Millennials don’t all share the same homebuying preferences. As described in this recent Forbes article by Andrew Arnold, older millennials have embraced smart home technology while the younger of the group tend to be more focused on lowering mortgage payments that may contend with student loans and other debt. Thankfully, with Lennar’s Everything’s Included®, new home buyers don’t have to sacrifice connectivity for value. The Connected Home by Lennar is the first Wi-Fi CERTIFIED™ Home Design that keeps you connected to the most desirable technology brand devices, all of which are included with your new home at an outstanding value.
One thing we also know about millennials is that they are very mindful of environmental sustainability. They tend to do business with companies that are also mindful of the environment. So, it seems logical that they would look for homes that are – or at least re-configure homes they buy to be – “smart,” with the IoT devices that allow them to save energy and provide more convenience. Smart homes allow them to control heating and cooling, lights, and a myriad of small home appliances remotely.
The older segment of this generation (aged 27-36) seems “sold” on smart home concepts. In fact, 38% of them already have purchased homes that are “smart” or have installed the technology. And of those remaining, 58% are interested in doing this.
The younger contingent does not seem as interested in doing so. There may be several reasons for this. One, this younger segment appears to be very security conscious and is concerned about the risks involved in IoT devices in their homes. They worry about privacy.
There is also the cost factor – configuring a smart home can be pricey.
The other key factor in home buying for the younger segment of this generation is mortgage cost and payments. These young people are closer to the college loan payment issue than their older cohorts. They are not looking for smart homes as much as they are looking for the most favorable lending environments.
Another reason seems to be that they are far more interested in creating a healthy home environment than a “smart” one. They want sustainable and all natural furnishings; they want construction materials without chemicals; they want LED lighting technology; they want energy-efficient windows. They don’t seem to want to be “cool” and “trendy” as the older segment does.
Where does this leave the future of smart homes?
Smart homes are not going away. And as the technology improves, along with security innovations to provide greater security and privacy, they will prove to be a valuable resource for all consumers who are looking to be environmentally conscious and to lower the costs of their utility bills. In fact, a recent survey indicated that 72% of millennials would be willing to pay $1,500 more for a home that was “smart,” and 42% of those would be willing to pay as much as $3,000 more.
Smart home technology is only improving, and there certainly are exciting innovations and challenges for the future. These will attract more and more millennials who thus far have not invested in smart home technology.