Is Open Concept Out? The Design Shift Investors Need to Watch

For years, "open concept" has dominated the real estate vocabulary, a trend with some true staying power. Tear down the walls, let the light flood in, and give everyone a straight shot from the front door to the kitchen sink. And for a long time, it worked. But trends shift, markets mature, and tastes evolve.

At Regalway Homes, where we specialize in smart real estate development and investment strategies across Ontario, we're paying close attention to what buyers and renters actually want, not what they wanted in 2015. And there's growing evidence that the open-concept layout may be, if not fully out, at least no longer the universal darling it once was.

Why Open Concept Ruled the 2010s

To understand why the pendulum is swinging, it helps to remember what made open concept appealing in the first place. It offered a sense of luxury, even in modest square footage. 

Knocking down a few walls made everything feel bigger, brighter, and more modern. For families with young kids, open sight lines made multi-tasking doable, such as watching the kids while making dinner or having a drink while finishing emails, all in one fluid space.

On the investment side, open concept offered serious practical value. It simplified renovation plans and created a wow factor that could command top dollar in listings. For developers and flippers, fewer walls meant faster builds and fewer materials. And for renters, it helped smaller spaces feel a bit more expansive. But trends, by nature, shift. And the conditions that made open concept so appealing have started to unravel.

The Return of Rooms (and Doors)

Enter the pandemic. Suddenly, that free-flowing space became less of a luxury and more of a logistical headache. Kids needed school zones. Adults needed Zoom zones. Kitchens couldn't bleed into living areas quite so easily when one person was baking banana bread and the other was trying to close a deal over video.

What started as a temporary adaptation has sparked a more permanent reconsideration of 

layout. More buyers and renters now say they want defined rooms and functional separation. That doesn't mean a return to the chopped-up, narrow hallways of mid-century design, but it does mean people are revaluing doors, corners, and a sense of place.

We're now seeing home offices making a strong comeback, dining rooms regaining their dignity, and even semi-closed kitchens reappearing in newer builds. The ability to zone space has become a premium feature, especially in urban Ontario markets where square footage is at a premium and work-from-home culture remains firmly in place.

Get more insights on how remote work is changing real estate here!

How This Impacts Value-Add Strategies

For real estate investors and developers, the shift away from open concept isn't necessarily bad news; it's an opportunity to add strategic value. Rethinking layouts doesn't have to mean adding major square footage. It can be as simple as creating better functionality in existing space.

Think about where a lightweight wall or sliding door might create a valuable nook. Consider how smart millwork or furniture built-ins can offer privacy without closing things off entirely. Glass partitions, double-sided bookshelves, and partial dividers are all ways to add separation while still letting in light.

In Ontario markets where families and professionals are driving demand, the idea of flexible use, rather than simply "open," is becoming the more modern marker of design intelligence. Units that can adapt to their residents' lives, rather than forcing residents to adapt to a fixed layout, are commanding stronger rents and faster sales.

Open Isn't Dead, But It's No Longer Automatic

To be clear, the open-concept layout isn't completely out. In some properties, especially smaller condos or basement suites, it still makes sense to keep things airy and fluid. And for entertaining-focused buyers or renters, open kitchens still have appeal. But the key difference now is that the open concept is no longer assumed. It has to be intentional, justified, and sometimes even balanced with a dose of privacy.

This opens up an interesting space for investors to think creatively. Instead of blindly following the design formula of the past decade, there's room now to really listen to the market, especially in regions like the GTA, Hamilton, or Kitchener-Waterloo, where lifestyle needs are evolving quickly.

More than ever, buyers and renters want homes that feel intuitive. That may mean an open-concept living/dining area paired with a tucked-away office. Or it might mean a two-bedroom layout where each bedroom feels like a retreat rather than just a box off the main room. The cookie-cutter approach is fading, and that's a good thing for investors who are willing to put in the thought.

Where Regalway Homes Comes In

At Regalway Homes, we're already incorporating this shift into our development and renovation strategies. If you're planning your next project or wondering how to make your current property more competitive, book a free consultation with our team. We'll walk you through what layouts are resonating in your target market and how you can get ahead of the curve without overbuilding or over-designing. Book a free consultation to discover how we can help you develop or invest in Ontario.