According to various news sources, Amazon through its Alexa fund has invested in Planet Prefab, a designer/ builder of custom and stock prefabricated homes. Although the amount of Amazon’s investment was not disclosed, Planet Prefab received a total of $6.7M including funds from Obvious Ventures, a technology fund. This follows Amazon announcing in May a partnership with Lennar Corporation, one of the nation’s largest homebuilders, to equip model houses with devices controlled by Alexa.
For Amazon, having voice-controlled devices installed in homes while they’re being built could address how to bring together a bunch of Internet connected devices into a rational experience that makes economic and technical sense. In other words, the typical pre-planning that goes into designing a new home could logically and does frequently include smart devices. Whether a stick built on-site construction or prefabricated home, the ability to offer home buyers customized built- in technology could eventually be the one of the ways that new homes are personalized to each customer's individual needs.
This brings up several on-going issues that continue to be worked as smart home technology becomes more mainstream. The first is serviceability; i.e.- does the technology improve the overall experience or is it simply a distraction. A smart TV may be one thing, or a security system that lets you see who is at the door from any mobile device, while other devices may still be technology looking for an audience.
Second, the economics of the technology may limit demand. Devices like Alexa offer one of the best paths to easily interconnect devices, but questions of longevity, security, and service are there. Wired smart panels, whole house wireless networks, and other technologies will add to the purchase price. Many of us who bought homes with pre-wired smart panels and Cat 5 outlets saw this lose relevance as wireless took control.
Third, expansion and upgrade will be top-of mind for most home buyers. Although, companies like to suggest that people can order a customized home with integrated technology similar to the way someone would choose features on a new car, this over simplifies the decision-making process. When I am tired of its features or they become obsolete, I can trade my car in. But what do I with my house? There is no used house market in the same sense as a used car, where I understand I am buying something that is planned towards obsolescence (i.e.- the junk yard). Homes are expected to increase or at least maintain their value and therefore we need to carefully consider how to continue to be design and technology relevant not only today but for many years in the future.