Millennials are known for having very specific interests. They also hold a significant level of buying power in certain markets, particularly technology and renting. Understanding the way that millennials react to certain tech trends will give a hint into the future of technology.
Right now, they are interested in smart home technology.
Real Estate Studies Point to Smart Home Tech
It’s not really a surprise that millennials want smart home technology, but a recent survey conducted by Wakefield Research has confirmed it. Their findings showed that 86 percent of millennials are willing to pay more for a home or rental property if it has smart home technology.
In fact, millennials are willing to pay an average of 20 percent more a month in order to secure a home with smart technology. They like electronic access, keyless locks, interconnected doorbells, mobile-controlled security systems, voice-activated assistants, and so much more.
Wakefield Research also asked baby boomers to share their thoughts on smart homes. This group of 65+ citizens was the largest generation in the United States for decades, and they’ve long held the most buying power, especially with major purchases like real estate. About 65 percent of baby boomers said that they would pay more for smart tech in their homes. It’s significantly less than 86 percent, but still a good chunk of the home buying and selling population.
Millennials and Their Smart Tech Storm the Market
Millennials, or those born between 1981 and 1997, have now surpassed baby boomers as the largest living population. As baby boomers leave the workforce and pass away, they leave the buying power to millennials.
Smart technology has made a huge debut thanks to millennial influence. In 2016, more than 80 million smart home devices were purchased, a 64 percent increase from the previous year. One in every four millennials already has at least one smart home device installed.
It’s also expected that millennials will become prominent players in real estate sales in the next 10 years. At this time, they’ll be looking to settle down and have families, which will encourage more home purchases. Home sellers who install smart tech now can take advantage of millennials’ willingness to spend more on a home. It adds instant value.
Millennials are spurring on a technological revolution, and we’re going to see a huge change in technology and real estate as a result.
Smart Home Technology Trends to Watch
As we finish out 2017 and start looking towards the new year, watch for the latest technological trends. Among millennials, smart home tech is the order of the day. The projection of smart home revenue for 2017 is projected at about $14.649 billion.
But, just because a product can be hooked up to the internet, doesn’t mean it should be or that it’s worth the money.
"The consumers today are incredibly confused as to what's the value that they're getting,” says Blake Kozak of IHS Markit in a CNBC interview. “A consumer could be spending upwards of $1,000 if they go to the retail market and they don't understand what's the value. Are they getting energy savings? Is it simply fun and they're not going to want to use it in a couple weeks' time?"
If you watch the current smart home trends to get an idea of where the market will be and what’s most popular, you won’t be confused like many consumers. Here’s what the millennial generation is demanding now.
Energy consumption is a pretty big deal among the millennial generation; it helps conserve the environment and you can save money from it. Ecobee and Nest, which are among the most popular smart thermostats on the market, claim to save you between 12 and 23 percent on utility costs. They allow you to program your heating or cooling so that you don’t forget to turn them off when you leave.
Smart Watering Systems
Another great way to conserve resources and save money is with smart watering systems. Most can be run from a smartphone, so you can deactivate your watering system from work if it rains. These systems can also be configured to use just the right amount of water for the type of grass and size of lawn you have, so you don’t overwater any parts and waste precious resources.
Smart Doors and Locks
Doors can be remotely controlled for greater security. Dwellers won’t have to worry about forgetting their keys, and smart tech is more difficult to break into than keyed entry. You can monitor house and garage entrances from anywhere and enjoy the convenience of controlling it from your preferred device.
Smart technology is only just beginning. By 2020, we’re expecting an increase of smart home adoption in billions of dollars worth of products. Those who are interested in tech and its impact on our daily lives would do well to keep an eye on these smart tech options.
Edited by Mandi Nowitz