Future-Proof Buildings Need Smart Strategies, Not Just Intelligent Tech

• People behind the bots: AI is becoming standard in smart buildings, but success depends on data quality, clear strategy, and human oversight.

• Senate gossip: A group of U.S. senators warned that the proposed Compass Anywhere brokerage deal could harm competition and home buyers.

• House arrest: KB Home’s latest quarter reflects a housing market moving more slowly as buyers hesitate under persistent affordability pressure.

• Multifamily outlook 2026: Demand will be steady in 2026, but margins are thinner and execution matters more than ever. Sign up

Perspectives

Future-Proof Buildings Need Smart Strategies, Not Just Intelligent Tech

AI is rapidly becoming standard infrastructure in modern buildings, driven by its ability to reduce operating costs, improve resident satisfaction, and support more proactive management. But as adoption accelerates, the real differentiator is no longer the technology itself. It is the strategy behind it. Too many building operators are jumping straight to dashboards and tools without first addressing the quality, structure, and interoperability of the data that AI depends on. Without that foundation, even the most advanced systems risk producing costly and disruptive outcomes.

Incomplete, siloed, or poorly contextualized information can undermine automation, distort decision-making, and create operational blind spots. AI’s value expands when it is aligned with broader objectives such as sustainability, compliance, and transparency. Predictive analytics, energy optimization, and proactive maintenance only deliver long-term value when teams understand how these capabilities support defined business goals, and when governance frameworks ensure privacy, regulatory compliance, and explainability.

Equally important is the evolving role of people. AI cannot replace human judgment, and its limitations make oversight essential. Facility teams must be equipped to interpret insights, intervene when systems fail, and continuously refine performance through clear KPIs and regular audits. The future of smart buildings will not be determined by algorithms alone, but by how effectively operators blend technology, data, and human expertise into a resilient operating model.

Overheard

Federal Scrutiny of Compass Deal Highlights Growing Concern Over Real Estate Market Power

A group of bipartisan U.S. senators sent a letter to federal regulators saying a proposed deal that would expand Compass’s brokerage services under a model called Compass Anywhere could hurt competition and ultimately raise costs for home buyers and sellers. They argue that the deal might allow a large brokerage to leverage its data and market footprint in ways that could squeeze smaller competitors and reduce consumer choice. The senators urged regulators to take a hard look at competition and transparency issues before approving the transaction.

The concern centers on scale and data. Compass has grown rapidly in recent years and already commands a significant share of listings and agent relationships in many markets. Under the Anywhere model, the argument goes, Compass could use proprietary data gathered across its platforms to underprice competitors, optimize lead flows to favored agents, and limit access to information that independent brokerages rely on to compete. Critics say that would weaken competitive pressure on commission rates and home pricing services, leaving buyers and sellers with fewer choices and potentially higher transaction costs.

Heightened regulatory scrutiny of brokerage consolidation reflects deeper unease about the concentration of market power and the role of data in real estate transactions. If regulators respond by tightening approval conditions or even blocking the deal, it could slow similar large-scale brokerage integrations. Furthermore, the emphasis on consumer harm and choice could push brokerages to rethink how they share data and maintain fair competitive access. A deal that appears to favor one large national player at the expense of smaller firms could drive renewed calls for standards around data portability, transparency and commission practices, ultimately reshaping how brokerage services are delivered and how value is distributed across the residential sector.

KB Home Earnings Report Shows Home Construction Remains Tepid

KB Home’s latest results reflect the unease that has dogged much of the U.S. housing market this year. The company delivered significantly fewer homes compared with its year-ago quarter, reporting a notable reduction in net income. Homebuilders across the board have been grappling with slower sales, longer selling cycles and constrained lot inventories, but KB Home’s figures underscore how these trends are squeezing both volume and margins in real terms as buyers wrestle with high borrowing costs and tight affordability.

Mortgage rates remain elevated compared with historical norms, dampening buyer enthusiasm and pushing many potential purchasers into a wait-and-see mode. KB Home’s average selling price softened in recent months, and cancellations ticked up, suggesting that buyers are increasingly sensitive to payment levels and less willing to absorb premiums in a market where comparable resale options and rental alternatives exist. For a builder whose business depends on converting signed contracts into closings, that combination of slower absorption and pricing pressure directly tightens profitability.

KB Home’s results are a reminder that housing market stagnation is not just a headline. Builders are a bellwether for underlying demand, and softer results like these can reverberate across sectors, from lot and land valuations to mortgage origination pipelines. If builders remain cautious in releasing new inventory, and if buyers continue to hesitate at current payment levels, multifamily and rental sectors may see continued inflows as households delay homeownership. At the same time, institutional investors tracking residential development performance and housing starts may need to adjust expectations for returns and timing as market lethargy persists, potentially reshaping capital allocation between new home delivery and alternative real estate strategies.

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Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

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