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CEA: Home Theater Needs Not Addressed

18 Jul, 2006 By: Erik Gruenwedel

Burgeoning new home construction has not parlayed into equally robust home theatrical installations, according to a recent report by the Consumer Electronics Association.

The report found that many homebuilders and custom electronics installers haven't done a good job communicating to homebuyers the advantages of multi-room audio, home theatrical and lighting control set-ups.

The average price of an installed electronics system was $6,700, $6,200 for a home theater set-up and $6,100 for lighting controls.

The report observed that more aggressive marketing by builders could have contributed to 1 million additional audio, home theater and custom lighting installations.

The CEA concluded that the overall number of installed custom electronic systems in existing homes had increased more than 10%, compared to just a few percent in new construction.

Home theater installations increased just 3% in 2005 from 8% in 2004 and multi-room audio systems rose 3%.

And the window of opportunity for customized home entertainment systems in new construction might be declining due to a projected 3.7% drop in new construction this year and an 8.1% reduction in 2007, according to the National Association of Realtors.

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