Builders Shopping for New Products to Differentiate Their Homes

Today's home builders seek to include at least some advanced technology in their homes, according to 2004 Builder Survey, a new survey of 400 U.S. builders conducted by Parks Associates.

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Contact: Elizabeth Parks
Parks Associates
972 -490 -1113
E -mail: sales@parksassociates.com


Builders Shopping for New Products to Differentiate Their Homes

More than 60% of builders are looking for new products and capabilities, and 26% have a dedicated resource to evaluate new technology

December 14, 2004 Dallas, Texas - Today's home builders seek to include at least some advanced technology in their homes, according to 2004 Builder Survey, a new survey of 400 U.S. builders conducted by Parks Associates. Programmable thermostats, security systems, and zoned HVAC systems top the list of most frequently offered products, and over two -thirds of the builders surveyed offer computer networking, structured wiring, and central vacuum systems with their homes.

"As was reported by The Wall Street Journal (Dec. 7, 2004), builders are well into a new era in home building that encompasses much more than lumber, bricks, and granite countertops," said Bill Ablondi, director of channel research for Parks Associates. "Our research affirms this finding, indicating that over one -fourth of builders have employees actively evaluating new technologies for their potential both to boost sales and serve as differentiators. New technologies such as home networking offer great opportunities for manufacturers to get in on the ground floor of the digital -home trend."

In the Parks Associates survey, builders rate, with all basic considerations equal, which amenities make a difference in selling a house. They rank a large kitchen, a spacious master bath, and architectural elements the highest, with security systems and computer networking following and ranking significantly higher than a finished basement or a separate media room. Multiroom audio scores on a par with a separate playroom and significantly higher than a pool.

"For some time now, builders have been adding systems that enhance the digital infrastructure in their homes," said Tricia Parks, president of Parks Associates. "It began with structured wiring and entertainment systems and has now blossomed to take advantage of the growing adoption of broadband Internet access. Consumers are beginning to expect their new homes will not only be wired for communications and entertainment but also will include some of the basic hardware. A few decades ago washers and dryers became standard. Now multiroom sound systems, computer networking, and home theaters are becoming must -have appliances."

The study probes why builders offer, or don't offer, various products, as well as who they use to install the systems and if they are willing to partner with other firms, such as cable TV operators or utilities, to offer these systems. In addition, builders assess the additional value home buyers place on homes with structured wiring, security systems, and various entertainment system configurations.

Parks Associates' 2004 Builder Study also explores the factors that builders consider when selecting suppliers of non -structural products such as appliances and electronics. Name, reputation of company, and product quality outweigh pricing as top reasons builders select specific manufacturers' products.

For information about Parks Associates' 2004 Builder Survey, visit www.parksassociates.com or call 972 -490 -1113.

About Parks Associates: Parks Associates is a market research and consulting firm focused on all product and service segments that are "digital" or provide connectivity within the home. The company's expertise includes home networks, digital entertainment, consumer electronics, broadband and Internet services, and home systems.

Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start -ups through market reports, multiclient studies, consumer research, workshops, and custom -tailored client solutions. Parks Associates also hosts two executive seminars, both part of the Fall Focus series, and co -hosts CONNECTIONS™ (in partnership with the Consumer Electronics Association) each year. www.parksassociates.com.

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