From doorbells that record visitors to thermostats that learn your habits, smart home tech is becoming more than just a convenience—it’s a selling point. As more buyers come to expect connected devices and energy-efficient systems, homeowners are wondering if these upgrades pay off at resale.
While not every gadget guarantees a higher price, features that boost comfort, security, or utility savings can make a listing stand out in a crowded market. The real question is how much—and where—this technology is actually moving the needle on home values.
What Is a “Smart Home”?
A smart home is a house equipped with devices that connect to the internet or each other to automate and control household functions. In a smart home, you might control the thermostat, lights, or security system from a smartphone or voice command.
Smart home devices come in many forms:
- Smart lighting allows you to turn lights on or off (or even change colors) with an app or voice assistant
- Voice-activated assistants like Amazon Alexa or Google Assistant can play music, answer questions, and control other smart devices
- Smart security systems include video doorbells, internet-connected cameras, and motion sensors
- Smart appliances like refrigerators or washing machines can send alerts or be controlled remotely
Usually, a home is called smart if it has a few integrated devices (like a smart thermostat, security features, and a hub or assistant to control them). Some real estate companies have created certifications to label a property as a “Certified Smart Home” if it meets certain standards.
The Evolution of Smart Home Technology
Smart home technology has evolved from a niche novelty to a mainstream feature in a short time. A decade ago, very few homes had things like smart thermostats or app-controlled lights. In 2015, only about 3% of U.S. households had a smart thermostat device. Today, these devices are far more common. By 2021, roughly 40% of U.S. homes had a smart thermostat installed.
Overall, smart home adoption has climbed rapidly. As of 2023, an estimated 63 million homes in the U.S. were actively using some kind of smart home device, a huge jump from about 39 million smart-equipped homes in 2018. Nearly half of American households now use smart gadgets to control their lights, locks, thermostats, or other systems.
Why Smart Homes Are Becoming Popular
Smart devices are spreading quickly for several reasons:
- Practical benefits: They save energy, improve security, and add convenience. A smart thermostat can cut down on wasted heating or cooling when nobody’s home. The U.S. Department of Energy notes that using a programmable or smart thermostat to adjust temperatures just a bit for 8 hours a day can save about 10% a year on heating and cooling bills.
- Lifestyle appeal: Being able to say “Lock the doors” to a voice assistant or have lights turn on automatically feels modern and luxurious.
- Widespread internet access: The expansion of home Wi-Fi and smartphones laid the groundwork for the smart home boom.
- Pandemic effects: In 2020 and 2021, people spent more time at home and invested in home improvements, including smart features.
Smart Features in Real Estate Listings
Home sellers and real estate agents have noticed that smart home features can be a selling point. It’s now common to see phrases like “smart home,” “smart thermostat,” or “smart security system” mentioned in online home listings. Some real estate websites and brokerage firms allow buyers to filter searches specifically for homes with smart features.
Even without formal certification, highlighting smart gadgets in a listing description can attract extra attention. Zillow has analyzed millions of home sales and found that:
- Homes mentioning smart lighting sold about 7 days faster than expected on average
- Describing a house’s new LED lighting was associated with a 1.5% to 1.9% higher sale price
- Even a small detail like a “smart toilet” or touchless bathroom fixture was linked to homes selling for around 0.7% more than expected
What’s Included in the Sale?
When advertising smart features, real estate agents advise being clear about what gadgets are included in the sale. Some devices, like a wired smart thermostat or built-in security system, typically stay with the house. But other items might be taken by the seller unless specified. Experts suggest clarifying in the contract which smart home devices are included with the property.
What Buyers Want in Smart Homes
Home buyer surveys show that demand for smart home features is strong and growing. In one recent study, 77% of home buyers said they are interested in homes with smart technology. Features like smart security systems and thermostats top the wish list for many. A survey by Coldwell Banker found that 58% of buyers were most attracted to smart security devices, and 56% were drawn to smart thermostats.
Different Generations, Different Priorities
Different age groups value smart homes for different reasons:
- Younger buyers (millennials and Gen Z) often favor convenience and entertainment
- Older buyers (baby boomers or seniors) tend to care more about safety, security, and simplicity
Despite these differences, the overall interest crosses generational lines. A 2022 survey found that almost 90% of millennials are willing to pay more for a home with smart features, and even 65% of baby boomers said they would spend extra for an IoT-enabled property.
Financial Benefits
Another reason buyers want smart homes is the promise of saving money in the long run. According to a Redfin article, about 45% of homeowners said their smart home devices saved them an average of $1,100 per year through lower utility bills and insurance.
Many buyers now expect some level of smart capability in a home, just like they expect updated appliances or modern windows. The key for sellers is to include a few user-friendly smart upgrades that most people value, such as security, climate control, and lighting.
Do Smart Upgrades Increase Home Resale Value?
The big question for homeowners is whether investing in smart upgrades will actually boost their home’s resale value. The answer appears to be yes, but with some caveats. Not every gadget will return dollar-for-dollar value, but certain smart features can make a meaningful difference in sale price or marketability.
Research by the National Association of Realtors noted that IoT devices have been shown to raise a home’s resale value by up to 5% in some cases. On a $300,000 house, 5% would mean $15,000. However, that’s often an upper estimate assuming multiple desirable features and strong buyer interest.
Concrete examples from real estate data include:
- Smart lights and smart toilets corresponded to roughly 1–2% higher sale prices
- Homes with an outdoor “smart” entertainment feature sold for about 3% more than expected
- Homes mentioning “energy-efficient” or smart eco features can sell faster and sometimes at a premium
Which Smart Features Add the Most Value?
Not all smart devices automatically boost value – it depends on the device’s usefulness. Smart thermostats and security systems ranked as most likely to add value because almost everyone appreciates lower bills and a safer home. On the other hand, fancy smart entertainment systems or kitchen gadgets were less of a sure bet.
A Coldwell Banker survey found 44% of millennials would pay an extra $3,000 or more for a home with smart features, but very few buyers would drastically overspend just to have technology they could potentially install themselves. Smart upgrades contribute to a higher perceived value and quicker sale, but they’re usually just one part of a home’s overall value equation.
Energy Efficiency: A Major Selling Point
One of the most impactful areas of smart home tech is energy management. Smart energy features not only attract buyers – they also have a direct financial benefit through cost savings.
The most common example is the smart thermostat. These devices learn your routine and adjust temperatures automatically. According to the U.S. Department of Energy, using temperature setbacks for just part of each day can trim about 10% off heating and cooling costs. That’s hundreds of dollars saved in a year for many households.
With utility bills climbing and more emphasis on green living, a home that’s equipped to save energy has an edge. In a Zillow survey, 68% of homeowners said they want smart tech to make their home more energy-efficient. Efficient LED smart lights use far less electricity than old incandescent bulbs, and they often can dim or turn off automatically to avoid waste. Some smart homes even have smart window shades that close during the hottest part of the day to reduce air conditioning needs.
Environmental Appeal
A growing number of buyers look for eco-friendly or “green” home features. Smart thermostats and lighting contribute to a home’s overall energy profile, sometimes alongside bigger items like solar panels or high-efficiency appliances. When combined with smart home tools, the house becomes very attractive to cost- and eco-conscious buyers.
Security Systems: Peace of Mind Sells
Another highly influential smart home category is security and safety. Homes with advanced security features often appeal to buyers and can command higher prices because they provide peace of mind.
Smart security features have become much more prevalent in recent years. One survey found that 34% of homeowners have a smart video doorbell and a similar percentage have smart security cameras. Buyers consistently rank security as one of the top reasons they value smart home tech, with 90% of people saying home and family security was the top reason they would purchase a smart home system.
If a house for sale is already outfitted with features like a doorbell camera, smart locks, and window sensors, it can reassure potential buyers that the home is safe and well-equipped. Parents of young children, elderly buyers, or those in higher-crime areas especially value built-in security measures.
Insurance Benefits
There are even insurance benefits: some insurance companies offer lower premiums for homes with monitored security systems. A smart system that the new owner can take over might qualify for such discounts, effectively putting money back in their pocket over time.
While appraisers don’t always assign a concrete dollar value to security features, their impact is emotional and practical – which can translate into a buyer being willing to pay more.
Voice Control and Home Automation
One of the flashiest aspects of a smart home is the ability to control things with your voice or through automation routines. Devices like Amazon Echo (Alexa), Google Nest speakers, or Apple’s Siri create a central hub for voice commands.
Voice automation lets people adjust lights, thermostats, music, or ask for information hands-free. When buyers walk into a home with a voice-controlled system demo, it can leave a strong positive impression.
Automated routines are another convenience factor. Smart homes can be programmed so that multiple things happen with one trigger. For example, saying “Good night” to a smart home system might lock all doors, turn off lights, adjust the thermostat, and arm the security system.
Simplicity Is Key
The key for adding value through voice tech is to ensure the system is simple to use. A house that requires a complicated series of apps and passwords for different devices can turn buyers off. On the other hand, a home that’s set up with a unified system and has clear instructions can impress buyers, who see it as an upgrade that will make their life easier from day one.
Future Outlook: Smarter Homes and Market Trends
Looking ahead, smart home technology is expected to become even more influential in real estate. The global smart home market was valued around $81 billion in 2022 and is forecasted to soar to over $338 billion by 2030. By the end of this decade, smart features might be as commonplace as stainless-steel appliances or granite countertops.
The number of smart homes worldwide is projected to reach into the hundreds of millions, with estimates suggesting over 400 million smart homes globally by 2030.
Changing Expectations
As smart home devices become standard, homes without any smart features might begin to be seen as outdated, similar to how a home without a dishwasher or without air conditioning might be at a disadvantage in some markets today. Realtors might start encouraging sellers to do a “smart home upgrade” before listing, the same way they might suggest a fresh coat of paint.
Another trend on the horizon is deeper integration of smart homes with other systems, like the electric grid or home insurance telematics. Standards like the new Matter protocol (a technology standard that aims to make devices from different brands work together seamlessly) will likely make smart homes more user-friendly and interoperable.
Future Valuation Models
In the future, appraisals and home valuations might formally take smart features into account. Right now, there isn’t a widely used formula for adding value for smart features. But as data accumulates on how these features impact sale prices, valuation models could start factoring them in.
The U.S. Department of Housing and Urban Development (HUD) has explored smart home tech in the context of assisted living and accessibility, since these devices can help older or disabled residents live more independently.
Conclusion: The Evolving Smart Home
The definition of a “smart home” will continue to evolve. Future smart homes may include things we’re only beginning to see now: like smart health sensors, advanced AI that can manage home energy usage in real-time, or integration with smart cities.
As these developments unfold, homes that stay on the cutting edge may enjoy value boosts for being ahead of the curve. However, the core principle will remain: buyers want features that make the home more comfortable, efficient, and safe. Technologies that deliver on those needs are likely to have a positive influence on home values in the United States for years to come.
References
- Best Home Improvements to Increase Value – Zillow
- Smart thermostats inadvertently strain electric power grids – Cornell Chronicle
- Smart Homes Can Help You Grow Your Business: Here’s How – National Association of Realtors
- How Smart Technology Can Help Homes Sell Faster – Pro Builder
- Five DIY Projects That Could Help Add Value to Your Home – Zillow (Press Release)
- The New Way to Stage a Home: Smart Home Staging – Coldwell Banker Blue Matter
- One in eight U.S. homes uses a programmed thermostat with a central AC unit – U.S. Energy Information Administration
- Energy Efficient House Tour – U.S. Department of Energy
- The Mythical Value of Smart Homes – NAR Realtor Magazine
- How Home Automation Can Increase Your Property Value – Redfin
