expressed opinion entrepreneur Contributors are themselves.
Since the 1960s, real estate development and construction have changed: Contractors typically build the containers and let homeowners fill the rest. However, smart home technology is disrupting the industry, presenting a significant market opportunity for designers, builders, entrepreneurs and investors.Recent research from Mordor Intelligence It is predicted that the smart home market will be worth US$79.13 billion in 2020 and is expected to grow to US$313.95 billion by 2027.
As a result, I’d like to see an increase in the term “smart home automation” — referring to internet-connected devices that monitor and control basic home functions like lights, cameras, locks, and climate. As the industry transforms, it presents excellent opportunities for entrepreneurs, businesses and investors.
Touchless interaction and whole-home automation that increase efficiency and save energy are among the concepts driving consumer interest. Automatic heating and cooling is in high demand and new government efficiency regulations require existing systems to be replaced or retrofitted. In January 2023, all residential central air-source heat pump systems sold in the United States must meet new minimum energy efficiency standards.
This trend is about improving the home experience—from programmed devices that always behave the same to automated devices that predict and understand homeowner needs. as evidence, Grandview Research Grandview forecasts an impressive 30.5% compound annual growth rate for smart kitchens from 2021 to 2030. Grandview also forecasts a 31 percent increase in security and surveillance technology installations.
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Think keyless door locks that use a PIN code or a connected doorbell that always knows when guests (or deliveries) arrive. For multi-family developments, AI-powered public space cameras to track what’s happening around the neighborhood and automated exterior lighting are needed.
I see a significant market opportunity as the smart home market has matured over the past five years and is poised to move from “do it yourself” to “do it for me”. Buyers are likely to increasingly look for prefab homes with select technologies. According to a Coldwell Banker Real Estate survey, 71% of homebuyers want a tech-enabled “ready-to-move-in” home, while 61% of millennials favor smart tech homes; 59% of those with kids Parents also live in the house.
Making this a reality is new artificial intelligence (AI) technology that learns residents’ patterns and preferences, then intuitively sets ambience routines to match. Energy efficient insulated windows increase home efficiency. Every smart device in every home is designed to work in harmony with each other, connected to a centralized home management app that’s easy to manage and easy to use. Such systems are regularly updated via the cloud, with all hardware randomly placed in a central hub in the home. Technology is fully integrated into the structure and into the minimalist interior design.
Second-generation, AI-driven smart home technology learns by itself, adapting to everyday life and preferences; for most software solutions delivered via the cloud, it improves over time. In an ideal smart home setup, all devices are synced and coordinated and can be accessed via a smartphone or computer. Call it a smart home with a genius IQ.
Related: 5 ways artificial intelligence technology is making our buildings smarter
urban density
Growing urban density and awareness of environmental sustainability require designers and builders to think about domestic spaces in new ways. The new urban home is comfortable and welcoming while using space with greater efficiency, flexibility and responsiveness than homes of the past. Not to be underestimated is the impact of the COVID-19 pandemic, which has underscored long-held beliefs that families can and should contribute to the health of their residents.
This purpose-built home is intended to be the foundation of the overall well-being of its residents – must include versatile contemporary design, versatile use of space, and carefully planned pre-configured technology built in prior to residents’ occupancy.
A good example of this trend is Portland, Oregon. The Portland market is attractive to both builders and investors: the city is a rapidly growing urban center that requires high-density housing solutions beyond traditional detached single-family homes. Urban dwellers are proactive, seek a balanced lifestyle, and welcome innovations that challenge the status quo.
Urban Real Estate Trends
Real estate trends point to modern design, open floor plans that offer adaptability. Large windows and courtyard views help residents feel at one with nature in their homes. A skylight in the stairwell adds natural light. Built-in storage under the stairs for shoes and other items keeps clutter to a minimum; exterior storage next to the second-floor patio keeps bulky or seasonal items out of the living space. Community bike storage in the building is convenient and frees up extra space in the home. There is efficient placement of lights and sensors. A nondescript, out-of-sight cabinet houses all the technical hardware.
Residents of growing urban centers like Portland typically value a close connection with nature and regularly participate in outdoor activities. Developments such as these utilize materials with an organic feel, creating a sense of connection with nature. Carefully selected oak floors, Corian kitchen countertops and cedar fencing enhance the setting. Landscaping with bamboo and trees provides shade and further dampens sound to keep the interior quiet.
Real estate will focus more on striking a balance between resident privacy and creating connections among community members. Smart technology combined with well-designed public spaces makes this possible. Modern developments often feature courtyards, a balance between quiet spaces and spaces for community members to gather.
As the real estate industry evolves, holistic and adaptable urban living will drive the industry forward. Savvy builders combine modern design, architecture and technology into homes that offer products that are combined into one product – the home – designed to provide beauty, comfort and wellness. Startup founders, business executives, and investors should pay close attention to these trends and be ready to capitalize on the opportunities they create.
