Future Smart Home Construction Trends Home Builders Need To Know

Want to gain a competitive edge in home construction?

Smart home technology is here to stay. And while it used to be considered a luxury, it’s now table stakes in new home construction. The global smart home market is projected to reach $633 billion by 2032, and it’s time for building contractors to take notice. The good news is that smart home technology is becoming more accessible and affordable every day.

Let’s look at the current trends…

If you prefer to watch, here’s a full video walkthrough of this blog. Enjoy!

Table of Contents show

• 1 The Rise of AI-Powered Home Automation
• 2 Matter Protocol: Finally, True Device Interoperability
• 3 Energy Efficiency That Actually Pays Off
• 4 Modular Construction Meets Smart Technology
• 5 What Building Contractors Need to Know Now

The Rise of AI-Powered Home Automation

Smart homes in 2025 will know what you want before you do. Artificial intelligence (AI) is powering smart home automation like never before. AI is driving more personalised and intuitive user experiences based on habits and preferences.

Consider this… Traditional smart home tech required manual programming, a lot of tinkering, and constant adjustments. Now AI can do all the heavy lifting behind the scenes.

AI smart homes can learn and predict when householders wake up, when they leave for work, and even make lighting adjustments based on weather conditions outside. As the study by JD Residential reveals, building contractors who can offer smart home tech are increasingly winning new residential construction projects.

AI is improving smart home experiences across the board. Voice assistants like Google Assistant (91 million users) and others are blending with home automation systems to make managing your home seamless and intuitive. Simply by talking, homeowners can now control their HVAC, security cameras, lighting, and more.

Installation of smart home technology is going to require new skills. Building contractors need to know how to work with technology suppliers to ensure smart tech is integrated properly from the start. Network infrastructure and connectivity must be considered with fibre-optic wiring, wireless hubs, and integrated control systems all being considered during early construction stages.

Matter Protocol: Finally, True Device Interoperability

One of the biggest hassles of smart home construction used to be device interoperability. It was a pain to make devices from different manufacturers play nicely together.

Well, all that is changing thanks to Matter protocol. Matter is an open-source standard that allows smart home devices from different manufacturers to work together without any special app or software required.

Building contractors, take note… Matter compatibility is making smart home construction more seamless than ever before. No more headaches trying to connect one device to another.

Homeowners can choose their favourite devices without worrying about compatibility. And building contractors can bid on new construction projects knowing they will have fewer headaches during installation and after project completion.

The technology has already been adopted at scale. Major manufacturers are committing to Matter compatibility, which will create standardisation in smart home construction that is more accessible and cost-effective than ever.

Energy Efficiency That Actually Pays Off

Energy efficiency isn’t just a feel-good buzzword. Smart homes with AI-driven energy management systems can now reduce energy consumption by 10-15%. That’s real money back in homeowners’ pockets.

Smart thermostats are leading the way in this space. Thermostats that learn household routines and adjust heating and cooling automatically to optimise energy efficiency are everywhere. On average, smart thermostats like EnergyStar units can shave 8% off heating and cooling bills – about $50 per year. Seems small, but over a home’s lifetime, that’s a lot of value-add for building contractors to offer to their clients.

Energy efficiency is expanding beyond thermostats too. Smart glass installations can save 25-30% of residential cooling loads per year. Advanced insulation materials and phase-change tech are helping to create energy-efficient homes that keep residents comfortable without wasting energy.

Building contractors benefit here too. Government tax credits and rebates for energy-efficient smart home features are making these systems more affordable for homeowners. In the US, households can recoup 30% of purchase costs for qualifying heat pumps, water heaters, and energy-conscious controls under the Inflation Reduction Act.

In short, smart energy management systems in homes are commanding 3-5% higher asking prices. That’s a major value-add for building contractors to provide their customers.

Modular Construction Meets Smart Technology

Modular construction is one of the hottest construction tech trends right now. Modular prefabricated sections can be built off-site, moved to the construction location, and assembled quickly – all with integrated smart home tech.

Faster build times, lower costs, and less waste are all clear benefits. And when smart technology is built into modular units from the start, homeowners get a fully connected home without retrofitting hassles.

Data from industry sources is showing volumetric construction methods can reduce build schedules by 20-50% depending on project size. That’s a big deal for building contractors operating in tight labor markets and with limited time.

Smart technology is now being built directly into modular units during the factory construction phase. Building contractors need to understand how to plan smart home installation and build it into the construction schedule. Electrical layouts can be designed for smart device integration, structured wiring can be installed properly, and network infrastructure can be tested during the factory phase before the modules even arrive on site.

The outcome? Homes that are truly smart from the foundation up, not just an afterthought added on at the end of construction.

What Building Contractors Need to Know Now

The smart home construction landscape is rapidly changing. Building contractors that embrace the changes early will have a distinct competitive advantage over their peers. So, what do you need to know now?

Smart home tech is no longer a luxury, but a basic expectation. Homebuyers at every price point are looking for smart home features. Basic automation like smart locks, video doorbells, and connected thermostats are no longer a luxury in new home construction. The number of US households using smart home devices is projected to reach 103 million by 2028.

New construction is where the action is. Retrofit projects make up the largest share of the smart home market, but new construction is growing at a 17.3% annual rate through 2030. Building contractors who are capable of integrating smart features during construction will win more projects.

The right partners are crucial. Building contractors need the right partners and suppliers to make smart home construction work. Cloud-based construction technology solutions, BIM platforms, and digital collaboration tools are essential to planning smart home installations with more accuracy and fewer mistakes.

Sustainability matters. Homebuyers are willing to pay more for homes with energy-efficient smart systems. Building contractors with solutions that can demonstrate and measure energy savings through smart home technology are going to be the ones that rise above the noise.

Wrapping This Up

Smart home construction technologies are here to stay. Artificial intelligence, device interoperability, energy efficiency, and modular construction are just some of the innovations building contractors need to know about right now. These technologies are creating homes that are more comfortable, secure, and sustainable than ever before.

The bottom line for building contractors is that you need to adapt quickly or get left behind. But the good news is that tools and technology are more accessible than ever. Start by integrating basic smart features on small projects, partnering with technology suppliers, and educating yourself on trends now.

The future of home construction is going to be smart, and building contractors who embrace these technologies now will be the industry leaders of tomorrow. So what are you waiting for?