Can smart homes help you be more profitable in your homebuilding business? This is the million-dollar question we have been studying here at Constructech for years—ever since the industry collectively called it AHT (automated home technology). Much has changed and much has stayed the same in the past decade, but there are key trends homebuilders should keep a close eye on.
For one, it is important to note that some growth is still imminent. Next Move Strategy Consulting suggests the global home automation market was valued at $103.34 billion in 2023 and is predicted to reach $210.53 billion by 2030. This is a growth rate of 10.7% between 2024 and 2030.
Trends Builders Should Watch
Earlier this year, real-estate company Raleigh Realty points to a few key trends to watch in 2024 including: advanced home security, sustainable living, voice and gesture control, health monitoring, AI (artificial intelligence)-driven personalization, smart appliances and robotics, and quiet appliances.
A general trend here is we see the rise of home technologies can drive convenience, security, and overall improvement in our lives and our environment. Quite simply, these devices can serve a purpose in the home.
Deloitte echoes this sentiment, suggesting security reigns king among smart-home users. Looking at the smart home devices that at least two-thirds of owners consider essential, all of them relate to security and empower homeowners to monitor and protect their environments. Second, homeowners want remote monitoring capabilities, such as being able to adjust settings or receive realtime notifications about their home. Third and fourth priorities include saving time and increasing comfort.
At the end of the day, most areas of our lives are becoming more connected, why not our home? Two-thirds of consumers say they want a connected home, according to NAHB (National Assn. of Home Builders). But it still leaves the question: How can builders capitalize on it?
How Builders Can Capitalize
While there are certainly consumers who want greater connectivity in the home and big opportunities for leveraging such technologies in new home builds or renovation projects, what steps should builders take to ensure success? Let’s walk through a few today.
Understand your client. Always consider the needs of the homeowner first. What are they asking for? What do they want? What do they need? For production builders, this might be asking these questions for the general market and “typical” customer type. For custom builders, this might be asking very specific questions to each individual homeowner. Either way, make sure you are asking them and understanding what exactly they want in the homes. Always start there.
Do your research. What technology solutions exist to meet those needs of your customer? Maybe they want greater security in the home. How can technology solve that problem for them? What types of solutions exist? Likely there will be more than one option for customers. Homebuilders that have done some of the upfront research will be able to stand out among the competition.
Find good partners. NAHB member Stephen Embry, a partner with the law firm of Frost Brown Todd in Lexington, Ky., suggests using superior quality products from reputable vendors, checking every vendor’s insurance, and don’t assume financial capability just because they are well known. Also, vet installers carefully and have information on the risks and what the homeowner should know.
Do you have a home-automation product you would like homebuilders to consider as they are building new structures or renovating existing ones? Although we have been talking residential in this blog, we even have a place for commercial construction entries. Make sure to submit all your entries in our annual Constructech Top Products awards. The ballot is open now and the deadline is fast approaching.
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