Technology Is Transforming the Real Estate Market
We bought our first home in late 1968. We watched it being built and even installed sound cables in the walls before they dry-walled, so we’d have a sound system for the whole home. Those days were called ‘container days.’ Contractors erected the container and left the homeowner to finish the rest.
Now, 45 years later, the sector is being upended by smart home technology, creating a large market opportunity for investors, entrepreneurs, designers, and builders. The smart home industry, which was estimated to be worth $79 billion in 2020, is expected to increase to $314 billion by 2027, according to recent research from Mordor Intelligence.
Consumer curiosity is being sparked by ideas like touchless interactions and energy-saving whole-home automation. With new government efficiency standards demanding the replacement or modification of current systems, automated heating and cooling will be in high demand. All residential central air-source heat pump systems sold in the United States starting in January 2023 must adhere to new minimum energy efficiency standards.
This smart home movement focuses on enhancing the experience of living in the home, from automating appliances that anticipate and comprehend the homeowner's demands to programming devices to act consistently. Grandview Research's forecast of an excellent 31% compound annual growth rate between 2021 and 2030 for smart kitchens and security and surveillance technology installations.
Consider PIN-activated keyless door locks or smart doorbells that are always aware of visitors (or deliveries) arriving. Automated exterior lighting and AI-powered public space video cameras that monitor neighborhood activity will be in demand for multi-family developments.
Because the smart home industry has developed over the last five years and is ready to transition from "do it yourself" to "do it for me," there is a huge market opportunity. Consumers will probably start looking for pre-built homes with tailored technology more frequently. According to a Coldwell Banker Real Estate survey, 61% of millennials and 59% of parents with children living in the home choose smart-tech homes, while 71% of purchasers desire a tech-enabled, "move-in ready" home.
New artificial intelligence (AI) technology that automatically changes ambience routines to meet resident patterns and preferences makes this possible. Thermal windows that conserve energy improve a house's overall efficiency. Each smart home's devices are programmed to cooperate with one another and connect to a centralized home management app that is very easy to use and administer. Such systems receive routine cloud updates, and all hardware is dispersed across the home's primary hub. Technology seamlessly merges into the building's simple interior design.
With most software solutions available via the cloud, second-generation AI-powered smart home equipment self-learns and adapts to routines and preferences, getting better over time. All devices are coordinated and synced in the smart home setup, and they are all made accessible via a computer or a smartphone. A smart home with a genius Intellect, perhaps.
Designers and builders must rethink household space in light of increasing urban density and environmental sustainability. Compared to older homes, the modern urban home uses space more effectively, is more flexible, and is more responsive. It is cozy and friendly. The COVID-19 pandemic had a significant influence that shouldn't be understated, since it confirmed long-held notions that the home can and should improve the health and wellbeing of its occupants.
A multi-family neighborhood outside of Portland's center dubbed HOMMA HAUS Mount Tabor, with 18 two-bedroom residences, is a pioneering prototype. This type of house must have an adaptable modern design, multi-functional use of space, and curated, pre-configured technology built in before the resident occupies the area. This sort of house should serve as the cornerstone of holistic well-being for its residents.
Urban areas that are expanding, like Portland, tend to have residents who value a deep relationship with environment and routinely engage in outdoor activities. Innovations like this one make use of organic-feeling materials that foster a sense of kinship with nature. The environment is improved by thoughtfully chosen oak flooring, Corian kitchen counters, and cedar fencing. Bamboo and tree landscaping produces shade and further reduces noise to keep the residences quiet.
Real estate will place more emphasis on striking a balance between protecting residents' privacy and fostering a sense of community. This is made possible by clever technology working in tandem with well-planned communal areas. Contemporary housing projects frequently contain courtyards that provide a good blend of quiet space and communal gathering area.
Urban living that is holistic and adaptable will be the industry's driving force as it develops. Modern architecture, design, and technology are blended into one product, the home, which is constructed to bring beauty, comfort, and wellbeing. Astute builders will do this. Investors, CEOs of large corporations, and startup founders should monitor these developments and be prepared to seize the opportunities they will bring about.