The state of smart home technology: What do buyers and owners want?

Aly J. Yale
The Mortgage Reports contributor

Convenience, security top the list

Want to get more for your house? Install smart home technology. According to a new study, 65 percent of homebuyers are willing to pay more for properties equipped with smart technology.

Verify your new rate (Jun 23rd, 2021)

Paying a premium

According to “Home is Where the Smart is,” a study from home security provider ADT, nearly two-thirds of homebuyers would pay a premium for smart home technology.

The types of technologies they want? Ones that add convenience are tops, followed by comfort-adding devices, mobile-enabled trackers and home security technology. Energy efficiency is also top of mind.

When it comes to security devices, buyers are most commonly seeking smart cameras, alarms, doorbells, locks and motion sensors.

“Our data suggest smart home security products enjoyed a surge in popularity after 2016, with a particular uptick in smart camera ownership following that year,” ADT reported. Smart security devices are particularly popular with parents, Millennials and Generation Z homeowners, according to the ADT study.

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What homeowners are investing in

What are existing homeowners pouring cash into? More than 60 percent already own a smart hub device — something like an Amazon Alexa, Samsung Smartthings or Google Assistant.

Six in 10 also have anywhere from two to five smart home devices. These include things like smart speakers, smart TVs, smart thermostats and smart light bulbs.

“In terms of ownership, smart TVs were, by far, the most common form of smart technology,” ADT reported. “Nearly 73 percent of respondents said they owned one currently. This finding may simply reflect the standardization of smart features across the category. Whereas internet connectivity was once limited to the most expensive TV models, that’s far from the case today.”

Smart homes: What you need to know about IoT devices

Smart appliances like web-enabled refrigerators and smart cooking devices are the least popular technologies, with fewer than 10 percent saying they own one. Just 23 percent of people don’t own a single smart home device at all.

Verify your new rate (Jun 23rd, 2021)

Get today’s mortgage rates

Looking to buy a home? Smart tech-enabled or not, you’ll want to shop around for your mortgage rate first. See what rates you qualify for today.

Verify your new rate (Jun 23rd, 2021)