Why Buyers Are Willing to Pay More For Smart Homes
As the millennial generation grows up, they’re quickly reaching home-buying age and gaining purchasing power. Unsurprisingly, this comes with a shift in buying attitudes when compared to older generations. Specifically, a majority prefer investing in homes with smart technology.
In fact, 61 percent of millennials are willing to pay extra money to live in a smart home. Why are today’s homebuyers so attracted to the prospect of smart home ownership? To find out, we’re breaking down what exactly makes technology so attractive to millennials.
The Link Between Technology and History
Nearly all millennials were weaned on technology much earlier in life than their forebearers. They’ve almost always relied on it in some capacity, so it should be no surprise that nearly 75% percent of millennials say technology makes their lives easier. Since smart home technology can help with everything from controlling your lighting to detecting leaks in your plumbing, millennials represent an ideal market.
Smart Home Technology and Environmental Responsibility
Millennials care about the environment—so much so that they’re willing to pay extra to protect it. Three out of four millennial consumers will pay extra for products that come with “sustainable offerings”. As smart home technology is often designed to help reduce power consumption, reduce environmental impact, and contribute to a healthier planet, it’s no surprise millennials are jumping on board.
As smart home technology reduces a homebuyer’s power consumption, they’ll see significant energy savings. A high-quality smart thermostat alone can save the average homeowner more than $130 each year.
In addition, there are also smart home apps like Benefyd, which collect data on usage habits and provide a comprehensive plan for using energy more efficiently. Pairing one of these apps with existing smart technology can really improve a home’s efficiency. Many millennial homebuyers will pay the extra money upfront for higher long-term savings.
Advice to Sellers
Whether you’re a private seller, a broker, or a realtor, you need to be aware of the difference smart home technology can make when you’re trying to sell a house. Millennials are now the largest group of homebuyers in the real estate market, and they want smart homes. Add smart features to a property you want to sell, and you’ll be much more likely to attract members of this important market.