What Is a Smart Home?

A smart home is equipped with internet-connected devices that allow the home's security features, appliances, climate controls, and more to be operated remotely via a mobile device. They can be set up using either hardwired or wireless systems.

Outdoor security cameras, video doorbells, smart locks, smart entertainment speakers, connected thermostats, pet cameras, and smart thermostats are among the many internet-connected home products now readily available to consumers.

How Smart Homes Work

A smart home’s devices are connected with each other and can be accessed through one central point—a mobile phone, tablet, laptop, or game console. Door locks, televisions, thermostats, home monitors, cameras, lights, and appliances such as refrigerators can be controlled through one home automation system.

The remote control system allows users to schedule tasks, trigger devices, or monitor results from anywhere.

Smart home appliances have self-learning skills. They can learn the homeowner’s schedules and make adjustments as needed. Users benefit from energy savings by using features that control home lighting and temperature remotely.

Some home automation systems alert the homeowner if any motion is detected in the home when they're away. Others can call the police or fire department if dangerous situations are detected.

Once connected, services such as a smart doorbell, smart security system, and smart appliances become part of the internet of things (IoT) technology, a network of physical objects capable of gathering and sharing electronic information.

Smart Home Systems

Wireless

Smart homes can feature either wireless or hardwired systems or both. Wireless systems are easier to install. Putting in a wireless home automation system with features such as smart lighting, climate control, and security can be limited to several thousand dollars, making it relatively affordable.

The downside to wireless systems is that the homeowner needs strong Wi-Fi coverage and broadband service throughout the entire house. This may require an investment in range extenders or hardwired wireless access points.

Wireless smart home systems are generally a better choice for smaller homes and rental properties.

Hardwired

Hardwired systems are considered more reliable. They are typically more difficult to hack.

A hardwired system can increase the resale value of a home. It also can be scaled easily. Therefore, it is often the default method when designing a new build or performing a major renovation.

There is a drawback—it's fairly expensive. Installing a luxury and hardwired smart system can cost homeowners tens of thousands of dollars. Space for network hardware equipment including Ethernet cables also is needed.

Components of a Smart Home

Heating

Smart home products now allow for greater control over heating devices, including turning products on and off and controlling settings. Smart products may be armed with temperature or humidity sensors to automatically turn on or off if certain criteria are met. This line of smart home innovations also extends to air conditioners.

Lighting

Lights can be switched on and off remotely, placed on a schedule, or set to change based on sunrise or sunset times.

Like some more conventional products, lights can often be set to change based on motion. Smart bulbs can communicate over Wi-Fi and display usage statistics on your phone.

This lighting category includes smart home products that control the degree of light. Automatic blinds may be installed and set to close based on sunrise schedules. Electronic curtains allow users to manage window blinds using a handheld device.

Audio/Visual

One of the more appealing aspects of smart homes is the many entertainment products that can be connected to each other and controlled with a single remote. Television and speakers can be played on command using applications. They can be operated according to a schedule or by voice control.

Security

One of the most important aspects of a smart home is the enhanced security capabilities it offers. Products with cameras track motion, capture videos, or allow for live video feeds. These may be installed to sync with a ringing doorbell or set to capture certain areas of your property.

Products can be enabled with audio or video calls with people standing at your door.

Many smart homes are also refit with advanced security kits. These kits include motion sensor detectors, home monitoring, notifications and alerts concerning suspicious behavior, and the ability to lock doors or windows remotely.

Other

Smart home products also include digital assistants or home hubs. People interact with these products using their voice and by issuing commands. They can field questions, organize your calendar, schedule conference calls, or provide alerts.

Smart smoke and carbon monoxide detectors not only sound an alarm but can be synced to your phone to alert you should you be away from your property. These devices can often be set up to send emergency notifications to emergency responders.

People have been able to program automated irrigation systems for a while. Now, smart irrigation systems can detect climate and environmental conditions and factor them into watering schedules. Smart irrigation systems also monitor moisture-related conditions and control irrigation to conserve water.

Advantages and Disadvantages of Smart Homes

Advantages

• Smart home technology systems offer homeowners convenience. Rather than controlling appliances, thermostats, lighting, and other features using individual devices, homeowners can control them all using one device—usually a smartphone or tablet—and can do it from anywhere.
• Homeowners can get notifications and updates on issues in their homes when they're away. For instance, smart doorbells allow homeowners to see and communicate with people who come to their doors when they're not at home.
• Homeowners can benefit from significant cost savings over time. Appliances and electronics can be used more efficiently, lowering energy costs.1

Disadvantages

• Hackers can gain access to a smart home's security devices. Weak passwords, outdated software, and exposure to public internet connections make the systems vulnerable. 2
• Risk mitigation involves the extra effort of periodically changing strong passwords, using encryption, and only connecting trusted devices to one's network.
• The costs of installing smart technology can run anywhere from a few thousand dollars for a wireless system to tens of thousands of dollars for a hardwired system.
• Learning to use the home system may involve a steep learning curve.

Home Much Does a Smart Home Cost?

The average cost of a smart home installation is about $897, according to HomeAdvisor. Fully automating a four-bedroom, three-bathroom home could cost upwards of $15,000.6

But not everybody needs or wants all of the bells and whistles. Individual smart home devices are already affordable, and getting more affordable.

You can start by focusing on a specific product or room. This strategy allows individuals to invest in smart technology at a modest cost. Consider the following options priced at less than $100 as of April 2025:

• Google Nest Mini, the home audio and assistant device7
• Amazon Smart Plug, a device for automating appliances8
• Ring Smart Doorbell, a video-enabled camera for home security9
• Wyze Thermostat, a digital, wireless, programmable heating device10

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