CEDIA Market Size & Scope Survey: Housing Market Dynamics Driving CI Direction
The results of CEDIA's annual U.S. Market Size & Scope of the Residential Technology System industry canvass, taken in mid-June, were unveiled at CEDIA Expo 2019. The CEDIA survey showed that current housing market dynamics point to increased opportunity for connected-technology integrators – especially among affordable-home buyers, according to a summary given by Grant Farnsworth of The Farnsworth Group, which did the research.
However, multiple housing market dynamics are at play – and are making an impact. For one thing, he said, people aren’t selling their homes as frequently, which is affecting market inventory. And while existing-home pricing is on the rise, the building industry is feeling the impact of tariffs on finished goods – the elements and tools needed to make new homes – putting a damper on new affordable-home construction.
In the new-construction sector, Farnsworth reported to the audience, “the luxury [home] market is saturated... The opportunity is in affordable homes… There’s still opportunity out there, but the growth will not be on the luxury side.” He noted that integrators would do well to take note of the mindset of home buyers – namely, Millennials – who are just moving up from entry-level homes and who are becoming more familiar with do-it-yourself (DIY)-friendly home technology products that are flooding the market – and that are, no doubt, whetting their appetites for deeper home control solutions.