Smart home features are becoming more and more common in U.S. households. While the needs of each home vary, residential tech automation can involve energy management, digital security, app-controlled entertainment, lighting, climate control, smart appliances, and various AI (artificial intelligence) hubs and gadgets. According to a 2019 report by Statista, one-third of all homes in the United States use some form of smart home technology, and it is predicted that over half will have it by 2023. What does this mean for new home builders? Will they be competing with tech companies for business? The structural home builder warranty experts at PWSC take a deep dive into the evolving requisites of residential developers and explain how they can stay ahead of the smart home wave and protect their profits by incorporating risk management solutions.
The Impact of Technology on New Home Construction
The impact of technology on new home construction is two-fold. Advancements in tech are happening everywhere, and many involve solutions for operating a business more efficiently. But that’s only half of it. The Internet of Things (IoT) is gaining traction, and businesses (including those in the building and construction industry) will need to keep up in order to stay afloat in the next few decades. In addition to embracing digital innovation and utilizing new technologies to run a company, new home builders are also having to consider including the option of smart home upgrades in their home designs. While some homeowners opt to install automated tech into their homes after purchasing a property, certain smart home amenities are now considered to be turn-key requirements.
The Future of Residential Development
Some home builders who provide customizable packages to buyers are now offering smart home upgrade options as well. Automated tech is emerging as an integral component of the construction market, and it appears that the future of residential development will be intertwined with the smart home industry.
The most in-demand smart home amenities of 2019 include:
- App-controlled video surveillance
- Digital doorbells and home locking systems
- Outdoor irrigation control
- AI thermostats
- Automated window coverings and garage doors
- Voice-controlled entertainment systems
- App-controlled outlet plugs
- Automated lighting
- Wireless charging
- Universal remotes
- Smart appliances
According to Bloomberg columnists, Sam Kim and Kyunghee Park, some tech companies, such as Samsung, are in talks of building smart homes themselves. However, it appears that plans have not gone further than a conceptual phase. While large tech companies may compete with new construction home builders in the future, the current trend is a partnership between the two.
Joe Bousquin of BUILDER Online explains that more and more residential developers are working with tech giants (such as Apple, Google, Amazon, and Xfinity) to offer buyers the option of smart technology in their homes. He adds that “the best partners will meet with your buyers to discuss the technology” while providing home builders with the support they need to increase profit. Developers don’t necessarily need to implement automated features in every home they build. Instead, they can offer buyers the option to customize their homes with various smart home upgrades. The home automation and IoT market is rooted in making people’s day-to-day lives easier and more efficient. Therefore, those who want smart tech in their homes are likely to appreciate the option of pre-installed features.
How Builders Can Stay Ahead of the Game & Protect Their Bottom Line
Just a few years ago, smart home upgrades weren’t on the top of many home buyers’ lists of must-haves, and offering them was more expensive than it is today. However, as the smart home industry picks up speed, expectations are quickly shifting in the competitive landscape of home building. According to Forbes Technology Council, “a collaboration between builders and tech companies seems to be brewing.” So, how can new home builders stay ahead of the smart home game while protecting their bottom line? In addition to partnering with a tech company to offer buyers the option of upgrading with smart tech, residential builders can implement risk management solutions.
Builder structural warranties provide buyers with confidence in their investment. Similarly, residential developers can work with tech companies to offer not only smart upgrades, but also warranty protection and included in-home tech support for the automated systems installed throughout the property. Professional Warranty Service Corporation works with builders to provide new home builder warranties and other construction risk management solutions. Developers who partner with tech firms can reduce their risk and boost sales with PWSC’s litigation avoidance programs, regulatory monitoring, claims resolution, and homeowner loyalty plans . Contact a home builder warranty expert to learn more about risk management.