What Does it Mean? What’s in it for Me?

With the advent of “Smart” technology, the phrase “Internet of Things” has become part of our lexicon. In its simplest form, the Internet of Things (IoT) refers to the connection of everyday devices to the Internet, allowing them to send and receive data. These devices can “learn” based on the user’s behavior, or provide the user with real-time information that can be used to make adjustments remotely.  

The IoT extends beyond computers or smart phones. Consider watches pulling data from a smart phone; refrigerators telling homeowners when they are out of milk; and even dog collars that can monitor a pet’s health. Products such as FitBit, Nest home thermostats, and Amazon’s Echo are popular examples.

Gartner, an information technology research and advisory company, predicts that 6.4 billion connected devices will be in use in 2016, up 30 percent from 2015. That means that 5.5 million new things are connected to the Internet each day, with an estimated $235 billion in annual spending. With such growth, the impact on real estate could be significant. Smart Home technology, with devices such as locks, HVAC controls, lighting, appliances, garage openers and security systems, is already predicted to be one of the three of the biggest technologies to impact real estate (the other two are virtual reality and predictive analytics), according to Sean Blankenship, chief marketing officer for Coldwell Banker. Blankenship says that an estimated 65 percent of home shoppers are asking about Smart Home technology and nearly half of all homes will have some form of it by the end of 2016. 

According to Business Insider, here are a few of the most popular items in the Smart Home space. 

NEST
An early player in the Smart Home space, with its Learning Thermostat, Nest has expanded its reach to include other Smart Home products. Nest Protect is a sleek wifi-connected smoke and carbon monoxide detector that will send alerts to a Smartphone. A convenient “Pathlight” feature will sense when someone is walking in the dark, then provide a light.
Another popular Nest product is the Nest Cam. This high-res wireless security camera can be controlled from a Smartphone. It sends alerts if it senses something suspicious. Footage can be saved to the cloud.

AMAZON ECHO
The Echo is a home version of Siri or Google Now. It comes in the form of a Bluetooth speaker, but is much more powerful. From anywhere within speaking distance, the Echo can stream or play music, set alarms, search the web, provide a weather report, and offer calendar reminders.

PHILIPS HUE
The Hue family of devices is the face of the smart lighting concept, allowing easy adjustment of room lighting, color and mood from an app. The Hue, which is installed like a traditional lightbulb, can be controlled by the Amazon Echo, adding even more versatility through connected systems.

ROOMBA 
These circular semi-autonomous robot vacuums are getting even better. Now users can set cleaning schedules and preferences from the Roomba app!

AUGUST SMART LOCK
The easy-to-install August allows for remote control of door locks. The lock can be set to open and unlock hands-free. With the optional August Connect hub, the lock can allow specific people into the house, even when the homeowner is absent.

SENTRILOCK
NVAR offers Bluetooth-enabled Sentrilock lockboxes. Using the SentriSmart app, Realtors® can assign and un-assign boxes from listings, and monitor who goes in and out of a listing. 

All forecasts predict that these trends will not only stick but that they will become more widely adopted in the future.  Homes need to have correct wiring and networking to accommodate these devices. While such devices have transformed the workplace, the trend is clear that they are transforming the way people live in their homes.