The American housing market is changing fast. A few years ago, smart home features were considered a luxury — something you would find in high-end custom builds but rarely in standard new construction. Today, that is no longer the case. Builders across the United States are now including smart technology as a baseline feature in new homes, not an upgrade. For contractors and material suppliers, this shift is creating new opportunities and new challenges at the same time.
What Is Driving the Change
The demand is coming directly from buyers. Millennials and Gen Z homebuyers, who now make up the largest share of the housing market, grew up with technology. They expect their homes to work the way their phones do — connected, responsive, and easy to control. Builders who do not offer smart features are simply losing buyers to those who do.
Beyond buyer preference, smart home technology has also become significantly more affordable over the last five years. Smart thermostats, video doorbells, connected lighting, whole-home Wi-Fi systems, and smart locks have dropped in price to the point where including them in a new build adds minimal cost but significant perceived value. Builders have taken notice.
Energy codes and local regulations are also pushing things forward. Many states and municipalities now require energy-efficient systems in new construction, and smart thermostats and automated lighting controls help builders meet those requirements while also giving buyers something tangible they can see and use.
What This Means for Contractors
For general contractors and trade subcontractors, the rise of smart home features means more coordination is required earlier in the build. Low-voltage wiring, structured cabling, and conduit runs for smart systems need to be planned during framing — not added as an afterthought at the end of the project.
This is where accurate planning and budgeting become critical. Contractors who use professional takeoff estimating services are better positioned to account for these added scopes from the start. Smart home rough-in work — including conduit, wire pulls, panel space for smart panels, and mounting locations for devices — all adds labor and material costs that need to be priced correctly to protect margins.
Electrical subcontractors in particular are seeing larger scopes on new residential projects. A home that once required a standard electrical package now often includes smart panel integration, EV charging rough-in, whole-home surge protection, and structured wiring for home automation systems. Missing these items during the bid phase is an easy way to lose money on a job.
What This Means for Material Suppliers
Material suppliers serving the residential construction market are seeing a shift in product demand. Builders are now ordering smart-compatible devices in bulk — programmable thermostats, smart switches, structured wiring panels, and low-voltage brackets are becoming standard line items rather than special orders.
Suppliers who stock these products and can offer competitive pricing on volume orders are gaining a real edge. Builders working on tract home communities or multi-unit residential projects want consistency and availability. If your supply house cannot reliably provide smart home components, the builder will find one that can.
There is also growing demand for materials that support whole-home connectivity, such as in-wall conduit systems that allow future upgrades without opening walls. Forward-thinking suppliers are already stocking these products ahead of the wider market demand.
The Estimating Challenge
One area where many contractors are still catching up is estimating. Smart home rough-in and installation scopes are relatively new and do not always fit neatly into traditional estimating formats. Quantities are easy to miss, and labor rates for low-voltage and smart system work vary significantly from standard electrical work.
Contractors who rely on professional construction takeoff services have an advantage here. A proper quantity takeoff ensures that every wire run, conduit segment, device location, and panel requirement is counted and priced before the bid goes out. This kind of accuracy is what separates profitable contractors from those who consistently win bids and then struggle to make money on the job.
Looking Ahead
Smart home features are not going away. If anything, the technology is advancing faster than most builders can keep up with. Solar-ready construction, battery storage rough-ins, whole-home automation systems, and EV infrastructure are all becoming part of the conversation on standard new builds.
Contractors and suppliers who adapt early — updating their scopes, their pricing, and their product offerings — will be the ones who thrive as the market continues to evolve. The homes being built today are smarter than ever, and the businesses serving this market need to be too.
