With its investment in modular builder Plant Prefab and an expansion of its smart home product suite, Amazon is further solidifying its presence in the housing industry.
Some home builders are moving toward incorporating smart home products and Amazon's products into their projects, while other real estate companies are anticipating an industry disruption. According to Zillow CEO Spencer Rascoff, "[Amazon] is one of the largest parts of the economy. [Real estate] is 15 percent of GDP that they’re not participating in. Historically, it’s had a lot of complexity and hasn’t been something they’ve wanted to do,” adding that eventually he will worry about Amazon's entry into the market, Yahoo Finance reports.
As digital-native Millennials and Gen Zers form families and look to settle down they’ll want their abode to offer a convenient, effortless experience. SoftBank recently announced a $400 million investment into San Francisco-based OpenDoor, which buys and sells homes online across 19 different markets in the U.S. It’s no surprise that one of Amazon’s next frontiers is residential real estate, especially considering a home is the costliest big-ticket item Americans will purchase in their lifetime.