More home builders installing home networks as standard

March 18, 2020
According to a Parks Associates study of U.S. home and multifamily builders that sell or install smart home technology, the most common technology strategy among large-scale ...

According to a Parks Associates study of U.S. home and multifamily builders that sell or install smart home technology, the most common technology strategy among large-scale single-family builders (LSBs) is to install a whole-home WiFi network. The research house says 35% of surveyed LSBs provide the networking infrastructure to provide a "smart home-ready home" for their customers. Twenty-nine percent of LSBs install an interactive security system, which remains popular among builders.

The research indicates that a majority of LSBs surveyed install WiFi routers as a standard feature, while one-third install smart speakers with voice assistants as standard.

"All builders report smart home technology is highly popular with consumers, and connected products are rapidly replacing non-connected models as standard in the home," said Brad Russell, research director, Connected Home, Parks Associates. "Additionally, new consumer experiences, such as the current impact of COVID-19 on working at home and the need to monitor loved ones, will increase the value proposition of smart home tech among consumers. And while the coronavirus can't be filtered by an HVAC system, people are thinking more about indoor air quality (IAQ) and how to create and maintain a healthy environment for their loved ones."

The majority of large-scale single-family home builders surveyed offer smart home technology to increase the appeal of the house and not to add to the sales price. Smart lights, thermostats, door locks, and garage door openers are typically offered as standard, while smart appliances and smart water devices are usually offered as upgrades.

"Low price points put Amazon and Google in a good position to expand further in the builder market as a control interface," Russell said. "The low price points of their smart speaker products give builders an economical means to integrate these smart technologies as standard in their homes to boost their value among home buyers."