Primary marketHome Technologies & Green Designs Helping Builder Profits
Despite the current economy and decline in the housing market, builders have not abandoned home technologies, according to new findings in the 7th Annual State of the Builder Technology Market Study released by the Consumer Electronics Association (CEA). The study found that a majority of builders remain committed to home technology and recognize its importance in marketing new homes. According to the CEA, consumer desire for electronics helped preserve builder revenue in the current housing market.
Seven in ten builders (71 percent) report that technology helped them preserve home renovation revenue that might otherwise have declined this year because of the down economy – an increase of ten percentage points from last year.
“Home technology is poised to take off as the economy and housing market improves,” stated Steve Koenig, CEA’s director, industry analysis. “Builders are aware of the value of home technology and have increased their marketing efforts – suggesting builders are leaving no stone unturned to help move inventories while recognizing the importance of home technology for consumers.” Builders are finding more selling points in entertainment-related technology features, which corresponds with the growing consumer trend to stay at home in light of the economy.
The survey showed that builders have increased entertainment-related offerings such as multi-room audio (69 percent) and home theaters (74 percent) in 2008. Home theater installation was up eight percentage points in 2008 and was the only category that did not decrease or remain the same in overall installations. Home technologies, as well as green design trends drew more than 60,000 builders, remodelers, architects and other residential construction professionals to The New American Home® 2009 during the recent International Builders’ Show in Las Vegas. Constructed by Las Vegas builder Blue Heron and designed by the architect firm Danielian Associates of Irvine, Calif., the 2009 home features a state-of-the-art energy efficiency package and elegant contemporary design.
“I really liked the emphasis on home technology and energy efficiency,” said Tannis Goehring, a homebuilder from Orlando (FL). “And this home is so easy on the eyes. Inside and out, it is a beautiful home.” Goehring, who was part of the team at Goehring and Morgan, Inc. that built the 2005 New American Home, said this year’s home gives visitors a high-impact first impression that never disappoints as they move from to room.
“The moment you walk in the front door you see the waterfall going from ground level to the sunken courtyard. And behind the waterfall, a waterway takes your eye to the back of the home. It is very clear that outdoor spaces and the water features are central to this home,” said Goehring.
As beautiful as the home is, it is the energy efficiency package that really wowed builders in Las Vegas, said Bill Nolan, chairman of The New American Home Task Force. “The New American Home has been a leader in green building for years, but this latest edition is built to be the most energy-efficient home in the history of this series,” he said.
“Builders, architects, engineers – anybody with an interest in housing construction – will be fascinated by the natural gas-powered heating and cooling system, the photovoltaic cells and the solar water heating,” said Nolan, who runs The Nolan Group, a housing industry consulting firm in Altamonte Springs (FL). “Even the insulation in this home is exciting. The whole package of energy-efficiency products work together to make this a near-zero-energy home.” The New American Home benefits from a comprehensive design approach to achieve extraordinary energy efficiency. A proprietary gas-powered heating and cooling system with a SEER rating of 18 combined with other energy-efficient features such as low-E windows, advanced insulation, vertical and horizontal solar overhangs and window louvers enabled the home to achieve a Five Star-Plus HERS rating of 57. This is before factoring in the installation of a 12,000+ khz solar panel system striving for a net-zero level of electrical consumption. Insulated concrete forms (ICF) were used predominately for the basement and structural walls, which have R-values up to 50 and provide exceptional insulating properties.
“The design concepts, construction techniques and materials used in The New American Home 2009 can be adopted for use in any home,” Nolan said. “In a sense, this showcase home is a collection of ideas for the industry to take away and put into any new or remodeled home.”