Connected Lock Sales Go South — In a Good Way
A new survey reveals which region of the U.S. is most likely to purchase smart locks and posits the reasons why.
Over the past few years, we’ve looked at infographics that examined connected locks sales from a variety of perspectives: by gender, by marital status, by number of people in the household, by age groups, and much more.
It was inevitable that we would finally get around to examining the regions of the country. In other words, who buys more connected locks: consumers from the Northeast, South, Midwest, or West?
As usual, this new infographic was based on a random sample of 288 respondents to a survey from TraQline, a company enlisted by leading residential lock manufacturer Kwikset to track purchasing habits and patterns. The survey reports results for the four quarters ending March 2021.
The answer turned out to be a relatively obvious one: our neighbors to the South bought up almost half of all connected locks (48.2%) sold in the country during the survey time period.
In fact, it wasn’t even a contest: consumers in the South bought connected locks at a rate more than double the sales in the Midwest and West and more than FOUR TIMES the Northeast. If this were a horse race, the South would have won by 20 lengths.
As always, after we present the data, we try to answer the pressing question of “why.” Clearly, smart locks sales overall have been healthy. The pandemic did put a dent into smart lock sales overall. But despite that bump in the road the global smart lock market is projected to reach USD 3.71 billion by 2025, growing at a CAGR of 13.25% from 2017 to 2025.
But the ultimate answer might be surprisingly simple. A study was conducted for Home Improvement Research Institute by analyst firm Decision Analyst. The study was conducted online from Sept. 10 to Sept. 17, 2020 and included 809 respondents who had purchased a new or existing home within the previous 12 months (Sept. 2019 – Sept. 2020).
Almost half (43%) respondents were from the South. Out of that number, 49% bought new homes, while 42% purchased existing homes. With new houses come new locks; in addition, consumers who purchase existing homes often elect to change their locks.
More supporting data comes from the National Association of Realtors (NAR). Total existing-home sales (includes single-family homes, townhomes, condos, and co-ops) increased 2.4% from July 2020 to a seasonally adjusted rate of 6 million in August 2020 and year-over-year sales up 10.5%.
Single-family home sales increased 1.7% to a seasonally-adjusted annual rate of 5.37 million compared to 5.28 million in July and increased 11% from one year ago.
But the real meat of the material comes from here: The South increased 0.8% to an annual rate of 2.6 million, up 13.0% from a year ago, which represents the highest percentage increase from the year before.
Sometimes you have to dig deep for the answers to why connected sales are made. When it comes to purchases by region of the country, however, it’s appears to be just a matter of numbers. Far more homes bought, far more locks sold.
Art Sesnovich is a principal and co-founder of Bulldog Communications.
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