Inventory of existing houses is predicted to rise slightly but remain relatively low for the next five years, according to 2025–2029 Housing Market Predictions published by U.S. News & World Report. That’s good news for electrical contractors performing residential work for new home builders. It also means more work related to updating existing homes. 

A couple of years ago, the electrical industry was abuzz with predictions for unlimited applications of smart technology and low-voltage work in homes. That may still apply for high-end dwellings, but plug-in Wi-Fi gateways have tamped down demand for low-voltage work in medium-level homes. And though loss of tax incentives is tempering the transition to alternative power generation sources, opportunities abound for contractors willing to take on the work. Smart and green is still the direction of the future. 

Harper Electric Inc.

Residential work makes up about 30% of the business mix for Harper Electric Inc., Ann Arbor, Mich.

“There’s a lot of stuff being tried here,” said Bill Engel, estimator/project manager for Harper Electric. “Ann Arbor is 25 square miles surrounded by reality.”

Engel is joking, but loosely translated, he means people are open to change and innovation in Ann Arbor, right down to experimental heating systems embedded in sidewalk cement. (This required installation of low-voltage power and ground-fault circuit interrupters.)

That was the case for one high-end home, typical of those Harper Electric aims to retrofit, but it’s also true for midlevel properties. 

Proximity to the University of Michigan makes for an all-in attitude toward transitioning to all-electric, Engel said.

“Mostly we’re doing higher-end home remodels, but we do some multiresidential, which requires a lot of electric load capacity because Ann Arbor is moving to eliminate gas for heating, ranges and water heaters in new construction,” Engel said. “We’re already seeing whole apartment complexes set up for all-electric.”

Not surprisingly, service sizes have increased in the last 10 years—from 100A to 200A to 320A—as elsewhere in the United States.

Electric vehicle charging station setups are frequently requested for residential and commercial projects. 

“The trend here started with residential,” Engel said. “It’s been a big hit around here, and it usually leads to installation of additional electrical service.” 

Despite a recent loss of EV tax incentives that prompted some cancellations of charging stations, Engel anticipates demand will stay strong. 

Much of the residential solar work is performed by solar installers and is not a predominant item for residential electrical contractors. “But when it gets more complicated, we do the wiring for the inverter and the shut-off,” Engel said.

The expense of heating homes in a colder northern climate and the consequences of power outages have caused local homeowners to ask for zoned heating and backup power generation.

“Often with zoned heating, we’re working with an HVAC company,” Engel said. “For backup power sources, which have become popular here, we usually work with gas or propane. We usually install a whole-house generator, but we do enable the systems to do load shedding—as in the car charger won’t operate when the generator is running—or it’s on a separate service to begin with, so it won’t be included with the backup generator.”

One of the biggest challenges Harper Electric faces in doing residential work is obtaining zoning permits for generators, a process that has become more involved and more costly. 

“But that’s just about everywhere,” Engel said. The company has little involvement in other residential systems.

In terms of lighting controls, “Other than occupancy sensors, we don’t install a lot of residential lighting controls here,” he said. 

And security companies have cornered the market for home security devices. He added that home building is requiring less building automation, and “more devices that can plug in—Nest, Ring Doorbell, Lutron (Caseta), etc.—and provide remote access via phone that allows people to turn lights on and off and check if the garage door is closed,” Engel said. “We assist people in setting up the controls, but many tech-savvy people are starting to do this on their own.”

Cattaneo Electric Co. 

With the housing crash of 2008, many contractors in DuPage County, Ill., stopped doing residential business, said Peter Cattaneo Jr., supervising electrician for Cattaneo Electric Co., Darien, Ill. Some closed altogether or switched their focus to commercial, industrial and data centers. 

Those who continue to handle residential work have gravitated to multiresidential properties, large luxury homes and condos, senior living facilities and communities for young adults with disabilities, Cattaneo said.

Cattaneo shares Engel’s observation that home automation in midlevel homes these days is less about low-voltage work or installing Cat 6 cable and more about creating points of connection for plug-in devices that can work together.

Still, for high-end properties, the story is different.

Cattaneo recalled a couple who moved from a multimillion dollar property in Chicago to a $2.3 million property in the suburbs.

 “After six months, the homeowner comes to realize half of his house doesn’t work,” Cattaneo said. “The canister lighting along the cabinets in the kitchen is all different colors. The zoned heating and lighting controls aren’t working. He’s having trouble switching things on and off. With a lot of these larger home systems, you really need guidance from an electrician and from an HVAC professional and a plumber to fix what’s going on.”

Cattaneo Electric is a member of PowerForward DuPage, which is the NECA/IBEW 701 Labor Management Cooperation Committee. The organization is making outsized efforts to work and connect with members of other trade groups.

The group coordinates an annual education and recruiting event directed at high schools to enlighten students, parents and guidance counselors about the advantages of careers in the trades. 

Representing a slow but steady climb to gain back residential work, PowerForward DuPage also works with local communities on setting local housing standards.

Responding in 2024 to a push to eliminate the use of natural gas for stoves, water heaters and furnaces, PowerForward estimated what it would take to build a house of the future with electrical support for solar power, an electric hot water heater, electric furnace and EV charging.

“All of that would have added about $20,000 to the cost of a $300,000 house,” Cattaneo said. “We worked with the DuPage County board on stretch codes, saying this would be the cost, and it would be too much. Then we went back and gave an estimate of what it would be just to install the conduit and pathways but not the actual equipment. We made the property ready for all-electric, but the cost, which turned out to be around $3,000, was much more affordable and doable.” 

Cattaneo believes stretch codes, which push energy-efficiency standards for projects beyond mandated local energy codes, are necessary to make progress in the transition to renewable energy, but negotiation is necessary to accommodate practical considerations. 

Standing behind these compromises, PowerForward came up with the Plus-5 program, which provides a five-year warranty on new home builds.

Branson Electric Inc.

Branson Electric Inc., Wildwood, Mo., performs electrical installations for “production homes,” or subdivision developments with homes ranging from 1,500 to 3,500 square feet in the St. Louis area. As with homes in northern Illinois and southern Michigan, typical smart technology installation that would apply for a luxury home—wiring of data lines, speakers, Wi-Fi controls, etc.—doesn’t happen here either. 

“We install circuit for a wireless access point to better use Wi-Fi signal—that’s about the depth we go for the majority of our customers,” said T.J. Branson, owner and president. “For anything more complicated, we would call in a trusted low-voltage expert.”

As Engel and Cattaneo seemed to suggest, what customers can afford drives what ends up inside of new midlevel homes. 

“Some customers want us to help with Wi-Fi controls, and some want to do this on their own later, after closing,” Branson said. “In the world we are in, people are buying aftermarket devices for homes. Young families want to put their money into square footage and worry about this later.”

The wireless access point is “basically a Wi-Fi-booster,” he said, noting devices such as the Lutron Caseta, which enable Wi-Fi communication between homeowners’ phones, tablets and computers and networked home electrical devices.

 “It’s more about basic wiring and one central wireless access point,” Branson said. “It’s become more efficient. You just need to change one device instead of installing a whole controllable system all over the house to give customers the control they want and can afford.” 

More challenging, he said, is keeping up with the National Electrical Code and International Residential Code for multiple jurisdictions. Branson is also involved in the effort to bring common sense considerations to local jurisdictions that vary widely when it comes to these ordinances and amendments.

 “We sit down and go through local ordinances and amendments with commissioners,” Branson said, who works with the Home Builders Association of St. Louis and Eastern Missouri. “And we try to negotiate things that are too costly. Plenty of jurisdictions don’t deviate and don’t want to listen to what we say, especially if they believe safety is involved, but it’s important to do this.” 

Branson Electric’s customer is the builder. 

“What matters to them is if we can get the codes right and the billing right for those codes,” Branson said. “We don’t make the rules, but we want to be able to match them wherever we are working.”

All three contractors are affiliated with training centers offering residential programs. Residential work provides basic training opportunities, and many residential electricians go on to achieve full inside wireman status.

Stanisic Vladimir / stock.adobe.com