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Smart Home

Builders Embracing Tech in New Home Builds

The single-family builder channel has really warmed to the installation of smart home technology as standard, in addition to offering options as upgrades. Drivers include:

  • Increasing consumer demand for smart tech on par with other traditional new home features. In a Builder Study by Parks Associates, 80% of large-scale builders rated smart speakers as highly popular and 72% rated integrated smart home control and entertainment systems as highly popular. This compares to 84% who rated hardwood flooring and 70% that rated built-in shelving as highly popular.
  • Builders seek to increase perceived value of new homes, drive higher sales prices, and differentiate from competition.
The single-family builder channel sets the bar for the leading edge of new home design and features. Though scale is with existing homes, the builder channel can help manufacturers introduce new home buyers to use cases and experiences enabled by smart home tech.
The builder channel opportunity is greatest for smart thermostats, smart lighting, smart door locks, and smart speakers to control them. Security systems remain popular with about a third of builders. When builders buy devices to include in basic specifications, that creates value as a builder channel, distinct from low voltage integrators or contractors as channels. Manufacturers and service providers need a multichannel strategy that understands the role of builders, integrators and contractors in the various buying scenarios.
The growth outlook is strong as builders foresee increasing consumer demand, hardware price declines, and increasing reliability and simplicity of the user experience.  Beyond lights, locks, and thermostats, single family builders recently have shown increasing interest in indoor air quality and other health related use cases.
This is an excerpt from Parks Associates library of research. For information on our research studies and services, please visit We appreciate all comments on our research.
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