How Smart Home Technology is Changing the Real Estate Landscape

Grant Clauser elaborates on the trend that is sweeping homes throughout the nation.

When someone uses the term “smart home” to discuss the technology behind their living space, there’s still a lot of confusion surrounding what exactly it entails. But as the trend continues to pick up speed in homes across the country, it’s becoming increasingly clear that smart homes are no longer limited to movies.

ESTATENVY spoke to Grant Clauser, a home technology expert and one of the voices behind the New York Times’ “The Wirecutter,” to learn more about smart home technology that’s becoming more common. And according to Clauser, if the past 10 to 15 years have been any indication, this trend is just getting started.

“Smart home and home automation technology has been in development during the last 30 or more years,” Clauser said. “It just wasn’t as common back then—or even as recent as 10 to 15 years ago—because it was only being professionally installed for tens of thousands of dollars.”

Clauser notes that in order for a home to be labeled a smart home, it has to have a certain number of gadgets that automate living, as defined by the Consumer Technology Association.

“Essentially, a home can be fully outfitted for automation, which again is going to cost the buyer a significant amount of money,” said Clauser. “Or owners and new builders can outfit certain aspects of their homes for much less and still have their home be a smart home.”

Something else to consider relating to home automation is that gadgets that are used for home automation are not necessarily permanent to one home. Clauser says that while any home owner can implement a gadget, if they move, they can still bring the gadgets they implemented to their new home.

So what type of impact is that having on the home-buying market? According to an August 2016 report released by Coldwell Banker LLC, more and more home-buyers are looking for their homes to be automated, or at least have the ability to be automated.

“I believe the trend these days among new home buyers—especially those in their early to late thirties—are looking to have their homes be automated,” Clauser said. “This group and younger generations are growing up with technology in their hands and will continue to look for ways to incorporate it in their day to day lives.”

According to the report from Coldwell Banker, more than half of people in the U.S. would opt to purchase a tech-ready home over one without any smart home advancements. That shows that it’s not just millennials who are interested in smart home technology—there’s also interest across Generation X and the Baby Boomers.

Smart home technology is certainly making a statement in the real estate market, with new advancements making themselves available to home buyers and builders at rapid rates. That means buyers and sellers—along with their realtors—can expect to see the industry shift towards smart homes in the months and years to come.