Earlier this week, Google shelled out $3.2B for Nest Labs Inc., creator of internet-connected “learning thermostat” that learns to cool and heat homes to suit the needs of the inhabitants.
Why would a search engine care about heating our homes?
Well, when our Internet-connected gadgets and home appliances all learn to talk to each other, Google wants to see the data. Accurate data means even more targeted advertising, the company’s primary source of revenue. Not to mention, other organizations will eagerly pay a pretty penny (okay, millions) to Google for information.
By 2020, more than 26 billion objects will be connected to the Internet, not including personal computers, smartphones, or tablets. That’s 30 times more than the 900 million internet-connected things in 2009. (According to research firm Gartner, Inc.)
How is this relevant to real estate investors?
Builders, developers, and flippers must have one eye on the current expectations of its market, while keeping the other eye on the future of The American Home. This means incorporating more “smart” features in existing buildings, while anticipating what buyers will want to see in new construction homes.