Smart Home Technology Offers Profit Boosts for Builders and Beyond
In an October 2015 webinar, economists affiliated with the National Association of Home Builders (NAHB) predicted a notable increase in single-family home construction over the next two years — up to 1 million new structures in 2016 and 1.2m in 2017. Driven by employment increases and pent-up demand since the recession, this upturn in the industry represents a significant opportunity for builders and developers.
With changes looming on the horizon, builders should be looking for ways to maximize their edge in acquiring new projects. One often-overlooked feature offers a promising boost to profitability margins: smart home technology that puts Internet-driven automation and security features at the homeowner’s fingertips.
Internet Connectivity: A Rising Demand
According to the Consumer Electronics Association’s (CEA) recent “State of Builder Technology Market Study,” nine out of ten newly constructed homes come with pre-equipped broadband connections. With the rise in telecommuting and data-intensive website demand, it’s no wonder that home buyers are making pre-installed Internet a high priority.
What Is A Smart Home?
Smart home technology can encompass a wide variety of features and services, from basic security setup to intricate home theater systems. Fingerprint-activated door locks can be a lifesaver for those prone to locking themselves out, while sophisticated security cameras use facial recognition to identify who should be entering a property (and who shouldn’t). Room-by-room temperature control and on-demand hot water heaters offer not just comfort, but also cost-effective energy consumption.
Finally, a major feature of smart home technology is its built-in ease of automation. When a home’s systems are controlled through the Internet, adjusting to different demands is as easy as punching in a smartphone command. A pre-set “Bedtime” mode, for example, can arm the security system, lock the doors, turn off the main house lights, and turn down the temperature — all with the push of a button.
Building the Properties of the Future
So, how do builders see this new wave of technology? Favorably, according to the NAHB report. Approximately one-third of the builders interviewed stated that pre-wiring for smart home technology would increase their potential profit, and many of them have already experienced revenue boosts from installations.
The number one factor builders need to plan for? Security systems. Home safety is by far the most important factor driving adoption of smart home technology, and many consumers stated that they would not even consider a system that did not include it.
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