According to a 2023 survey by the National Association of Realtors (NAR), 78% of homebuyers are willing to pay more for a home with smart technology, particularly security and energy-efficient features. As smart home adoption continues to rise, more homeowners are wondering: Does investing in smart technology actually increase home value?
The Growing Demand for Smart Homes
More homebuyers are prioritizing properties equipped with automation, energy efficiency, and security.
- A Coldwell Banker Real Estate study found that 63% of homebuyers want smart home technology already installed when purchasing a home.
- The Zillow Consumer Housing Trends Report indicates that homes with smart features can sell up to 30% faster than those without.
- Millennials and Gen Z, who make up a growing portion of homebuyers, value tech-integrated homes over traditional features.
Clearly, smart technology is a strong selling point. But which features add the most value?
Key Smart Home Features That Add Value
Not all smart home devices boost resale value equally. Here are the most impactful features:
1. Smart Security Systems
Security is one of the top priorities for homebuyers. Smart locks, video doorbells, and security cameras provide enhanced protection and convenience.
- Homes with smart security systems can see a value increase of 3-5%, according to a study by Security.org.
- Popular options like Ring doorbells, Nest security cameras, and smart locks allow homeowners to monitor and control security remotely.
- Buyers appreciate the peace of mind and modern convenience these systems offer.
Arlo Essential Spotlight Camera
2. Energy-Efficient Smart Devices
Homes with energy-saving features don’t just lower utility bills—they also attract eco-conscious buyers.
- Smart thermostats (like Nest or Ecobee) can reduce energy costs by up to 15% annually—a major selling point for buyers.
- Smart lighting and energy-efficient appliances contribute to long-term savings and sustainability.
- Many states offer rebates for energy-efficient smart upgrades, making them a cost-effective investment.
3. Home Automation and Convenience
Buyers love the idea of controlling lights, appliances, and even sprinkler systems from their phones.
- Voice-controlled assistants (Alexa, Google Home) are now a household staple, and integration with smart homes is becoming expected.
- Smart blinds, garage doors, and automated lighting create a seamless, futuristic experience that impresses buyers.
Investing in these technologies can set a home apart from the competition.
Philips Hue Play Gradient 65″ Smart TV Light Strip
How Much Value Do Smart Homes Actually Add?
While smart home technology can boost appeal, its effect on price varies.
- A study by Consumer Reports found that certain smart home upgrades can add up to 5% to a home’s resale value. (About $5000 for every $100,000)
- Homes listed with smart features in their descriptions tend to sell faster, according to real estate analysts at Zillow.
- However, the return on investment (ROI) depends on the local market—in tech-driven cities, smart homes may have a higher perceived value.
Potential Downsides and Considerations
Before investing heavily in smart upgrades, homeowners should consider:
- Upfront costs – While smart tech offers convenience, high-end automation systems can be expensive.
- Privacy concerns – Some buyers worry about data security with internet-connected devices.
- Compatibility issues – Older homes may require rewiring or upgrades to support smart tech.
While these factors don’t outweigh the benefits, they’re important to keep in mind.
Tips for Maximizing Your Smart Home Investment
Want to increase your home’s value with smart tech? Here’s how to do it right:
✔ Prioritize High-Impact Features – Smart security and energy-efficient devices offer the best ROI.
✔ Choose User-Friendly Systems – Buyers prefer simple, widely compatible technology.
✔ Highlight Smart Features in Listings – Mention smart upgrades in home descriptions to attract tech-savvy buyers.
So, does making your home a smart home adds value?
In most cases, yes—but the impact depends on the features installed and market demand. Smart security, energy-efficient devices, and automation make homes more attractive, sell faster, and can justify a higher asking price.
If you’re considering smart upgrades before selling, start with security systems and energy-saving devices, as these offer the highest return. And when listing your home, be sure to showcase its tech advantages—it might just be the factor that seals the deal!