Restb.ai has debuted a new “Special Report Series” to unlock unique visual insights provided from Restb.ai’s proprietary AI models. The inaugural report is the first-of-its-kind study to examine the impact of floor plans on Days on Market (or DOM).
Restb.ai’s study examined 100,000 single-family properties listed between May 1, 2023, and April 30, 2024, across 10 metro markets, including: Chicago, Grand Rapids, Portland, Denver, Houston, Las Vegas, Jacksonville, Saint Louis, Phoenix and Dallas. Restb.ai stated that the study used computer vision and machine learning to analyze property listings at scale to reveal the true impact of floor plans on selling speed.
Overall, the new Restb.ai Special Report reveals significant variations in market penetration—the percentage of listings that include floor plans—across different markets. On average, Chicago had the highest rate of listings with floor plans (31.4%), while Saint Louis had the lowest (4.9%). The study also showed a growing trend in the use of floor plans in property listings, reflecting a shift towards providing more detailed property information.
Key findings:
- Chicago: Listings with floor plans reduced DOM by 33%, decreasing from 11.3 to 8.5 days.
- St. Louis: The DOM of properties with floor plans decreased by 41%, from 8.6 to 6.1 days.
- Portland: Despite an overall reduction in floor plan usage, properties with floor plans experienced a 17% reduction in DOM, from 7.1 to 5.9 days.
- Denver: Listings with floor plans saw a decrease in DOM from 9.1 to 7.8 days, reflecting a 14% improvement.
- Dallas: Contrary to the general trend, the DOM of properties with floor plans increased by 23% from 14 to 18.3 days.
- Las Vegas: Listings with floor plans showed a slight increase in DOM, from 12.9 to 13.2 days, indicating a 2% rise.
Nathan Brannen, Chief Product Officer of Restb.ai, emphasized the importance of these findings. “Our study highlights how floor plans can enhance the appeal of a listing, but their impact varies based on specific market dynamics. Integrating floor plans into property listings can be a crucial decision for selling agents, offering a competitive edge in markets with a high presence of floor plans.”
Top 5 takeaways:
- Geographical diversity in floor plan penetration: The study found that 14.5% of listings across various markets included floor plans, with Chicago and Grand Rapids leading at 31%, while Jacksonville and St. Louis were at the lower end with 6.7% and 4.9%, respectively
- Growing trend in floor plan usage: Most cities have seen a year-over-year increase in floor plan usage, with notable increases in St. Louis (from 2.8% to 4.9%) and Phoenix (from 5.5% to 8.5%).
- Localized impact on DOM: Markets with at least 10% of listings containing floor plans showed an average reduction of 1.4 days in DOM, equating to an 18% decrease.
- Effectiveness in high penetration markets: Cities like Chicago and Grand Rapids, with high floor plan penetration, saw significant reductions in DOM, emphasizing the importance of including floor plans in property listings.
- Varied market dynamics: Some markets, such as Dallas and Las Vegas, showed an increase in DOM despite including floor plans, highlighting the need for localized marketing strategies.
“As floor plans become more common, their effectiveness in influencing buyer decisions appears to become even more pronounced,” concluded Brannen, “and as a result, one would expect more listing agents to incorporate floor plans into their listings moving forward.”
