Installed Home Technology Boosts Home Builders’ Bottom Line, Says CTA

Consumer Technology Association’s 14th Annual State of the Builder Technology Market Study finds that home technology installations are helping builders recover from the recession.

ARLINGTON, Va. – One-third of U.S. home builders (36%) say they have experienced revenue increases due to home technology installations, according to the Consumer Technology Association’s 14th Annual State of the Builder Technology Market Study. Since 2009, the number of builders reporting revenue increases rose more than 10 percentage points, demonstrating that installed home technology has helped the home builder industry bounce back from the recession.

“As more consumers are living digital lives, home technology has helped builders’ bottom line,” says Chris Ely, senior manager, industry analysis, Consumer Technology Association. “And as the economy improves, builders are deepening and diversifying their home tech offerings and finding more revenue opportunities as a result. To expand their gains, builders should continue to market the benefits of smart home technology to generate buyer interest and increase revenue potential.”


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With almost 90% of new homes having a broadband connection, half of new construction – particularly family, luxury homes, and apartments/condos – have dedicated home offices. Small builders (61%) and custom builders (65%) are most likely to install dedicated home offices as are builders in the Mid-Atlantic (60%) and Midwest (62%).

“Although consumers have limited dollars, the steady trend toward the majority of new homes having a dedicated home office suggests more Americans desire a dedicated workspace at home, potentially due to the rise in telecommuting,” Ely says. “This is an area of opportunity where builders, suppliers and sub-contractors can partner to promote smart home technologies to consumers before construction starts.”

Other key findings from the study include:

  • Among new homes, structured wiring (48%), monitored security (29%) and home theater systems (or pre-wire; 17%) remain the most popular installed home technologies in new home construction. In addition, several key technologies saw gains in new home installations last year, including: stand-alone video surveillance system (nine percentage points), home automation (eight percentage points) and energy management systems (six percentage points).
  • Given the widespread ownership of smartphones and tablets, builders report more than two-thirds of homeowners want to control their smart home remotely; either with a touchscreen (64%) or an app on a mobile device (64%).
  • Builders increasingly cite buyer/architect specifications and the need to remain competitive as top reasons to install home technologies. Profit potential is also a key factor.
  • The number one way builders find installation contractors is through referrals (83%) such as architects, real estate agents and other builders.

The 14th Annual State of Builder Technology Market Study was designed and formulated by CTA Market Research, a provider of comprehensive sales data, forecasts, consumer research and historical trends for the consumer technology industry. The complete report is free to CTA member companies here. Non-members can purchase the report here.

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