News

Fourth Annual CEA "State of the Builder" Survey Shows Home Techs Continue to Increase (31/1/2006)

Builders Find Home Technologies Boost Profit Potential and Help Market New Homes

The market for home technology continues to skyrocket and more builders are turning to custom installers and specialty retailers for professional guidance in boosting profits through technology integration, according to the fourth annual "2006 State of the Home Builders Study," released today by the Consumer Electronics Association (CEA(R)). Entertainment technology installations, such as home theater and multi-room audio systems, soared in 2005 and nearly half of all builders surveyed indicated multi-room audio systems were the top technology for boosting profit potential.

The study also found that home technologies are important to the successful marketing of new homes. Consumer demand is so prevalent for these technologies that 86 percent of builders agree home technologies are significant in marketing new homes. This statistic has steadily increased over the past two years from 79 percent in 2005, and 66 percent in 2004. Additionally, one-third of builders today believe home technology increased their revenues in the past year, which is up from one in four a year ago and one in five in 2004.

"With few exceptions, builders' chief reason for installing home technologies was the boost to profit potential. This is a departure from last year's survey where the most common reason to install was the buyer or the architect specified the technology in the building plans," said Senior Analyst Steve Koenig. "This year, builders' reasons for installing home technologies appear more balanced. In addition to boosting profits, we see an increasing number of builders installing home technologies as a means to compete in their market and differentiate themselves."

The study also examined the relationship with the home technology installers and the builder, concluding that more than half, 51 percent, of builders employ custom installers for home technology installation work, up from 34 percent last year. The significant increase in the number of home technologies, specifically home theater and multi-room audio and video installations, is reflected in the larger presence of installers on the job site.

CEA's "State of the Builder" survey was designed and formulated by CEA Market Research, the most comprehensive source of sales data, forecasts, consumer research, international research and historical trends for the consumer electronics industry.

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