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1 Our homes have been hailed as the next thing in our lives to be transformed by smart technology. But is the smart home really catching on, or are consumers embracing the smart-ish home? Coldwell Banker Real Estate and CNET, the world s largest and most trusted online source of consumer technology news and reviews, partnered on a joint-consumer survey to examine consumer trends relating to the adoption of smart home technology. Who Has Smart Home Technology? More than 1 in 4 U.S. adults (28 percent) have smart home products in their home. Among Millennials (ages 18 to 34), almost half (47 percent) have smart home products in their home. Parents with child(ren) under 18 living at home are almost twice as likely to have smart home products vs. those with no child(ren) under 18 living at home (42 percent of those with child(ren) under 18 living at home vs. 23 percent of those with no child(ren) under 18 living at home). 100% Chart 1 % of American Adults With Smart Home Technology 75% 28% 47% 33% 19% 15% 37% 42% 23% 0% Total Under $100k $100k & Over AGE HHINCOME PARENT OF CHILD(REN) UNDER 18 AT HOME Yes No By region, the Midwest appears to lag behind the rest of the country in terms of adoption of smart home products. Across the rest of the U.S., 30 percent have smart home products in their home while among those in the Midwest, this incidence is 22 percent. 100% Chart 2 % of American Adults With Smart Home Technology 75% 28% 28% 30% 22% 31% 0% Total Northeast South Midwest West Region 1

2 How Are People Controlling Their Smart Home Products? The smartphone truly is the remote control for your smart home. 76 percent of those with smart home products at home are controlling one or more of those products with a mobile device. And 40 percent of those controlling one or more smart home products with a mobile device are actually controlling two or more products via that device. Can Smart Homes Save You Time? Is it true that having smart home products in your home saves you time? According to the survey data, it is. 57 percent of Americans who have smart home items say that those products save them time and at an average of almost 30 minutes per day. Although 43 percent of those who have smart home products see no time savings and still spend the same amount of time doing tasks. Those under 45 years of age are more likely to agree that smart home technology is saving them time. Among those ages 18 to 44, 65 percent say it saves time (an average of 31 minutes a day). Among those ages 45 and older, 38 percent say smart home technology saves time (an average of 25 minutes a day). 100% Chart 3 % Agreeing that Smart Home Products Save Them Time 75% 57% 65% 38% 66% 51% 0% Total Yes No AGE PARENT OF CHILD(REN) UNDER 18 AT HOME 2

3 But Can They Save You Money? This technology can save you time, but can it save you money too? 45 percent of Americans who have smart home items say that these products save them money and at an average of $98.30 per month. That s a savings of over $1,100 a year! 55 percent of Americans who have smart home items say their smart home product(s) does / do not save them money. Among Americans ages 18 to 44 who have smart home items, 50 percent say smart home items save them money vs. 33 percent of those ages 45 and older. 100% Chart 4 % Agreeing that Smart Home Products Save Them Money 75% 45% 33% 59% 36% 0% Total Yes No How Are Smart Homes Benefitting Americans? Smart home technology saves Americans time and money. But what are some other benefits of these products? More than nine in ten (91 percent) of those who have smart home products would recommend smart home technology. AGE 87 percent of those who have smart home products say it makes their life easier. PARENT OF CHILD(REN) UNDER 18 Four in five (81 percent) of those who have smart home products would be more likely to buy a home if smart technology was already installed. And 72 percent of those who have smart home products say smart home product(s) provide them with peace of mind when it comes to home security. 3

4 Younger adults are dramatically more attuned to smart home technology and the associated benefits. Table 1 % Agreeing with Statements about Smart Home Technology Statement Total I would recommend smart home technology 91% 92% 86% Smart home product(s) make my life easier 87% 90% 80% I would be more likely to buy a home if smart technology was already installed 81% 85% 71% I consider myself an early adopter of technology 77% 84% 58% Smart home product(s) provide me with peace of mind when it comes to home security 72% 75% 64% Age If I were to sell my home, I would leave my smart home product(s) if I knew the home would sell faster because of them 66% 67% 65% I made my home smart when I moved into it 57% 62% 46% Parents of Child(ren) Under 18 at Home and Smart Technology Parents with child(ren) under 18 at home who have smart home products are significantly more likely to say that such products are saving them money: 59 percent of parents with child(ren) under 18 at home vs. only 36 percent of individuals without child(ren) under 18 living at home. Parents with child(ren) under 18 living at home are significantly more likely to have made their home smart when they moved in, and significantly more likely to agree that smart home products provide peace of mind when it comes to home security. Specifically: 68 percent of parents who own smart home products and have child(ren) under 18 at home agreed that they made their home smart when they moved in vs. 50 percent of individuals who own smart home products without child(ren) under 18 living at home. 78 percent of parents who own smart home products and have child(ren) under 18 at home say that having those products provides peace of mind, significantly higher than the 68 percent agreeing with the statement among those individuals who own smart home products without child(ren) under 18 living at home. Among all survey respondents, if they were buying a home today, 59 percent of parents with child(ren) under 18 at home say that they would be willing to pay more for a home with smart home technology installed. This incidence is significantly higher than the 47 percent individuals without child(ren) under 18 living at home. 4

5 What Room do People Use Smart Home Technology in the Most? When Americans who own a smart home product were asked which rooms benefit from smart home products, over half (52 percent) cited the living room followed by the bedroom (45 percent), family/rec room (35 percent), kitchen (30 percent) and dining room (21 percent). Room in Home Table 2 Room(s) in Home that Benefit from Smart Home Technology Total Living Room 52% Bedroom 45% Family/Rec room 35% Kitchen 30% Dining Room 21% Bathroom 16% Garage 15% Laundry Room 15% Entryway 15% Lawn 10% Utility Closet 6% 5

6 What Would Make You Purchase a Smart Home Product? For Americans who don t already have smart home technology, there are several factors to consider when deciding what to purchase. 44 percent say they would consider purchasing a smart home product if the technology were less expensive. And 42 percent would consider purchasing a smart home product if it would save them at least $500 yearly on their utility bills and household expenses. Table 3 Factors that would Make One Consider Purchasing Smart Home Products (Among those without Smart Home Products in the Home) Age Parent of Child(ren) under 18 at Home Factor Total Yes No If smart home technology was less expensive 44% 57% 36% 51% 42% If it would save me at least $500 yearly on my utility bills and household expenses If I had more information about how smart home products worked If I had more information about smart home product benefits 42% 37% 49% 40% 21% 24% 18% 26% 19% 20% 23% 18% 19% 20% If they were simpler to understand 18% 14% 20% 13% 19% If I had more information about how to install smart home products If there was one integrated solution for multiple aspects of my home 15% 19% 13% 14% 15% 15% 20% 11% 15% 14% If smart home technology became more mainstream 14% 14% 13% 14% 13% 6

7 How Much Would Americans Spend on this Technology? Americans are watching their energy bills and always looking for ways to improve efficiency. Via a one-time purchase, Americans would spend the most on technology that controls heating/cooling efficiency/temperature ($99 on average). Younger adults are willing to spend considerably more for smart home devices. For example, those under 45 years of age would spend an average of $144 for heating/cooling efficiency/temperature control vs. and average of $59 among those ages 45 and older. A device that could turn the oven on remotely and pre-heat it? Those under age 45 would spend $62 for such a device, as compared to only $9 among those ages 45 and over. Table 4 Average Dollars One Would Be Willing to Spend for Specific Smart Home Items Age Parent of Child(ren) under 18 at Home Factor Total Yes No Heating/cooling efficiency/temperature control $98.50 $ $59.40 $94.60 $99.90 Monitor the temperature or other environmental conditions (e.g., air quality, humidity) in multiple rooms Monitor my home lighting and turn my lights on and off from anywhere Watch both live and recorded TV footage from multiple locations, both inside and outside my home Receive a notification on my mobile phone if a sensor in my home detects a water leak $73.30 $ $41.30 $75.80 $72.50 $59.90 $89.80 $34.10 $65.30 $58.10 $59.60 $86.20 $36.70 $70.00 $56.00 $55.60 $87.50 $28.10 $61.70 $53.50 Open and close my garage door remotely $46.40 $71.60 $24.70 $55.30 $43.40 Water the lawn automatically $46.40 $72.40 $23.90 $56.50 $42.90 Open my front door without digging for my keys $45.10 $68.90 $24.50 $62.70 $39.00 Watch both live and recorded TV footage from inside one room in my home Monitor the temperature or other environmental conditions (e.g., air quality, humidity) in one room $38.90 $58.00 $22.40 $55.40 $33.20 $35.40 $56.60 $17.10 $48.40 $31.00 Turn my oven off or pre-heat it remotely $33.30 $61.50 $9.00 $39.30 $

8 Full Methodology Americans Ready for the Smart Home This survey was conducted online within the United States between June 18-19, 2015 by Harris Poll on behalf of the Coldwell Banker brand and CNET via its Quick Query omnibus product. The survey was conducted among 4,043 adults (ages 18 and over) among whom 1,141 own at least one smart home product. For the purposes of the survey, smart home technology/products were defined as products or tools that aid in controlling a home s functions such as lighting, temperature, security, safety, and entertainment, either remotely by a phone, tablet, computer or with a separate automatic system within the home itself. Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was used to adjust for respondents propensity to be online. All sample surveys and polls, whether or not they use probability sampling, are subject to multiple sources of error which are most often not possible to quantify or estimate, including sampling error, coverage error, error associated with nonresponse, error associated with question wording and response options, and post-survey weighting and adjustments. Therefore, the words margin of error are avoided as they are misleading. All that can be calculated are different possible sampling errors with different probabilities for pure, unweighted, random samples with 100% response rates. These are only theoretical because no published polls come close to this ideal. Respondents for this survey were selected from among those who have agreed to participate in our surveys. The data has been weighted to reflect the composition of the adult population. Because the sample is based on those who agreed to participate in our panel, no estimates of theoretical sampling error can be calculated. 8

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