As technology becomes more deeply integrated into everyday life, the real estate market is following suit. Smart homes—properties equipped with connected devices that control lighting, climate, security, and even appliances—are becoming increasingly popular. For buyers and investors alike, the question is no longer what is a smart home, but is it worth paying more for one?
The short answer: it depends. While tech-enabled properties offer convenience, efficiency, and curb appeal, their value as a long-term investment varies depending on several key factors.
What Makes a Home ‘Smart’?
A smart home goes beyond having a few gadgets. It’s a system of interconnected devices that can be managed remotely or programmed for automation. Common features include smart thermostats, video doorbells, integrated security systems, lighting controls, voice assistants, and energy monitors. Higher-end properties may include smart appliances, automated blinds, and full home entertainment systems.
These upgrades promise greater comfort, security, and energy savings—features that are especially appealing to younger, tech-savvy buyers. But do these benefits translate to financial value?
The Premium Price Tag
Smart homes often come with a higher initial cost due to the technology installed. Buyers may pay a premium of several thousand dollars for homes with integrated systems, especially if they’re professionally installed and part of a larger, seamless setup. While that premium may seem steep, it’s important to weigh it against potential savings and resale value.
Smart thermostats and lighting, for example, can reduce utility bills over time. Smart security systems may lower home insurance premiums. But the real financial return may come at resale—buyers increasingly expect some level of smart tech, especially in newer or high-end homes.
Are Buyers Willing to Pay More?
Studies show that tech-enabled features are influencing home buying decisions. According to research from Coldwell Banker, over 70% of millennials would be more inclined to buy a home if it had smart features. Additionally, homes with smart tech can stand out in a crowded market, potentially selling faster and at higher prices—particularly in competitive urban or suburban areas.
However, this isn’t a blanket rule. In more traditional or rural markets, smart home features may not carry the same weight, and buyers may not be willing to pay extra for them. The tech itself can also date quickly. A home wired with outdated systems may feel more like a hassle than a benefit if it requires costly upgrades.
Investment Strategy and Future-Proofing
If you’re investing in property with smart home features in mind, focus on tech that adds real value—energy efficiency, security, and universal usability. Avoid overly niche or complex systems that could confuse buyers or require significant upkeep.
Look for open platforms and compatibility with major ecosystems like Google, Amazon, or Apple, which are more likely to remain relevant. Smart tech that’s easy to upgrade or replace helps future-proof the investment.
Conclusion
Smart homes offer convenience and appeal, but whether they’re worth the premium depends on how—and where—you invest. In the right market, smart tech can enhance resale value and attract discerning buyers. The key is to focus on features with lasting value, keep systems current, and ensure that the tech enhances the home without overwhelming it. In today’s evolving market, a smart home can be a smart investment—when done right.