ibs wrap up - digital
TRANSCRIPT
Special Report Series
techomebuilder.com
Emerging Tech TrendsWRAP UP
Builders – selling smart home technology can be frustrating.
The GE Home Technologies Builder Program – has nailed down a process that provides builders with a turn-key home technology system designed to boost new home construction sales!
• Proven technology sales force, trained to sell and support your sales team• The most recognized home electronic brands – asked for by home buyers• Comprehensive model home program for builders• Significantly increased profits per rooftop sales• Consistent simple design solutions that fit
your home buyer needs• No more multiple/outside contractors• FREE one hour setup, training and support
for your home buyers• 85,000+ home technology
installations in 2014 GEhometechnologies.com
GE Home Technologies is looking for a select group of builders to partner with one of the world’s most recognizable brands. If you’re ready to add the selling power of GEHT to your bottom line—let’s talk today.
ContentsIntroduction
Best of IBSBoutique Builder Profile: MBK Homes
Building Bliss with Blue Heron Homes
Multiplying Money in Multifamily
Are We Ready for Renewables?
Dipping Your Toes Into Tech
Conclusion
2015 to 2020: Connecting Our Homes to the Internet of Things
4
6
10
12
14
16
19
26
22
Builders – selling smart home technology can be frustrating.
The GE Home Technologies Builder Program – has nailed down a process that provides builders with a turn-key home technology system designed to boost new home construction sales!
• Proven technology sales force, trained to sell and support your sales team• The most recognized home electronic brands – asked for by home buyers• Comprehensive model home program for builders• Significantly increased profits per rooftop sales• Consistent simple design solutions that fit
your home buyer needs• No more multiple/outside contractors• FREE one hour setup, training and support
for your home buyers• 85,000+ home technology
installations in 2014 GEhometechnologies.com
GE Home Technologies is looking for a select group of builders to partner with one of the world’s most recognizable brands. If you’re ready to add the selling power of GEHT to your bottom line—let’s talk today.
The 2015 International Builders’ Show (IBS), hosted by the National Association of Home Builders (NAHB), was a home technology feast for the eyes and ears. Many attended the feast too—55,237, in fact. This 8 percent increase over last year resulted in 478,000 square feet of bustling housing industry professionals eager to learn about must-see products and exhibits. And there was plenty to look at, with more than 1,200 exhibitors.
“I thought this year was above average, and very informative,” says homebuilder John Benton of Middle Road Ventures in Tempe, Ariz.
Of course those responsible for organizing this behemoth of a show would agree.
“This has been the best show we have experienced since the economic downturn,” says Jerry Konter, chair of the NAHB Convention and Meetings Committee in a press release. “You felt a great energy the moment you hit the show floor, as builders and exhibitors continued to benefit from the recovering economy.”
“First impressions, particularly involving your products, are so vital to establishing a connection with your buyers,” says Chad Williams of Pepper Viner Homes.
Introduction
4 TecHome Builder Special Report: IBS Wrap Up – Emerging Tech Trends
One such builder was Chad Williams, chief operating officer of Pepper Viner Homes. “Housing trends are improving, but we’re still playing catch up,” he says.
During the sessions, industry experts talked about the growing Internet of Things (IoT), outdoor living, renewables, building high performance homes, design and technology trends for all generations, marketing and much more.
On the show floor, exhibitors fielded questions about technologies, such as Parjana’s energy-passive groundwater recharge product system, which manages storm water by recharging the groundwater through increased infiltration into the soil.
“Parjana seems very interesting to me,” Williams says. “We’re constantly striving to keep rainwater on the home’s property and their energy-passive groundwater recharge product is intriguing.”
“The exhibit halls were packed from end to end, and the energy on the show floor was amazing,” says newly elected NAHB Chairman Tom Woods, a homebuilder from Blue Springs, Mo.
“Design & Construction Week was truly a unique one-stop shopping extravaganza for all those involved in the residential construction industry, and this mega-event will be a great springboard for housing in the year ahead.”
5Visit www.techomebuilder.com
Best of IBS: Simple Tech Makes a Big Splash
Awards prove that technology is making headway in the building industry and that simplicity is an essential aspect.The 2015 Best of IBS Awards proved that technology is here to stay for builders, but ease of installation and cost are also big factors. The Best of IBS received 400 award entries submitted by nearly 200 exhibitors. A panel of judges comprised of reporters and building professionals selected the winners in eight categories plus the Best in Show award.
“It’s very aesthetically pleasing because we’ve built it directly into something that’s already in the home—the outlet cover plate,” Watkins adds. “There is no distraction from the home décor during the day. When darkness comes, however, it adds to the home décor by casting beautiful accent lighting so the homeowner can navigate around their home at night.”
The simple design and low price ($120 retail for a pack of 10 plates and 10 cents a year to run) has homebuilders keenly interested in installing low-cost ad-hoc technology in their homes. (Read the full story on SnapPower and other low-cost technologies on page 19.)
“I think the reason our product won is because we engineered and designed the Guidelight with both the builder and end consumer in mind. Builders like cost-effective, energy-efficient and attractive things.”
Best in Show: SnapRays Guidelight by SnapPowerInexpensive and simple: that’s what homebuilders and judges alike seem to appreciate about SnapRays Guidelight by SnapPower.
The simple nightlight was named Overall Best in Show, and Best Indoor Living Product after launching less than a year ago in a Kickstarter campaign. SnapPower co-founder Sean Watkins describes the light as a “plug-and-play” replacement for the standard plug-in nightlight and the hardwired guide lights found on the market today.
“I think the reason the Guidelight was chosen as best product at the show is because it really is a very simple, attractive solution to an everyday need,” Watkins says. “We wanted the Guidelight to be incredibly easy to install so that it was cost-effective for the builder as well as easy for consumers to move around the house as their needs change.”
The light is designed to replace the standard electrical outlet cover plate and requires no wires or batteries to work. It installs in minutes with a screwdriver. A light sensor automatically turns on and off the three small LEDs at the bottom edge.
6 TecHome Builder Special Report: IBS Wrap Up – Emerging Tech Trends
Best Home Technology Product: Big Ass Fan’s Haiku 52 with SenseMeBig Ass Fans won a big ass award at the International Builders’ Show Best of IBS.
Its smart ceiling fan, the Haiku 52 with SenseMe, won Best Home Technology Product. The SenseMe technology in the fan links it to the Nest thermostat, allowing homeowners to leave the thermostat higher in the summer while the air feels cooler.
Big Ass Fans was one of the founding members of the Thread Group, which works to promote the low-power, open source platform. Residential Sales Manager Margaret Schwartz accepted the award and says the fan’s temperature and humidity sensors allow it to adjust to the personal comfort of the occupants.
Most Innovative Building Product: One Touch Electric Stairway by Marwin
If you’re short (like many of us at TecHome Builder), just reaching the attic stairs can be a hassle and usually involves jumping up and down to reach the cord, getting out a small step ladder or getting someone taller to do it for you.
But no longer!
Marwin’s One Touch Attic Stairway allows even the smallest of us to access the attic at the touch of a button, unlatching the door panel and allowing the aviation-grade aluminum stair sections to slide down to the floor. The electronically controlled attic stairway has a 375 pound rating, an obstacle sensor that stops the stairway from lowering if an object is in the way and push-button access.
One Touch comes in three different ceiling height ranges: 8-10 feet, 10-12 feet and 12-14 feet. It also features ANSI 14.9-certified, 9-millimeter birch or lauan plywood, six handrails, and a quiet motor assembly.
CEO Andy Davis says the product “changes the way a homeowner can access a forgotten aspect of their home—the attic.
“With an aging population and discriminate consumer market looking to automate more household features, it is an attractive and useful product that has captured the attention of architects, builders and homeowners.”
7Visit www.techomebuilder.com
Best Kitchen Product: Bosch Benchmark Wall Oven by Bosch Home Appliances
The Bosch Benchmark Wall Oven makes an appearance in the New American Home (see page 12) as well as the awards podium. The oven has a side opening door option for better ergonomic access. The EcoChef function saves energy by using the residual heat of the oven capacity to complete the cooking process.
Judges liked the side-hung door, calling it functional and solid, and “great for anyone who is height challenged. Also makes it so much easier to remove that heavy turkey.”
Best Bath Product: Center Redi Trench by Tile Redi USA
Tile Redi’s Center Redi Trench for shower stalls features a one-piece, pre-pitched shower pan with an integrated curb, splash walls and a 2-inch PVC drain. A linear trench is molded into the product, and tiles can be set directly on the shower pan surface with no preparation needed.
Best Green Building Product: Pure Genius Smart Floor by Lauzon Distinctive Hardwood Flooring
Lauzon’s Pure Genius Smart Floor is a hardwood floor that breaks down volatile organic compounds (VOCs) with titanium dioxide in the finish. The air-purifying agent is activated by natural and artificial light, which causes toxic contaminants such as formaldehyde to break down on contact and transform into harmless molecules. The action can increase indoor air quality by up to 85 percent over time.
8 TecHome Builder Special Report: IBS Wrap Up – Emerging Tech Trends
Best Outdoor Living Product: Frost Free House Hydrant by Aquor Water Systems
It’s advertised as “One garden hose connector to rule them all.” The Frost Free House Hydrant by Aquor Water Systems is simple to install and replaces the standard outdoor faucet and the inconveniences that come with them: the difficulty of threading on a garden hose, the loss of water due to leaky faucets and frozen faucets.
Aquor Hydrants are constructed to withstand decades of use. Unlike standard brass faucets, Aquor Hydrants are cast from marine-grade 316 stainless steel, providing superior durability, rust resistance and freeze protection. The one-way valve in the outlet automatically starts water flow when the connector is inserted. When the hose is unplugged, the valve closes and provides a leak-proof seal.
You can swap out hoses and other accessories without turning off the water. The hydrant’s steel faceplate replaces the protruding spigot, and the friction-hinge cover will be available in multiple colors to match the home exterior.
It can be fitted to either copper or PEX piping and will be priced competitively with standard frost-free bibs. It’s a simple, durable solution that eliminates the frustrations that virtually every homeowner experiences with their outdoor faucets while also improving a home’s aesthetics.
Best Window and Door Product: Next Generation Ultimate Double Hung Window by Marvin Windows and Doors
This window is the first Marvin product not to rely on a traditional window lock; instead it has a “Keeperless Hardware System that controls all aspects of the window’s operation.”
The sweep operates all aspects by moving clockwise or counterclockwise at various positions. The two panes can operate independently and tilt for cleaning. The bottom sash can be locked open with four inches of clearance for ventilation.
“This new window is a great example of what Marvin does best—create a product that is beautifully designed and that answers our customers’ needs for functionality and performance,” says Christine Marvin, director of marketing at Marvin Windows and Doors.
“The competition for this year’s Best of IBS awards was fierce,” says Jerry Konter, NAHB’s 2014 Conventions and Meetings Committee Chair and a homebuilder from Savannah, Georgia. “The 2015 winners represent the best and most innovative products on the market, and we are pleased to be able to honor them today.”
Technology, simplicity and convenience won the day.
9Visit www.techomebuilder.com
A developer of for-sale single and multifamily housing communities, rental homes, apartment property acquisition and distressed asset renovation, MBK builds between 150 and 250 for-sale houses each year with its many architect and subcontractor partners and has about 400 rental units in some stage of construction.
Boutique Builder Profile: MBK Homes
Tapping new technologies and targeting customer expectations.“Builders will not install technology for technology’s sake. We will offer it when it fits the lifestyle priorities and expectations of our customers,” says Rick Fletcher, vice president of sales and marketing for MBK Homes based in Irvine, Calif. “If you’re building 10,000 homes a year, you can scale. As a boutique regional developer, we aim to specify who our buyer is. We don’t have the benefit of scale.”
Over the past two decades, MBK Homes has become an expert at targeting the best fit for its customers and has won multiple Eliant awards for quality service and customer satisfaction.
“Our mission is to provide top quality shelter to residents in California,” says Mike Schmidt, the company’s vice president of operations. “In Southern California especially, builders have had to be more innovative and more tech-savvy because of the scarcity and price of land, and MBK is no exception.”
10 TecHome Builder Special Report: IBS Wrap Up – Emerging Tech Trends
A specialist in urban infill developments among other locales, MBK Homes has taken the pulse of Gen Xers and Millennials and knows that different markets mean different technology options. “For transit-oriented customers, certain tech makes sense: electric vehicle and hybrid charging stations, bike stations, plasma TV outlets,” says Fletcher. “In some of our new communities, we’ve installed solar panels on top of car ports, and we pay close attention to common areas where people gather.”
Even the smallest, under-the-radar tech can make a big difference and have an end-user benefit, Fletcher says. “Noise pollution in multifamily housing is a problem, and one way we found to improve convenience is to install SOMMER silent garage door openers standard.”
When the customer wants the fully automated “smart home” experience, MBK is ready to comply. “We work with our integrator partners to install structured wiring so that people can go wireless or through a central hub … video, security, Nest, garage locks, keyless entry, audiovisual, smart tablets, wall screens, you name it,” says Schmidt.
A second MBK development—1600 at Artesia Square in Gardena, California—is a model of efficiency, earning LEED-Platinum and Energy Star certifications, and each unit includes its own photovoltaic system, tankless water heater and carbon monoxide sensors on each floor.
11Visit www.techomebuilder.com
At one of MBK’s newest infill communities—Sea House in Costa Mesa, Calif.—the interior spaces include Energy Star appliances, advanced wiring with RG6 and CAT5 cables for high-speed connections, multimedia flat-panel TVs, a USB charging station in each kitchen and electric vehicle conduits in each garage. Options include a flat-screen TV conduit on balconies and Nexia Home Intelligence automation for thermostat control and front-door locks.
Through its LifeWise program, MBK also provides energy-efficient tankless water heaters, low-flow toilets and faucets, fluorescent and LED lighting and drought-resistant landscaping.
“Technology is going to become more compulsory for builders in the next five years due to energy efficiency, building code requirements, stricter solar requirements by 2020, and even the rise of panelized homebuilding,” says Fletcher. “Many builders have been slow to respond to these trends, but there’s nowhere to go but up. It’ll be interesting to see how we use the new tech. It’s definitely going to be a priority for us.”
While enthusiastic about new and advancing technologies, Schmidt encourages a modicum of caution, thinking back to a decade ago when the marketing hype about widespread green home adoption did not quite match the reality of consumer demand.
“Back then, nearly 80 percent of homebuyers surveyed said they’d rather have granite countertops than solar power. Now granite is more or less standard, cheaper in some cases than tile. Costs will change in solar as well; prices will drop. But to succeed, we must be sure people want this tech and that they’re willing to pay for it.”
Either way, MBK Homes plans to evolve with the times to meet and exceed customer expectations in every project for years to come.
Building Bliss with Blue Heron Homes
Homebuilder uses technology, design-build approach to create luxury abodes.While Blue Heron may be a newer company, it has certainly made its mark in the luxury homebuilding industry. Using home technology and a design-build approach, Blue Heron is able to sell pre-designed custom homes and true custom homes for up to $7 million a pop.
If you attended IBS in 2009, 2013 or the most recent event held in Las Vegas, January 20 to 22, you may have toured the New American Home. While this is a souped-up version of what you would typically see in a Blue Heron Home, it gives you an idea of what to expect from Tyler Jones and his father, Steve.
“He taught me a lot about the whole business,” Jones says of his father. “To be able to bring his construction experience together with some of my ideas about design has been a really neat dynamic and business relationship.”
Founded in 2004, Blue Heron allows clients to choose from pre-designed custom homes, which have predetermined floor plans with tech add-ons. It’s like a custom home, but a lot less expensive at around $1 million. The true custom homes start at around $1.5 million, and start with a blank slate.
“We design something completely one-of-a-kind for the customer,” Jones says.
Jones says that communication and coordination among the designer, general contractor and the technology integrator are critical to creating a seamless homebuilding process.
The design–build process delegates a single point of responsibility contact to unify the flow of work and reduce the delivery schedule by overlapping the design phase and construction phase of a project.
And then comes the technology. “We market it by demonstrating it in our model homes,” Jones says.
Blue Heron allows clients to immerse themselves in the possibilities by showing them one of the two model homes they have available. As the clients become engaged with the technology, they understand it better and get an idea for what they want. The integrators also have their own show rooms to showcase the newest technologies available.
“In our case, we encourage other builders and architects to really take a look at putting together a design-build situation,” Jones says. “The more control you have, the better chance you have of maintaining the vision you are trying to achieve.”
12 TecHome Builder Special Report: IBS Wrap Up – Emerging Tech Trends
While Blue Heron does not have a standard technology offering, it sets clients up with an extensive wiring package infrastructure.
“We understand that technology has got to be integrated into everything else we do, all the way into the structure of the home,” Jones says.
Once Blue Heron gives the integrator feedback on the client’s budget, Blue Heron steps away to let the professionals dive into the solutions that are just right for them. The integrators do this on a case-by-case basis, sometimes giving the clients questionnaires, but always figuring out who they are and what they need through casual conversation. Clients can then choose just about anything within their price range, from recessed motorized shades to LED lit countertops in the bar or wine tasting room.
“For the selection process we take a back seat to that conversation between the client and the integrator, because we really believe the right solution is to find an integrator who really knows what they are doing, who can really have that up-to-the-minute, intelligent conversation about what the appropriate solutions are for the client and what technologies are available,” Jones says.
Afterwards, the design, architecture and construction teams are reengaged to get everyone on the same page and coordinate engineering and plans.
The cost to incorporate the technology represents about 10 percent of the total construction cost, but Jones says it’s worth it to gain a competitive advantage.
“You’re going to see positive results any time you step out of the status quo and do something that’s a little bit different and innovative,” says Jones.
13Visit www.techomebuilder.com
Multiplying Money in Multifamily
55+ homeowners want more tech.Forget millennials … tech trends are for the 55 and over crowd. At least that’s the philosophy Traditions of America follows and hopes to expand on after this year’s International Builders’ Show. The privately owned multifamily developer and builder in Pennsylvania has delivered more than 2,500 active adult homes since the company started in 1997.
“Time is often just as, or more important than money,” says partner at Traditions of America Nathan Jameson. “The ability to manage their water heater settings remotely from a smart phone application and the ability to, with the touch of a button, reduce energy consumption through ‘smart’ temperature settings on their heating and cooling unit–these are simply better choices than convention.”
Traditions of America already uses Apple TVs in its model homes, clubhouses and welcome centers, and Apple iPads display homeowner testimonials as part of the company’s Buying Made Easy Program. Technology has also been tested in the individual units.
“Energy saving and convenience technologies like tankless water heaters are very popular in our homes, where they’re saving energy and adding convenience to their lifestyle,” says Jameson.
The use of tech has paid off, as the company’s revenue has grown 20 percent annually. Last year, Traditions of America closed 260 homes in five communities for a total revenue of $105 million. And Jameson expects even more money to roll in with new tech being introduced this year.
With those in mind, Traditions of America will launch its first “smart home” in its Saucon Valley community this year. Jameson discovered some of the new tech for that home at IBS.
Jameson’s four key reasons to integrate more technology in new homes …
1. Convenience – buyers want it if it saves time and/or improves quality of life
2. Money-saving – mature customers want to know the impact on their wallet
3. Competitive advantage – give buyers a reason to leave the “old” and buy “new”
4. Enhances operational efficiencies – focus on new acquisitions and current clients
14 TecHome Builder Special Report: IBS Wrap Up – Emerging Tech Trends
The company is now creating even more bonds with vendors after IBS, as it prepares to train its staff on new products. The vendor usually provides the initial training to Traditions of America employees. An in-house expert then takes over as the “go-to” person within the company.
“This reduces employee frustration,” says Jameson, “by mitigating the ‘us versus them’ mentality that can materialize when the primary technology advocate is not a team member.”
The company also uses GoToMeeting, Skype and Evernote Chat to give employees a chance to respond to changes.
Traditions of America has been recognized by the NAHB for its planning, design, amenities and marketing and has received more than 20 gold and silver awards from the organization’s 50+ Housing Council in the last four years.
Jameson is excited about what the future of tech may bring to his company. “As far as the products I saw at the Builders’ Show, I felt there was a definite trend toward integration and home automation.”
That means more home and life safety devices that are important to the 55 and over buyers, a group Jameson says is now breaking through the stereotype that older clients can’t adapt to tech. Traditions of America is evolving now because its clients 65 and younger have already spent most of their lives using technology, and soon the entire consumer base will be tech savvy.
For now, the trick is to focus on demonstration and education … allowing the older homebuyers to touch, feel and utilize the tech as part of their purchase.
Jameson is interested in the following tech:
• Nest’s learning thermostat – which learns a client’s schedule, programs itself and can be controlled by a phone
• Control4 – which integrates lighting control, music, home theater, climate control, security, smartphones and tablets
• The Kwikset Kevo – which allows the lock to operate by just a touch when you pair it to a Bluetooth device such as a cell phone and can track when and who opened the door
• Apple HomeKit – a framework in iOS, that hasn’t been released yet, for communicating with and controlling connected devices in the home
“The smart home is really critical because it gives clients another reason to buy new, and we in the new home building business are competing against the home the homeowner lives in today,” says Jameson. “Something has to be compelling enough for them to leave that home and move into a new one.”
To sell tech, you have to use it. The Integrated Homebuilder Management System (IHMS) is an enterprise software that helps Traditions of America stay connected with its subcontractors, vendors and suppliers. They can view work orders and purchase orders and communicate directly with construction managers.
“The use of this paperless enterprise technology dramatically reduces the time and effort needed to manage vendor relationships,” says Jameson.
15Visit www.techomebuilder.com
Are We Ready for Renewables?
Host-owned rooftop solar adds significant value to U.S. homes across 8 states, report says.Making unexpected connections is what the International Builders’ Show is all about. One session, Are We “Ready” for Renewables?, did just that by bringing together a renewable energy researcher and a green home appraiser—one who works behind the scenes and one who’s on the front lines of the housing market. The topic: a new report quantifying the value of rooftop photovoltaic (PV) systems for homebuyers and builders.
The presenters and lead authors of the report, titled Selling Into the Sun, were Ben Hoen, a research associate at Lawrence Berkeley National Laboratory, and Sandra Adomatis of Adomatis Appraisal Services in Punta Gorda, Flor. Both stressed the timeliness and comprehensiveness of their study, which was funded by the U.S. Department of Energy’s SunShot Initiative, a collaborative national effort driving innovation to make solar energy cost competitive with traditional energy sources before the end of the decade.
“Capturing the value of PV to residential properties is important for enabling a robust rooftop PV market,” Hoen says. “Appraisers, sales agents and others tasked with property
valuation have made strides toward valuing PV homes, and several limited studies suggest the presence of PV home premiums, particularly in California.”
The new study fills important gaps in this literature, Hoen says, and illuminates various factors that might influence U.S. PV home premiums. It more than doubles the number of PV home sales previously analyzed, examines home sale transactions in eight different states and spans the years 2002 to 2013, encompassing the recent housing boom, bust and recovery.
16 TecHome Builder Special Report: IBS Wrap Up – Emerging Tech Trends
“As PV systems become more and more common on U.S. homes, more than half a million as of 2014, it will be increasingly important to value them accurately, using a variety of methods,” says Adomatis.
“Our findings should provide greater confidence that PV adds a quantifiable premium to a wide variety of homes in California and beyond.”
In addition to California, the study investigates home pricing trends in Connecticut, Florida, Massachusetts, Maryland, North Carolina, New York and Pennsylvania by analyzing the sales of more than 20,000 homes in these states.
“We recommend that homes that went solar through leases or purchase agreement programs should be an area of future research,” Adomatis adds. “Our current study examines only homes with host-owned systems owned by the property owner, not a third-party-owned or leased system.”
Among the report’s major conclusions are the following:
• Homebuyers consistently have been willing to pay more for a property with PV across a variety of states, housing and PV markets and home types. Average market premiums across the full sample of homes are about $4 per watt or $15,000 for a typical 3.6-kW PV system.
• Premiums for PV homes are $1.10 per watt higher in California than outside California ($16,000 and $12,700 respectively for an average- sized system), but this difference is not statistically significant.
• PV premiums remained fairly consistent even as PV gross costs decreased dramatically over the study period and the housing market went through upheaval.
• A “green cachet” might exist for PV homes; that is, buyers might be willing to pay a certain amount for having any size of PV system on their homes and then some increment more depending on the size of the system.
17Visit www.techomebuilder.com
18 TecHome Builder Special Report: IBS Wrap Up – Emerging Tech Trends
Make a house a connected home in minutes.
Adjust lights, shades and temperature from anywhere.
Learn how. Call Lutron customer service at 1.888.588.7661 or visit www.choosecaseta.com.
©2015 Lutron Electronics Co., Inc. | P/N 306-0120 REV A
Caséta Wireless plug-in lamp dimmer, in-wall dimmer, Pico® remote, Serena® battery-powered shades, Smart BridgeTM, and thermostat.
®
FREE Lutron app
Dipping Your Toes Into Tech
Inexpensive ways for builders to tap into technology.Technology is trendy and expensive. Production builders struggle to stay cutting-edge, while also keeping the costs of their homes at a price point their customers can afford. Many of these high-volume builders took advantage of IBS to find some affordable tech trends.
“All the buyers out there are just looking for a little bit more for their money, so if you can show them you’re thinking outside the box, then you’ve got them locked in,” says production builder Kirby Burks.
Burks is the managing partner at C3 Custom Homes, which mainly focuses on multifamily and residential homes in Northwest Arkansas. His company has built three communities in the Bentonville area, and he’s looking for new tech ideas that he can budget for in the future.
SnapPower’s booth caught his eye at this year’s IBS. The 6-month-old SnapRays Guidelight for night time task lighting is built into the cover plate of an outlet, so builders don’t have to wire it or plug it in and it won’t take up an outlet.
“You have to pay money as a builder for [other guide lights] to be hard-wired. Our product however … there’s absolutely no cost to installing it because the builders already need, by code, outlets throughout the house,” says SnapPower founder Sean Watkins.
“Your average cost to put a hard-wired light in the home is $60 to $90 after installation and labor,” he says.
SnapPower won Best in Show at IBS for the cover plates that cost $12 to $15 each.
19Visit www.techomebuilder.com
Make a house a connected home in minutes.
Adjust lights, shades and temperature from anywhere.
Learn how. Call Lutron customer service at 1.888.588.7661 or visit www.choosecaseta.com.
©2015 Lutron Electronics Co., Inc. | P/N 306-0120 REV A
Caséta Wireless plug-in lamp dimmer, in-wall dimmer, Pico® remote, Serena® battery-powered shades, Smart BridgeTM, and thermostat.
®
FREE Lutron app
The Guidelight is SnapPower’s first product. The company is also running a Kickstarter campaign for a cover plate with a USB port that’s coming out in March … a product Burks will be waiting for.
“Everybody has cell phones, so we could put them in the master bedrooms, in the nightstand,” says Burks. “I know at home we’re always looking for our cell phone charger, so a USB port beside the nightstand would be awesome.”
Cuff runs Steven Cuff Construction Company in Charlotte, N.C. He’s trolling for tech at IBS for his business that touts cost effectiveness for first-time buyers.
“We’re looking for technology software,” says Cuff. “Things that will make us more productive in the industry. We also want to be a frontrunner in some of the new and innovative products that are out there today.”
“SnapPower’s Guidelight is a great product,” says production builder Steven Cuff. “Very easy to install and has tremendous customer appeal. It’s just efficiency and it’s what people want, nothing more than that. You’re just trying to satisfy a customer.”
Brio also showed inexpensive ways to innovate at this year’s IBS. It’s Smart Outlet and Safe Outlet use technology that adds a “dormant” state to the 120-volt electrical outlet so that it automatically supplies electricity only when it is needed, protecting children and pets and reducing the risk of fire.
Builders can simply replace an existing standard outlet with the Brio product that was designed by an ex-Sony design team. Brio’s site also has an instructional video.
Brio Safe is the basic product that focuses on electrical safety only. It costs roughly $35 per unit. Brio Smart also monitors carbon monoxide, water events and fire in the home and sends alerts through an app to the smart phone. It goes for $79 per unit. They’re both expected to be available later this year.
“Just basically changing out an outlet cover,” says Cuff. “Just change the look, change the people’s thought process; that’s what they want in the marketplace.”
20 TecHome Builder Special Report: IBS Wrap Up – Emerging Tech Trends
Convenience and safety are two popular categories homebuyers are looking for. Another is health.
“We actually developed the H-300-NXT as a direct response to homeowners concerns for a healthier home,” says Pentair’s marketing communications specialist Kathleen Fugler.
Pentair introduced its newest Everpure filter at IBS. It is NSF/ANSI 401 certified and reduces emerging contaminants in drinking water, such as pharmaceuticals, over the counter medications, and manufacturing compounds like BPA. It has a 50 percent larger filter than normal, that’s also 100 percent recyclable.
“Homeowners will not only feel good because their water tastes great, but they’ll know that they’re doing something good for the environment,” says Fugler.
The H-300-NXT drinking water system uses an additional faucet and may be on the pricier end for production builders. It’s $479.99 for the system. Filters go for $179.99 and should be replaced yearly.
But, if you’re going to dip your toes in tech, you might as well get your whole foot wet. Builders can try out all of these products for just over $500.
Subscribe to the TecHome Builder newsletter for more.www.techomebuilder.com/subscribe
21Visit www.techomebuilder.com
2015 to 2020: Connecting Our Homes to the Internet of Things
The Internet of Things, the Internet of Everything, the Industrial Internet: Call it what you want, it’s here to stay. Homebuyers want connected devices, and homebuilders can expect connectivity and automation to change the business significantly in the next five, even 20, years.
Two IBS sessions made it clear that connectivity and automation are what homebuyers of all generations want, and what the industry should expect.
What’s Currently Trending in Today’s Homes hosted by Rose Quint, the NAHB’s assistant vice president of survey research, and Jill Waage, executive editor for home design at Better Homes and Gardens—released the results of two surveys by the NAHB and the home design magazine that describe the features and technology preferences of new home buyers that will shape the single-family home of 2015 and beyond.
The State of Technology in 2020 session—presented by Chad Davis, senior director of online services and digital media for the NAHB, and Phil Crone, the executive officer of the Dallas Builders Association—showed a packed room of homebuilders and manufacturers the industry-changing technology they can expect in 2020.
Both sessions proved that while high-tech “bling” might attract homebuyers’ eyes, it’s the devices and connectivity that will make operating a home more affordable and efficient, changing the ways homebuilders build their homes, and operate their businesses.
22 TecHome Builder Special Report: IBS Wrap Up – Emerging Tech Trends
The NAHB’s Rose Quint unveiled the results of two surveys: one asking homebuilders what features they are most likely to include in a typical new home this year and one asking Millennials what features are most likely to affect their homebuying decisions.
Of the top 10 features mentioned by homebuilders, four have to do with energy efficiency. Low-E windows, Energy Star-rated appliances and windows and programmable thermostats were popular among homebuilders in the survey, while Millennials want separate laundry rooms (and see it as a location for smart devices), as well as Energy Star appliances and home certifications.
They’re also willing to pay 2-3 percent more for energy efficiency as long as they see returns on their utility bills. Millennials also consider technology to be a major part of their lives, using smartphones and tablets to control their TVs and sound systems, heating and air-conditioning, and security and lighting.
“They want to use their brains for other things, not for remembering whether they adjusted the heat or closed the garage door,” BHG’s Waage says.
Looking forward to 2020, Chad Davis suggests that we’re currently in the “bling” stage of home automation and smart devices. He used connected lighting as an example.
“I don’t know that I necessarily need to control my lights via the IoT; that’s not of value to me. This may continue to exist, but this isn’t the killer app that gets this technology into the home. It’s just getting us ready for something bigger that’s coming.”
24 TecHome Builder Special Report: IBS Wrap Up – Emerging Tech Trends
2020: Connectivity, Standardization and Automation
Monitoring and Security: Actionable Connectivity
What’s coming are homes and devices that talk “past” us mere humans to produce actions: ordering propane for the grill from the supermarket, tracking surges and energy use for the utility, and notifying a building inspector of any structural problems.
The problem, Davis says, is that there is currently no standard platform for all of these devices to use.
“Until we have standardization we’re not going to have the cohesion needed to drive this forward.”
Although Nest and its platform Thread are the poster children for such a platform, Davis says many device makers are developing closed platforms that will only work with their own devices. It’s like Android versus Apple’s iOS or PC versus Mac on an even larger scale.
“Nest is basically using the App Store model that Apple created and creating a place that everybody can profit from and take a little cut of the cash that comes through as people continue profiting,” Davis says.
Currently, homeowners can control their thermostat from their phone and allow the thermostat to learn what temperatures they like and when to set them, but with Thread, other devices can also talk to the thermostat, such as the ceiling fan, security cameras and motion sensors, saving energy and creating a new idea of home security.
More than half of Millennials, 51 percent, want security devices in their homes, according to Waage. A lot of the same devices that let you know whether you forgot to lock the house in the morning also inform you about what’s going on with your house.
“It’s interesting to watch this generation turn the conversation away from purely ‘keeping the bad stuff out’ and onto safety and security.
“This is allowing them to access more information. They bring technology with them every day to monitor whether the house is leaking, and did my parents who are retired and live two states away open the refrigerator today? Did they eat?”
The future smart home will be able not only to tell you that your roof is leaking or the window is open. It will also be able to do something about it, closing the window or notifying the homebuilder or the municipality, says Davis. That could lead to all sorts of new issues and opportunities: More data for potential homebuyers and real estate agents on the quality of your homes, and data that can lead to better-built homes for builders.
“What the industry is trying to figure out now is how to take that data and make it actionable,” says Davis.
51%of Millennials want securitydevices in their homes
25Visit www.techomebuilder.com
ConclusionAs the 2015 IBS came to a close, certain trends became apparent. Homebuilders are looking for one platform to rule them all and technology that can be used by anyone.
“I was very focused on integrating technologies so families could live in a multi-generational environment making young families and their parents comfortable and compatible,” says John Benton of Middle Road Ventures.
“The benefits of families being able to monitor their more senior family members without intruding is huge and could save families thousands of dollars, compared to having part- or full-time people employed to care for seniors.”
One thing is for sure, homes are becoming smarter. Builders are evolving their offers and directing their attention toward technology to increase profits and remain relevant.
Subscribe to the TecHome Builder newsletter to learn how other builders are leveraging technology.
www.techomebuilder.com/subscribe
26 TecHome Builder Special Report: IBS Wrap Up – Emerging Tech Trends
27Visit www.techomebuilder.com
2015Get Ready
Hyatt Regency in Austin, TX
No
ve
mb
er
4–6
, 2
015
Om
ni at
Ch
am
pio
nsG
ate
, F
Lw
ww
.tech
om
eb
uild
er.co
m/l
ux
to our weekly newsletterwww.techomebuilder.com/subscribe