Do Smart Home Features Increase Home Value? (2024)

Smart home technology is growing rapidly, and global consumer spending on smart homes systems is expected to exceed $191 billion by 2028, according to Strategy Analytics. By 2028, 550 million homes worldwide, or 24% of all households, will have at least one type of smart system installed.

According to Tech Jury, 81% of consumers say they are more likely to purchase a new home that has smart technology and 43% of Gen Z homebuyers said smart home capabilities were highly important, whereas only 15% of Baby Boomers said the same.

Do Smart Home Features Increase Home Value? (1)

What Qualifies As A Smart Home?

To qualify as a “smart home” the home should be equipped with “network-connected products (via WiFi, Bluetooth or similar protocols) for controlling, automating and optimizing functions such as temperature, lighting, security, safety or entertainment, either remotely by a phone, tablet, computer or a separate system within the home itself.”

This comes from CNET, who recently partnered with Coldwell Banker to develop an industry standard.

The home needs to have either a smart security feature that controls access or monitors the property, or a smart temperature feature. It should also have at least two features from this list:

  • Smart refrigerators/washers/dryers
  • Smart TVs and streaming services
  • Smart HVAC system, fans or vents
  • Smart outdoor plant sensors and watering systems
  • Smart fire/carbon monoxide detectors and night lights
  • Smart security locks, alarm systems or cameras
  • Smart thermostats

Dish Network has a Smart Home Setup Guide if you want to learn how to add these features to your home.

What Qualifies A Feature As Smart?

With plenty of home products to choose from, here are a few of the key elements that qualify a product as “smart”:

    Connected Devices

    A smart home includes various devices connected to a network, often via Wi-Fi. Common smart devices include smart thermostats, lights, locks, cameras, doorbells, speakers, appliances, and more.


    Smart homes use automation to perform tasks automatically or based on specific conditions or schedules. For example, lights can turn on and off based on motion sensors or schedules, thermostats can adjust temperatures based on occupancy or preferences, and blinds can open and close with the rising and setting of the sun.

    Remote Control

    Homeowners can control and monitor smart devices remotely using smartphones, tablets, or computers. This allows for real-time adjustments and monitoring even when you're not at home.

    Voice Control

    Many smart homes incorporate voice assistants like Alexa, Siri or Google Assistant, allowing homeowners to control devices through voice commands.


    Smart devices from various manufacturers often work together seamlessly within a smart home ecosystem. This is facilitated by common communication protocols and platforms like Apple HomeKit, Google Home, or Amazon Alexa.


    Smart home security is a critical aspect. It includes features like smart locks, video doorbells, motion-activated cameras, and security systems that can be monitored and controlled remotely.

    Energy Efficiency

    Smart homes often prioritize energy efficiency. Smart thermostats optimize heating and cooling, and smart lighting systems reduce energy consumption by adjusting brightness based on natural light and occupancy.


    Home entertainment systems, including smart TVs, speakers, and streaming devices, can be integrated into a smart home for seamless control and automation.

    Health and Wellness

    Some smart homes incorporate health and wellness features, such as fitness trackers, health monitors, or even air quality sensors to enhance homeowners well-being.

    Data and Analytics

    Smart homes can collect and analyze data about energy usage, device activity, and more. This data can help homeowners make informed decisions about their home and lifestyle.

Does a Smart Home Increase a Home’s Value?

Smart home technology can definitely add to market value. Appraisers make what they call “adjustments” when they compare tech-enabled homes with similar but tech-deficient houses. Smart homes command higher prices and may be easier to sell as a result.

According to Arizona Appraiser Steve Leavitt, "While smart home technology can add to the value of your home it is important that the type and extent of the automation does not become an over improvement for the home being upgraded. For instance, full home automation in a small starter home in an inexpensive area may be something a potential buyer likes but might not be able to afford or be willing to pay for."

The key is having smart products installed and functioning before you list your home, because most buyers don’t want a pre-wired home that still needs products installed.

Other Ways To Increase Home Value

If you have time for additional home projects, lighting can be used to not only make a property more aesthetically pleasing, but it can also work alongside the current structure to improve the space in terms of usability and functionality and can bump up the value of your property.

In addition, these inexpensive home improvements can really pack a wallop.

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Do Smart Home Features Increase Home Value? (2024)


Do Smart Home Features Increase Home Value? ›

Does a Smart Home Increase a Home's Value? Smart home technology can definitely add to market value. Appraisers make what they call “adjustments” when they compare tech-enabled homes with similar but tech-deficient houses. Smart homes command higher prices and may be easier to sell as a result.

What actually increases the value of a home? ›

Factors that can increase your home or property value

Nearby amenities, local laws, street art, and more can also increase your home's value — without impacting your homeowners insurance. While remodeling is one quick way to add value to your home, it can cost you when you update your home insurance policy.

How to increase home value by $50,000? ›

Adding $50K in Value to Your Home: Top Strategies for Sellers
  1. Curb Appeal Matters. First impressions count. ...
  2. Upgrade the Kitchen. The kitchen is often the heart of the home. ...
  3. Bathroom Remodel. Bathrooms also hold great value. ...
  4. Energy Efficiency Improvements. ...
  5. Fresh Paint and Flooring. ...
  6. Professional Staging. ...
  7. Proper Pricing Strategy.
Aug 28, 2023

Does a Ring doorbell increase home value? ›

People are willing to pay more for homes outfitted with smart home devices like video doorbells, smart lights, and smart thermostats.

Is it worth it to have a smart home? ›

Q: Do smart home devices have high ROI? A: Not only can smart devices save you money through energy savings and potential home insurance rate reductions, but they can also increase the value of your home when it's time to sell. Most sellers of smart homes realize 50% returns on their investment.

What is the #1 thing that determines the value of a home? ›

Location is the cornerstone to a home's value. You can modify a house to fit your needs, but the location will always stay the same. The location of a home and its proximity to desired resources are often the most important deciding factor for a buyer.

What adds most value to a property? ›

Home Improvements That Add Value
  • Kitchen Improvements. If adding value to your home is your goal, your kitchen is an excellent place to start. ...
  • Bathroom Improvements. Updated bathrooms are key for adding value to your home. ...
  • Lighting Improvements. ...
  • Energy Efficiency Improvements. ...
  • Curb Appeal Improvements.
Mar 28, 2024

What adds $100,000 to your house? ›

Consider adding a family room, an additional bedroom, or even a home theatre to make the most of the space. Update your landscaping: A well-manicured lawn and beautiful landscaping can add curb appeal and value to your home. Consider planting some flowers, shrubs, and trees to enhance the look of your property.

What adds the most resale value to a house? ›

Projects That Boost Your Home's Value
  • Remodel the kitchen. Updates to the kitchen pay off. ...
  • Upgrade the appliances. ...
  • Boost the bathrooms. ...
  • Remodel the attic or basem*nt. ...
  • Get decked out. ...
  • Boost curb appeal. ...
  • Improve energy efficiency.

Do smart thermostats add value? ›

As you can see, devices such as smart thermostats, smoke detectors, door locks, lighting, and solar panels, can increase the value of your property. But not all devices will have the same impact. Ultimately, the investment in smart home technology can pay off in both the short and long term.

Do dimmer switches increase home value? ›

4. Lighting is key. Lighting is a very substantial component in influencing the vibe of a home. The ability to adjust the lighting in a room will help your home appeal to a wider range of prospective buyers, and elements like dimmer switches and accented lighting features are very helpful.

Can I take my Ring doorbell when I sell my house? ›

How to leave your Video Doorbell(s) or Security Camera(s) behind when moving. If you want to transfer a Ring device to a new owner, you must remove the device from your Ring app to transfer ownership. You cannot remove a Ring device on A device must be removed from the Ring app.

Is a smart home a luxury? ›

Smart homes, especially within the luxury market, have become synonymous with connected devices and the Internet of Things (IoT). They offer convenience, security, and energy efficiency, all accessible via smartphone.

How expensive is it to have a smart home? ›

These systems can vary wildly in cost depending on brand specifics, homeowner preference, and home size, but typically range anywhere from $250 to over $10,000. The wide range in these figures comes from the highly customizable nature of smart homes.

Are smart homes still popular? ›

Consumer spending on smart home technology is steadily increasing. In 2022, it's estimated that global consumers will have spent $135 billion on smart home systems. By 2025, that number is estimated to rise to $170 billion (that's a 26% growth rate.)

What is the biggest factor that causes home to increase in value? ›

Livable space is what is most important to buyers and appraisers. Bedrooms and bathrooms are most highly valued, so the more beds and baths your home offers, the more your home is generally worth. However these trends are very locally specific. See our blog on renovations that can improve the value of your home.

What exactly does an appraiser look for? ›

The appraiser will be looking at your home's features, age and condition, then compare it to other similar homes in the area and what they sell for. Because your home's value is based on the value of similar homes in the area, the local market will have a big impact on your appraisal.

What depreciates the value of a house? ›

Factors that devalue a house include too many similar listings in the market, adverse neighborhood conditions like noise or light pollution, and the quality of local schools.

Does a new water heater increase home value? ›

Upgrading to a new, high-efficiency water heater can make a big difference in the value of your home. Like with HVAC systems, modern water heaters are designed with efficiency in mind. New water heaters can offer better performance, faster hot water delivery, and more energy savings.

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