Is Investing in Smart Home Technology Worth It?

Kim Pampanga  |  October 1, 2023

Is Investing in Smart Home Technology Worth It?

The adoption of smart home technology, which uses of the Internet of Things (IoT) within the home, has surged for homeowners, investors, and property management companies. From enhancing home security to boosting energy efficiency, these devices offer a plethora of benefits. Yet, homeowners often debate with a fundamental question: Does the investment truly pay off?


Smart Home Devices

Types of smart home devices can vary between temporary and permanent installations. For the purpose of this article, we will focus on permanently fixed smart home devices that are transferred with the ownership of a property. 

Smart Security Systems

The U.S. sees about 2.5 million home burglaries annually. To combat this, smart security tools like cameras and locks have gained popularity. Not only do they bolster home security, but they can also lead to reductions in home insurance premiums. 

Smart Thermostats

As utility costs increase and climate change increasingly impacts the world, energy management is vital in modern homes. While traditional thermostats offer limited control, their smarter counterparts, with adaptive capabilities, lead to significant energy savings. They adjust heating and cooling based on learned patterns, providing homeowners with efficient energy use. Smart Thermostats can provide value to homes by not only adding resale value but reducing regular utility expenses. 

Smart Appliances

Among all smart devices, appliances stand out for their ROI. According to House Digest, smart appliances tend to yield an ROI approximately 11% higher than conventional ones. These devices, encompassing everything from refrigerators to ovens, are designed for energy efficiency and convenience. 

Smart Lighting

Smart LED lights offer more than just aesthetic appeal. Their energy-conscious design, coupled with remote operability, translates to tangible savings. Furthermore, these lights last significantly longer than traditional bulbs, making them a long term cost-effective choice.


Home Valuation and Smart Devices

The integration of smart devices does affect a home's resale value. While determining an exact value increase is tricky due to factors like location, size, and appraisal methods, a trend is evident. Home automation costs range from $2,000 to $6,000 on average, with upscale enhancements surpassing $10,000. However, homes with smart integrations, when marketed correctly, can fetch prices 3% to 5% higher than those without. This increase is attributed to buyers' willingness to pay a premium to avoid future installation hassles. For instance, a $400,000 property could see its value rise by $12,000 to $20,000 post smart tech integrations.


Smart home technology, while an upfront investment, have immediate benefits, from energy savings and enhanced security to potential insurance rate reductions. Moreover, when selling, homeowners can expect a ROI, especially with smart appliances. Potential buyers, aware of the convenience and future savings associated with such technology, often prefer properties equipped with these devices.

One aspect of smart home technology to keep in mind is that the rapid evolution of technology may render some devices obsolete sooner than anticipated. However, the immediate benefits and potential for increased property value make a compelling case for homeowners to consider integrating smart home technology.


Recent Blog Posts

Stay up to date on the latest real estate trends.

When Should I Upgrade My Windows?

Valeria Kharchenko  |  November 1, 2023

Old windows can cause high energy bills, but also can lead to health hazards such as moisture and mold.

Easy Home Upgrades That Make Your Home Look Brand New

Paige Yates  |  November 1, 2023

We all want our homes to look nice, but major renovations can be expensive. Fortunately, tere are plenty of easy and affordable projects that can make your home look b… Read more

Should You Upgrade Your HVAC This Winter?

Mallory Hanig  |  November 1, 2023

As temperatures drop and heating bills rise, you may be wondering if now is the time to replace an aging, inefficient HVAC system.

Monthly feature

Best Boston Home Upgrades that Boost Value

Taylor Yates  |  November 1, 2023

Boston is one of the oldest major cities on the East Coast, home to many charming historic homes ripe for modern touches. However, not all of them are living in the 21… Read more

Does Adding Square Footage Give You the Best ROI when You Sell?

Paige Yates  |  October 1, 2023

Does extra space actually give you the biggest bang for your buck?

How to Maximize Curb Appeal

Mallory Hanig  |  October 1, 2023

First impressions matter, whether it's a first date or a job interview. The same principle applies when selling your home.

Is Investing in Smart Home Technology Worth It?

Kim Pampanga  |  October 1, 2023

The adoption of smart home technology, which uses of the Internet of Things (IoT) within the home, has surged for homeowners, investors, and property management compan… Read more

Monthly feature

How to Increase Your Home Value

Taylor Yates  |  October 1, 2023

In the bustling city of Boston, where historic charm meets modern living, real estate is a hot commodity.

Spooky Season in Boston!

Valeria Kharchenko  |  September 1, 2023

As the autumn wind graces the cobblestones of Boston, it's a great time to welcome the charm of the spooky fall season.

Work With Us

We bring decades of experience to transactions large and small and treat every client with the high level of service they deserve. Whether your goal is to build, buy, or sell a home, I would be honored to serve and help you with your real estate needs!