Smart home technology adds 3% to 5% to your property value. That's $15,000 to $25,000 on a $500,000 home.
The data comes from Consumer Reports and industry studies, and it's consistent across multiple sources. Smart security systems perform even better—they can add up to 5% to your home's value. Smart thermostats typically add 3%.
78% of homebuyers will pay more for a home with smart devices. Not might pay more. Will pay more.
| Buyer Demographic | Willing to Pay More | Additional Notes |
|---|---|---|
| All Homebuyers | 78% | 70% actively looking for smart homes |
| Millennials | 77% | Most tech-savvy buyer group |
| Baby Boomers | 65% | Growing interest in security features |
| Millennial Renters | 86% | Average 20% rent premium |
These numbers tell a clear story. Smart features aren't nice-to-have anymore. They're what buyers expect.
Not every smart gadget is worth the investment. Here's what the data shows:
| Smart Feature | Value Increase | Average Cost | Key Benefit |
|---|---|---|---|
| Smart Security Systems | Up to 5% | $500-$1,000 | 81% of buyers prefer pre-installed |
| Smart Thermostats | 3-5% | $200-$500 | 10-15% energy savings |
| Smart Lighting | 2-3% | $500-$1,000 | 50% energy reduction |
| Home Automation Hub | 3-5% | $1,000-$3,000 | Integrated control of all systems |
The key with home automation? Systems that work together, not random disconnected devices.
Smart homes sell faster. In competitive markets like Austin, homes with smart technology have a 40% greater chance of selling quickly at a higher price.
Why does this matter? Average days on market affects your final sale price. Every week your home sits unsold increases the chance you'll need to drop the price. Smart features help avoid that.
The rental market data is pretty impressive. 86% of millennial renters will pay more for smart apartments. The average premium? 20% more in rent.
For multifamily properties, smart home technology creates a 3-5% rise in valuation with an average ROI of 30%.
Think about that. A 30% ROI. That's better than most stock market returns.
The global smart home market was worth $127.67 billion in 2024. By 2034? It's projected to hit $1.4 trillion.
That's not a typo. Nearly 1,000% growth.
| Year | US Smart Homes (millions) | % of US Homes |
|---|---|---|
| 2025 | 77.05 | ~52% |
| 2026 | 84.92 | ~57% |
| 2027 | 93.59 | ~68% |
By 2027, over two-thirds of US homes will have smart devices.
Location affects ROI significantly. In tech-forward markets like San Francisco or Austin, the premium for AI-integrated features can reach 7-10%.
More traditional markets? Same features might yield 2-5%. Still worth it, but adjust expectations based on your area.
Based on the data, here's the practical approach:
Do This:
Skip This:
DIY is fine for some things. A smart thermostat? Sure. But comprehensive systems need professional installation. Why?
Buyers can tell the difference. A professionally installed system commands a higher premium because buyers trust it will actually work. They don't want to inherit your weekend project.
Homes with energy-efficient features can see value increases up to 38% in some UK markets. The US market isn't quite there yet, but the trend is clear.
Smart thermostats that save 10-15% on energy bills. Smart lighting that cuts electricity use in half. These aren't just selling points—they're real money in buyers' pockets every month.
Here's the math: If your home is worth $400,000 and you spend $5,000 on smart home upgrades that increase value by 3%, you've added $12,000 in value. That's a $7,000 profit.
But timing matters. Planning to sell in the next 2-3 years? Focus on the high-ROI items. Staying put for 5+ years? You can invest in more comprehensive systems and enjoy them while building equity.
Smart home technology pays off. The numbers are pretty clear on this. Buyers want it, will pay for it, and homes with it sell faster.
Start with security and energy efficiency. Those deliver the best returns consistently. Add integrated control systems if your budget allows. Skip the gimmicks.
The market is moving toward smart homes whether individual homeowners participate or not. In five years, homes without any smart features will be like homes without central air conditioning—technically livable, but notably outdated.
Your move? Pick one or two high-ROI improvements and start there. A smart thermostat and video doorbell. Under $1,000 invested. Potential return of several thousand when you sell. Plus you get to use them in the meantime.
The data supports making these investments, and the trend shows it's only going to become more important over time.