Is Installing Smart Home Technology A Good Investment?

Trying to increase the value of a home while selling, or searching for value while buying a home, is an age-old conundrum—the features buyers are looking for weighed against the cost for sellers to implement.


Smart home technology, which is relatively new to residential real estate, has already shown some interesting effects on the U.S. housing market. A 2015 survey from CNET and Coldwell Banker revealed some interesting statistics:

  • 28% of homeowners already have a connected device in their home
  • 91% of smart home owners recommend this technology to others
  • 81% would be more likely to buy a home if smart technology was already installed

While there are plenty of niche home technology partners that have been at it for a while, pretty much every major player in the global technology industry is now getting involved in smart homes. From Apple’s HomeKit app to Amazon’s Alexa, home automation technology is going mainstream.

That said, let’s dig into the specifics of smart home adoption in the market!

Who’s installing home automation features?

Everybody, according to another survey from ERA Real Estate and HGTV.

Home automation is anything but a young person’s game, with almost 50% of people surveyed responding that it’s important for their current home (or next home) to have smart features integrated into the house.

Millennials are, however, 10x more likely to consider updating their homes with smart technology.

What’s the most popular smart home feature?

It depends on how old you are.

Baby boomers are most likely to have a security system installed in their homes, and 50% of Americans already have a security system installed.

Almost half of Millennials surveyed want green technology features in their homes, compared to only a third of Boomers and Gen X’ers. Additionally, 70% of Millennials want their home to integrate with their smartphones.

Among all of the possibilities with IoT, however, there are few similarities between generations.

Overwhelmingly, all age groups want smart home tech that helps them save money, like temperature control, energy management, remote home monitoring and light control.

New home builders are building smart homes

New home builders are starting to include smart home features standard. Take Candlelight Homes, a Utah-based builder. This is for all their products; not just the luxury homes.

If you’re considering selling your home and trying to add value, smart home technology is no longer a differentiator between a new home, it’s the standard.

Is installing smart home technology a good investment? The data points to yes. Is it right for you? You be the judge! We hope this article guides you down the right path.

As always, if you have any questions or comments about this article, please don’t hesitate to contact us.

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