In 2020 alone, 4-in-10 Americans considered implementing smart home tech and over 60% wanted to expand their current setup. Smart homes are the hottest trend in the real estate market; the ever-increasing demand for these products has research predicting that smart device orders will double in the next four years. Especially with people spending a lot of time inside, they are looking to invest more into their homes. In the last decade, the adoption of smart homes in the United States has been extremely widespread with more than 70% of households having some type of advanced home tech.
What is a Smart Home?
Smart home: any type of residence that implements technological devices that allow homeowners to control appliances or devices remotely via smartphone/internet connection.
The advantages of smart homes far outweigh any other option—integrated automation of your home provides more security, flexibility, convenience, and functionality. Smart home features connected technology that can seamlessly be controlled by a touch from your smartphone. In modern-day society, the internet can be used to automate various home features including but not limited to:
- Air filtration
How Smart Homes are Shaping the Real Estate Market
In such a tech-centered society, people are moving away from traditional home amenities and are for an upgrade. A survey done by Coldwell Banker & T3 Sixty shows that 82% of real estate agents believe that smart home tech facilitates a home sale. This survey also revealed that 78.8% of agents and brokers believe that buyers are open to paying more for smart homes. Smart homes are embraced by buyers, sellers, and brokers as advanced technology can push a home’s value and lead to quicker closing.
Investors are taking advantage of smart home technology because they see how valuable it is in attracting renters/buyers. The global home market is estimated to advance at a compound annual growth rate of 21% from 2019-2025. This forecast shows that smart properties are not a fad in the market, rather, they are the beginning of standard expectations.
Who is Embracing the Smart Home Trend?
Although newer technology is generally adopted by younger generations, older groups are not shying away from this trend. Just like Millennials and Gen Z, older demographics of homeowners and buyers are embracing smart home products. The intuitive setup of most devices allows anyone with a smartphone to take advantage of the convenience and connectivity it offers.
Benefits of a Smart Home
Smart devices may require homeowners to spend more, but the return on investment makes it well worth it. Smart tech will save you time, money, and energy. Smart thermostats and their ability to adjust temperature settings can slash utility bills by 23% annually. Smart devices are generally easy to install compared to traditional gear, saving homeowners on installation costs. Some insurance firms even offer discounts on homeowner insurance to those who utilize qualifying smart home devices.
Not only does smart home tech make life exponentially more convenient, but it also has the power to improve health. Advanced air and water filtration vents are rising to be one of the most popular smart home devices. This type of technology is cost-effective, purifies, and even notifies smartphones about your home’s air/water quality.
Last but not least, the most popular benefit of a smart home is family safety. Most homeowners will list security as their number one priority, and smart devices provide the perfect solution. The available smart security technology seems endless. Smart home devices protect your home and belongings against fire, water, and smoke damage. Certain video monitoring devices also use motion detection to keep an eye on who enters and leaves your property. Most importantly, there are a variety of smart locks that use advanced technology to keep your home safe. Even just having one smart home device can exponentially make your home much more secure.
Popular Smart Devices With Every Demographic
The different age groups tend to lean towards different gadgets. However, these are the collection of smart home devices that are enjoyed by every demographic: smart locks, security cameras, smart hubs, thermostats, and adjustable lighting. A voice-controlled smart hub, like Amazon’s Echo Show and Google’s Nest Hub, is one of the best-selling smart home devices because it acts as a home automation system that seamlessly centralizes smart device controls. As mentioned, smart tech like keyless locks and video monitoring devices have become the norm. All demographics enjoy the benefits of smart security and peace of mind.
Smart Homes in Short-Term Rental Markets and Multifamily Complexes
The real estate industry is rapidly making the shift towards smart home technology. Smart systems have gained considerable traction with this industry through a specific smart device: connected locks. These smart locks prove to be perfect for short-term rental markets, like Airbnb, as it allows for remote access and can give guests revocable access. Such devices give these temporary guests a passcode that can be changed by the homeowner once another guest checks in. Short-term rental is projected to surge in multifamily complexes and, as a result, the use of smart locks.
Smart locks, like TownSteel’s e-Genius, provide a keyless solution that provides a more simplistic and secure method of entry and exit. Its electronic access controls connect locks throughout the building including shared-access rooms and different residences. Especially in multifamily complexes with younger residents, such as dorms, smart locks will be undeniably essential. The younger generation of renters prefers smart locks that can be unlocked by the swipe of a card or through their phones. The multifamily market needs to adapt to the changing demands of this new generation of renters.
The market and consumers are undeniably making a shift towards smart homes. The inevitable evolution of technology calls for innovative devices that will make your life easier. Real estate investors and homeowners, all take advantage of the conveniences that these devices provide. These technological advancements are just the beginning of making a more comfortable, secure, and improved personal residence.