Why Architect-Designed Homes Hold Their Value
Numbers are compelling, but understanding the “why” helps you make better decisions during the design process. What exactly are buyers responding to when they pay more for architect-designed homes?
1. Timeless Design vs. Trendy Builders’ Special
Walk through a spec home subdivision built in 2005 and you’ll immediately know it: the builder-grade crown molding, the faux Mediterranean arches, the beige everything. It screams “mid-2000s contractor special.”
Architectural design focuses on timeless principles: natural light, spatial flow, connection to site, honest materials, human scale. These don’t go out of style because they’re not in style—they’re fundamental to what makes spaces feel good.
Spec homes are designed to check boxes and maximize builder profit. Architects design homes to work beautifully for decades. When you’re competing in the resale market fifteen years from now, that difference will be obvious to every buyer who walks through the door.
2. Quality You Can Feel
Here’s what real estate professionals consistently report: buyers can sense the difference between an architect-designed home and a spec home within minutes of stepping inside.
It’s not always something they can articulate. But they feel it.
The quality of light. The flow between spaces. The way the house responds to its site. The thoughtfulness of storage. The hierarchy of spaces. The details that reveal care rather than expedience.
Spec homes are designed by asking: “What’s easiest and cheapest to build?”
Architect-designed homes are designed by asking: “What will make life better for the people living here?”
Buyers aren’t stupid. They recognize which question drove the design.
3. Adaptability and Longevity
Generic spec homes are designed for the mythical “average buyer”—a demographic that doesn’t actually exist.
Architect-designed homes are designed for how people actually live, with spaces that can adapt as needs change. That flexibility has real market value.
The home office that works equally well as a nursery. The great room that can be divided if needed. The master suite that could accommodate aging parents. The mudroom positioned where families actually enter the house.
These aren’t expensive features—they’re smart design decisions. But they translate directly into broader market appeal when you sell.
4. Less Susceptible to Market Fluctuations
Research shows that architect-designed homes hold their value better during market downturns.
Why? Because they’re not competing primarily on price—they’re competing on quality. In hot markets, they command premium prices. In slow markets, they’re the homes that still sell, because discerning buyers with money are always looking for quality.
Spec homes are commodities. When the market softens, commodities get hammered.
Unique, well-designed homes maintain value because they’re not replaceable. There’s always a buyer looking for something special.
5. The “Association Value” Factor
This one might seem superficial, but it’s real: architect-designed homes carry cachet.
Just as people will pay more for a designer handbag or a architect-designed chair, they’ll pay more for a architect-designed home. There’s perceived value in saying “an architect designed our house.”
Is this entirely rational? Maybe not. Does it affect resale value? Absolutely.
The Real-World Math: What Does This Actually Mean?
Let’s run some real numbers to make this concrete.
Scenario based on a $1.2M Construction Budget
Builder’s “Free Design” Approach:
- Final home value: $1.2M
- Resale value: $1.75M
- 10-year appreciation: Standard market rate
Architect-Designed Approach:
- Architectural fee (8%): $96,000
- Total project cost: $1.296M
- Resale value (12% premium): $1.96M
- 10-year appreciation: Standard rate + 1.2% annually extra = $256,000
Net Financial Difference:
- Higher immediate resale value: $210,000
- Additional 10-year appreciation: $256,000
- Minus additional upfront cost: -$96,000
- Net benefit over spec home: $370,000
Plus: you lived in a better-designed, more functional home for those years.
Even if these numbers seem optimistic to you, cut them in half. Cut them by two-thirds. You’re still looking at significant financial advantage.
“But I’m Building My Forever Home—I Don’t Care About Resale”
We hear this a lot. And we respect it—there’s something beautiful about building without compromise, focused purely on what will make your life better.
But here’s the thing: even if you never plan to sell, the principles that create high resale value are the same principles that create great homes to live in.
Homes with high resale value have:
- Natural light and great spatial flow
- Thoughtful connection to their sites
- Functional layouts that adapt to changing needs
- Quality materials that age beautifully
- Details that reveal care
These aren’t features buyers want that you don’t. These are features that make homes wonderful to live in, period. The house that would command the highest premium at resale is also the house you’ll love living in most.
Plus, consider this: your financial situation might change. Your family situation might change. Your health might change. Life is unpredictable.
If circumstances force you to sell earlier than planned, wouldn’t you rather have that financial cushion? Wouldn’t you want to know your home will sell quickly for maximum value? Building with resale value in mind isn’t pessimistic—it’s prudent.
The Features That Drive Premium Value
Based on the research and real estate professionals’ feedback, here are the specific design elements that drive higher resale values:
1. Connection to Natural Light and Climate
Homes that maximize natural light, capture breezes, and respond to their climate consistently perform better. This isn’t about expensive windows—it’s about smart orientation and planning.
2. Indoor-Outdoor Integration
Thoughtful connection between interior and exterior spaces adds perceived square footage and lifestyle value without major cost.
3. Spatial Flow and Hierarchy
Homes where spaces feel connected yet distinct, where circulation is intuitive, where public and private zones are clear—these aren’t expensive features, they’re design intelligence.
4. Considered Material Palette
Not luxury materials—considered materials. A consistent, thoughtful approach to finishes creates cohesion that reads as quality.
5. Details That Reveal Care
Custom cabinetry doesn’t mean expensive cabinetry. It means cabinetry designed for how you actually use your kitchen. These details are what buyers notice and value.
6. Energy Efficiency and Sustainability
Modern buyers increasingly value low operating costs and environmental responsibility. These features protect value as energy costs rise.
7. Flexibility and Adaptability
Spaces that can serve multiple purposes appeal to a broader buyer pool and command higher prices.
None of these features require unlimited budgets. They require thoughtful design—exactly what architects provide.
The Investment That Pays You Back
Let’s return to where we started: the cost of hiring an architect.
Yes, architectural fees represent a real upfront investment—typically 8-12% of your construction budget.
But the research is unequivocal:
- 12-19% higher resale value (The Modern House study)
- $11.40 return for every $1 in fees (University of Melbourne)
- $256,000 additional appreciation over 10 years (Melbourne study, median home)
- 3x faster sale time (multiple studies)
- Better performance in down markets (industry observations)
This isn’t marketing spin. This is peer-reviewed research and real market data.
The cost of architectural services isn’t an expense—it’s an investment with documented returns that exceed almost any other home improvement decision you’ll make.
The Question You Should Really Be Asking
The question isn’t “Can I afford to hire an architect?”
The question is: “Can I afford to build without one?”
Because here’s what we know after decades in this field:
The cost of an architect is finite, known, and predictable. You pay our fee, you get professional design services, done.
The cost of NOT hiring an architect shows up in lower property value, longer time to sell, fewer interested buyers, and a home that never quite feels as good as it could have been.
That cost is harder to quantify upfront. But it’s real. And it’s usually much larger than our fee.
Twenty years from now, when you’re sitting in your beautiful home—or when you’re selling it for a premium price—you won’t regret investing in good design.
But we’ve never met someone who regretted choosing the architect-designed path. We have met plenty of people living in spec homes who wish they’d made a different choice.
Make the Investment That Makes Sense
Building a home is likely the largest financial commitment you’ll ever make. It deserves to be done right.
The math is clear: architect-designed homes are worth more, sell faster, hold their value better, and provide a better return on investment than generic spec homes.
This isn’t opinion. This is measured, documented fact.
The only question left is: what kind of home do you want to build?
Ready to Talk Numbers?
We’d love to have an honest conversation about your project: your budget, your site, your goals, and how architectural design can protect and enhance your investment.
No pressure. No obligation. Just real talk about real value.
We spent $92,000 on architectural fees for our $1,475,000 home. Five years later, we sold our property for $1,735,000 in a market where comparable spec homes were selling for $1,430,000. Do the math—that’s $305,000 in extra value for a $92,000 investment. And we lived in a dramatically better home for all those years. No regrets whatsoever.” — Recent Clients, Victoria, BC
