Smart Home Technology May Go Mainstream in 2016

Friday, February 5th, 2016

This year could be the tipping point where a majority of U.S. households adopt some form of “smart home” technology.

Real-estate brokerage Coldwell Banker recently released its Smart Home Marketplace Survey, which polled more than 4,000 Americans on their use of smart home technology. The researchers found that almost half (45 percent) say they own this kind of technology or plan to invest in it this year.

One driver of smart home tech adoption is how it may affect the selling price of a home. More than half of respondents (54 percent) said they would install smart home products if they were selling their home and knew that the devices and systems would help them sell the home faster. Those saying they would purchase smart home technology to help the sale said they would be willing to pay $1,500 or more.

So what determines whether a home is smart? According to the survey, most Americans believe a home needs to have a smart security system controlling locks and alarms; a smart temperature control system for thermostats and fans; a smart lighting control system; and a smart safety system with control of fire and carbon monoxide detectors and nightlights.

Three-quarters of Americans say that just having one of these categories isn’t enough to make a home smart. Sixty percent say that for a home to be smart, it needs to have at least three categories of smart products.

Here are some other findings from the survey:

  • Millennials make up 43 percent of Americans with smart home products. In the 35-54 age group, 33 percent have smart home tech. Of those 55 and older, 24 percent own smart home products.
  • Of those who do not have smart home technology, 27 percent said they will adopt it in 2016.
  • Seventy percent of Americans with smart home technology said buying their first smart home product encouraged them to buy another one.
  • The most popular smart home technology is related to entertainment, such as smart TVs and sound systems– 44 percent of people using smart home technology have a smart entertainment product.
  • After entertainment, the next most popular smart home technology includes smart security systems (31 percent) and smart temperature control systems (30 percent).
  • For Americans buying a home, smart security systems (58 percent) and temperature systems (56 percent) would be the most appealing form of pre-installed smart home technology