Does Smart Home Automation Increase Home Value? What Every Seller Should Know

Redfin News

by Pablo Alvarez

February 19, 2026

AI-Generated Deep Dive Summary

Smart home automation is no longer just a futuristic concept—it’s a valuable upgrade for homeowners looking to boost their property’s appeal and resale value. As technology continues to evolve, modern buyers are increasingly drawn to the convenience, efficiency, and security that smart home features provide. This trend has significant implications for real estate, with sellers wondering: does investing in smart home automation pay off? The answer is a resounding yes, as these upgrades can enhance both buyer interest and the overall value of a property. The appeal of smart home technology extends across various demographics, but it’s particularly popular among tech-savvy Millennials and Gen Xers. According to recent studies, 47% of Millennials have installed at least one smart device in their homes, followed by 33% of Gen Xers and 24% of older adults. This preference for modern technology translates into higher willingness to pay: nearly a third of Americans are willing to spend up to $18,056 more on a home equipped with smart features. Additionally, 62% believe that these upgrades can significantly increase a home’s resale value, making them a worthwhile investment. Key smart home upgrades that add the most value include smart thermostats and lighting systems, which offer energy savings and remote control capabilities. These features not only reduce utility bills but also appeal to environmentally conscious buyers. Similarly, enhanced security systems like video doorbells and connected cameras provide peace of mind, making them highly desirable. Modern buyers are drawn to these innovations because they simplify daily routines, enhance safety, and reflect a forward-thinking lifestyle. For real estate professionals and sellers, understanding the demand for smart home technology is crucial in today’s competitive market. Homes with these features often stand out, attracting tech-savvy buyers who prioritize convenience and efficiency. As smart home adoption continues to grow, especially among Millennials and Gen Xers, homeowners can justify investing in automation upgrades knowing they align with buyer preferences and potentially increase long-term value. Whether it’s a Nest thermostat or voice-controlled lighting, these innovations are no longer niche—they’re becoming essential for modern living.

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Originally published on Redfin News on 2/19/2026