Smart Homes 2025: Trends, Pricing, and Buyer Insights

Key takeaways

• The average smart home price in 2025 is $1,224,763—almost double the cost of a non-smart home ($663,847).
• Los Angeles, New York, and Dallas had the highest number of smart home listings.
• Over 1 in 4 Americans would pay extra for a smart home—$18,056 more on average.
• 1 in 4 believe smart homes will be the standard within 5 years, and 62% think smart features increase a home's resale value.
• Privacy (60%) and cybersecurity threats (56%) are the top concerns people have about smart homes.

Smart homes are changing the real estate game, making life easier with automation, top-notch security, and energy efficiency. And as this tech becomes more common, buyers are willing to shell out extra cash for the convenience. But how much are smart homes actually worth? And where can you find the best supply? We analyzed real estate listings and spoke with 1,000 Americans to get the latest insights on smart home prices, demand, and the concerns that come with them.

Where smart homes are most available

Smart home technology is expanding across the U.S., but availability and pricing trends vary widely by location. Some cities have a higher concentration of smart home listings, making them key markets for buyers interested in high-tech living.

To determine availability, we examined the 350 most recent home listings in the 100 most populous U.S. cities, identifying "smart homes" based on listing keywords. We then compared their prices to non-smart homes in the same areas.

Among the cities analyzed, Los Angeles, New York, Dallas, Miami, and Houston had the highest number of smart home listings. However, the price differences between smart and non-smart homes varied significantly across metro areas.

Philadelphia had the largest price gap, with smart homes costing 327% more than non-smart homes. Chicago followed, where smart homes were 176% more expensive than traditional homes. On the other hand, Arlington, TX, and Raleigh, NC, saw the biggest negative difference—smart homes were actually 39% cheaper than non-smart homes.

How much do smart homes cost in 2025?

Smart home prices are anything but uniform across the U.S. While some markets feature multimillion-dollar listings, others remain surprisingly affordable. As smart technology becomes a bigger selling point, prices have surged in certain cities, making location a key factor in affordability.

The average price of a smart home in 2025 was $1,224,763—nearly double the cost of a non-smart home, which averages $663,847. The cities with the highest average smart home prices were:

• Los Angeles: $2.99 million
• Scottsdale: $2.47 million
• New York: $2.33 million
• Miami: $1.78 million
• San Diego: $1.77 million

Los Angeles has seen one of the most dramatic price jumps, with smart home prices skyrocketing from $1.9 million to $2.99 million in just 18 months.

Meanwhile, some cities remain far more accessible for buyers looking for smart home features at a lower cost. The most affordable smart home markets were:

• Fort Wayne, IN: $319,869
• El Paso, TX: $367,868
• Indianapolis, IN: $383,365
• Raleigh, NC: $387,730
• Greensboro, NC: $406,487

With such stark differences in pricing, the cost of smart living depends largely on where you’re looking to buy.

How much are buyers willing to pay for a smart home?

For this part of the study, we defined a smart home as a home equipped with automated features such as security systems, smart lighting, voice-controlled assistants, and energy-efficient technology. As these innovations become more mainstream, buyers are increasingly willing to pay a premium for the convenience and efficiency they offer.

Over a quarter of Americans (28%) were willing to pay extra for a smart home, with an average additional spend of $18,056. This marked a notable increase from a previous study, where only 10% of Americans had been willing to go over budget by an average of $15,323.

Additionally, 1 in 4 believed that smart homes would become the norm within the next five years, while 62% said smart features had the potential to increase a home's resale value. Nearly 1 in 10 Americans had plans to move into a smart home within the next year, and 59% already lived in one. Millennials were the most likely to live in a smart home (63%).

Despite the growing appeal of smart homes, privacy remained the top concern for 60%, followed by hacking or cyber threats (56%). These concerns show how buyers must balance convenience with security when choosing smart home technology.

To protect your privacy and security in a smart home, use strong passwords, enable two-factor authentication, and keep devices updated to prevent hacking. Limit data sharing, secure your Wi-Fi with encryption, and consider setting up a guest network for smart devices. Being mindful of privacy settings and only using trusted brands can also help reduce risks.

The future of smart homes

Smart homes are becoming increasingly common—and increasingly valuable—as buyers show a growing willingness to pay for convenience and automation. While prices vary widely across cities, demand for smart features continues to rise, with many expecting them to become standard. However, privacy and cybersecurity concerns remain significant. Moving forward, the long-term success of smart homes will depend on striking the right balance between innovation and the need for security and peace of mind.

Methodology

We collected Redfin data on the 350 most recent home listings in the 100 most populous U.S. cities, identifying properties as "smart homes" based on listing keywords. We then gathered smart home pricing data and compared it to non-smart home prices in the same markets. Some smart homes may not have been captured in the data if their listings did not explicitly include keywords such as "smart home." Home listing data was obtained in February 2025 and may be subject to change. Only cities with at least 10 smart home listings were included in the analysis. To ensure greater accuracy, we applied the interquartile (IQR) method to remove outliers.

We also conducted a survey of 1,000 Americans on February 5, 2025, to assess consumer perceptions of smart homes. Respondents were 15% Gen Z, 54% millennials, 22% Gen X, and 8% were baby boomers. As with all self-reported data, there is a possibility of response bias, where participants may have overestimated, underestimated, or misremembered their smart home usage and purchasing behavior.

Fair use statement

Feel free to share these study insights for noncommercial purposes. Please provide a link back to this page so readers can access our full findings and methodology.