Smart buildings have changed how we experience the built environment. Once deemed “cool” (and costly) features, smart building technology is a basic requirement for new builds—residential and commercial—and current owners view it as desirable for retrofitting existing, older structures. The origins of smart building technology go back to the early 70s, but the explosion of Internet of Things (IoT) devices in the mid-2000s led to the growth of smart buildings, revolutionizing the real estate industry.
While smart building technology is often associated with energy efficiency and streamlined operations., its real value comes from an improved user experience. For homeowners, smart technologies create a hands-free or simplified (app-based) experience for home systems. For employers, smart building technology impacts worker productivity and satisfaction. Residential or commercial, new technologies enhance comfort, security, lifestyle, and day-to-day functionality and efficiency. This article explores smart technology in new home builds, home retrofitting and commercial structures.
Customizing homes with smart technology
Statistia forecasts the number of smart homes in the U.S. will reach 103.15 million users by 2028. Homes equipped with devices and systems that can “talk” to each other and be controlled locally and remotely via a smartphone app or other central hub (think Amazon Alexa or other voice-controlled assistants) constitute a “smart home.” Common smart home features include thermostats, lighting, security, appliances and entertainment systems. The Consumer Electronics Show annually showcases innovations in smart home technology. See products from the 2024 show.
Integrating smart home technology into a new build is easier and less expensive than retrofitting an existing building. The design of new build infrastructure integrates all systems seamlessly, enabling better connectivity and smoother operation. Buyers can customize their homes to accommodate specific needs and interests. Here are some of the most popular smart home technologies.
- Smart lighting. Some readers will recall The Clapper, a sound-activated electrical switch popularized in the 1980s by its “Clap on, clap off” jingle. The technology has come a long way. Today’s smart lighting systems offer convenience and cut electricity bills when programmed to turn on and off based on motion, time and light. They also enhance security when connected to an alarm system. You can adjust color, brightness and temperature to create the desired ambiance for a specific time of day.
- Climate control. Smart thermostats help homeowners manage energy costs by programming a seven-day temperature schedule based on family member preferences and presence (including on a room-by-room basis). Most systems allow remote control through Internet access. Advanced systems support geofencing technology, allowing the thermostat to automatically lower or raise the temperature when you leave or return home. Other features include reporting capabilities for system monitoring, outside temperature reporting, maintenance reminders and power cycle alerts that signal a system performance problem.
- Smart audio and video. Smart home entertainment systems integrate with smart home automation. Systems components (speakers, screens, amplifiers, etc.) work together to create an entertainment experience unique to every room controlled by an app or voice command.
- Appliances that adapt to your lifestyle. The smart appliance market is evolving—moving from the novelty of individual features (your refrigerator letting you know it’s time to buy milk) to broader lifestyle management. Built-in connectivity and sensors allow users to operate smart appliances remotely (think preheating your oven on your drive home). In 2023, 18% of U.S. households owned a major smart appliance, according to Statistica.
- Home security. A study by Security.org found that seven in 10 homebuyers are looking for a smart home, with “security and safety” at the top of the list of smart device categories. The technology has moved beyond remote video doorbells and monitoring. New smart lock features use facial recognition and biometric authentication to distinguish between occupants and intruders, eliminating the need for keys and sending alerts if an unknown person enters your home. Some systems use AI to detect and report activity that differs from the routine.
Those planning to buy new construction should engage a smart home specialist and involve the architect, builder and interior designer at the early stages of a new build to ensure the home’s infrastructure will support the latest technology. Consider future upgrade potential as your needs change and new technologies emerge, and be mindful of digital security.
The role of smart technology in retrofitting
Thanks to wireless technologies, you can install many smart home products in existing homes to add convenience, comfort, security and energy efficiency. Energy costs drive many homeowners to consider smart home technology. With increasing instances of extreme weather, expect growing appeal for energy-efficient homes and a boost in resell values.
Beyond thermostats and lighting systems, homeowners can install smart shades, energy and water usage meters, irrigation systems and other devices to live more sustainably. Through 2032, federal income tax credits are available to homeowners, allowing up to $3,200 annually to lower the cost of energy-efficient home upgrades by up to 30%. Check with your municipality and energy supplier for rebates and other incentives to offset the cost of retrofitting.
Retrofit challenges
Aside from labor costs, owners planning to retrofit a home to be a smart home can expect some challenges, including limited options for customization. Retrofitting may require compromising certain features due to space, layout or structural constraints. Installing new wiring can be disruptive. Wireless systems work well for many devices but can be less stable or inefficient in older homes with thick walls.
While new build homes typically incorporate smart devices into the home’s overall aesthetic, retrofitting may mean adding less discreet devices that detract from the home’s design. Also, multiple retrofitted systems may not communicate with each other, creating an uneven experience. Consult a smart home technology expert to identify devices most compatible with your home and budget.
Leveraging smart technologies in commercial spaces
Like a home, a smart commercial building uses interconnected technologies, systems and processes to automatically control and manage building operations—including heating, ventilation, air conditioning, lighting, security and other systems. The ideal is a comfortable and safe environment for occupants while operating efficiently and sustainably. According to the United Nations, 37% of all carbon emissions come from the built environment—the most for any single source.
Typically, sustainable buildings are more cost-efficient. The ROI of a smart building includes lower operating costs due to saving energy and water and waste reduction. Sustainability also increases building resilience, mitigating the risk of higher costs for long-term maintenance.
Commercial building owners and operations managers value smart technologies that improve tenants’ experience (creating a rental market competitive edge) while helping ensure property assets hold their value in a future where sustainability is a high priority. Specific commercial building applications include:
- Monitoring and improved maintenance. IoT-connected systems enable remote monitoring and notification for property managers. These technologies ensure timely detection and response to maintenance problems that could create risk to tenants or become more costly to repair if left unaddressed.
- Making BIM (Building Information Modeling) accessible to staff. BIM enables managers to digitally store building information, such as blueprints, plumbing and electrical installations and emergency plans. As BIMs are live models, when integrated with facilities management software, building managers can manipulate the data to test operational scenarios, enabling more informed and timely business decisions without the expense of physically making changes.
- Automating when possible. Building automation enables increased energy efficiency, reduced operating costs, improved occupant comfort and adherence to operating compliance standards. HVAC systems can be programmed to adjust building temperature and ventilation based on time and space usage. New AI technologies allow smart building technology to “learn” use patterns, e.g., temperature settings for a specific space and time each week, making adjustments shortly before a regular scheduled event. Read more about AI in building management.
- Virtual and cloud-based security. Security and the safety of occupants is a high priority for any commercial building. Smart technologies use biometrics and smart cards to control access and protect against threats. Most systems will integrate with other building systems (cameras, motion sensors, alarms) to provide a comprehensive approach to building security.
Why smart technology matters
Smart building technology will continue to evolve and push the limits of what’s possible, delivering value to real estate developers, owners, occupants and building and property managers. The power of interconnected devices enables a comfortable environment while boosting security, property values and energy efficiency, contributing to a more sustainable world.
