consumer demand leading smart home trends – Contracting Business

The market for smart home technology that was about $24 billion in 2016 is anticipated to reach $53 billion by 2022. Smart homes are moving past the early-adopter stage and through the acceptance and demand stages quickly. With this in mind, forward-thinking builders and contractors might consider offering a wide-range of these features in new residential construction projects.

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So, what exactly is creating the demand for smart home technology?

Acceptance of the Technology
Initially, there may have been some reluctance to accept smart technology in homes. This reluctance may have been rooted in concerns about reliability, perceived need, security, and ease of use. In a few short years, however, most of these issues have been addressed and more benefits to the technology have been realized. Artificial Intelligence (AI) assistants like Siri and Alexa have exploded in popularity and have been accepted into millions of homes. Many consumers have come to not only accept the help of these devices but have come to rely upon them.

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WiFi has enabled smart phones to do so much more to control home systems.

Millennials Entering Housing Market
Slow to embrace homeownership, mainly due to a challenging economy and other unique circumstances, the largest segment of the population on the planet is moving into real estate in increasing numbers. While U.S. Census Bureau statistics show that home ownership by Millennials is still relatively small at 36%, according to Bloomberg, its growth from 34.7% a year earlier was higher than any other age group between 2016-2017. This is a generation who grew up with technology and the convenience and connectivity it provides. While their predecessors may have sought out open floor plans, garden tubs, and granite countertops, smart technology is potentially more important to this younger generation of home buyers.

Demand for “Green” Features
Because smart technology can save energy on heating, cooling and lighting and can even save water through smart irrigation, it is viewed as a valuable environmentally-friendly feature of a home. Millennials aren’t the only generation that values green brands and products, but their increasing involvement in real estate is certainly having an impact in this regard.

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