The cost of turning your house into a “smart home” could range from about $100 to $4,500 or more, depending on what type of upgrades you might be considering.
According to 2025 data from the home improvement site Angi.com, the typical cost of a smart home ranges from $204 to $1,653. But several factors could affect how much you end up paying, including the size of your home and whether you DIY the install or hire a professional to take charge.
As you’re thinking about how to upgrade your home to a smart home, read on for a look at what it might cost, whether the return on investment could be worth the price, and how you might choose to pay for those cool new devices.
Key Points
• The cost of upgrading to a smart home in 2025 ranges from $100 to more than $4,000, depending on what is included in the project.
• Smart security systems, a popular choice, can cost from $300 to $5,000.
• Smart thermostats cost from $70 to $280, and a fully automated HVAC system can range from $800 to $2,000.
• Additional expenses include monthly subscription fees from $10 to $60 and potential Wi-Fi upgrades.
• Premium smart home setups offer advanced features and support. Homeowners can finance systems with a home equity line of credit (HELOC), among other options.
Understanding Smart Home Technology in 2025
Way back in 1962, the animated TV show The Jetsons and other sci-fi classics gave viewers an aspirational look at what life might be like 100 years in the future — when a home filled with computerized gadgets would make life so much easier for moms, dads, the kids, and even the family dog.
Who knew, even as you watched those old shows as reruns decades later, that so much of what they predicted would come true? OK, maybe we don’t have flying cars yet. But in 2025, smart home technology, or home automation, is a reality … and getting smarter all the time.
You can see who’s at your door from 1,000 miles away. Or program your robot vacuum to clean your floors when and where you want. You can use your smartphone, tablet, laptop, or a smart home assistant like Google or Alexa to turn lights on and off, turn the thermostat up or down, open and close the blinds, and more. Many of today’s devices can be operated separately or linked together to act as a cohesive network. And besides the obvious convenience, smart tech can also help reduce some costs and your carbon footprint.
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Smart Home Cost Breakdown by Category
The cost of turning your house into a smart home will depend on which devices you choose to install or upgrade, and how connected you want those various devices to be. If you install one or two gadgets yourself — like a new smart thermostat or a doorbell camera — you can probably keep the cost to a minimum. But if you have a professional come in and connect your whole home, the price could be much higher.
Here’s a breakdown of what a few of the more popular smart devices could run you:
Smart Home Cost: Security Systems
Because they can allow you to better monitor your property when you’re away, home safety systems are among the most popular automated setups offered. And there’s a wide range of options available. You can choose between a wired or wireless (Bluetooth or Wi-Fi) system, for example, or between a professionally installed and monitored system and one that you set up and monitor yourself using your phone. Depending on your choice, and how elaborate the setup of sensors and cameras is, you could spend anywhere from $300 to $5,000 or more on installation, with an additional charge for external monitoring for some systems.
Smart Home Cost: Automated Lighting and Electrical
We’ve come a long way since clapping to turn a lamp on and off was considered high-tech. Today’s smart lighting can be controlled remotely or set up to go on and off automatically, so you can keep your home safer and use your electricity more efficiently. You also may be able to adjust the brightness and color of your lights. Fully outfitting your home with smart lighting could cost from $1,000 to $5,000. Or you can start out a little smaller and buy smart bulbs (about $15 each or less) that wirelessly connect to your home’s hub (think Alexa or Google Nest) or your smartphone.
Smart Home Cost: HVAC and Climate Control
A smart thermostat offers another way to control your home environment from afar and potentially lower your power bills. You can program it to turn on or turn up the air conditioner or heater before you get home so the temp is just the way you like it. Or you can make adjustments any time remotely using your smartphone. Some smart thermostats also can “learn” your temperature preferences and automatically create a heating and cooling schedule based on your habits. The price of a smart thermostat can range from about $70 to $280. A fully automated HVAC system, on the other hand, could cost from $800 to $2,000 or more.
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Entry-Level vs. Premium Smart Home Setups
There are smart home options to fit just about any budget. But when you compare entry-level vs. premium smart home setups, you’ll likely find differences in performance, design, functionality, and support.
Professional installation, customization, and the brand you buy can all factor into the price you’ll ultimately pay to transition to a smart home. (Of course, you could also buy a new home that’s already outfitted with a state-of-the-art smart system.)
If your budget is a factor, you may want to start small, with a few essentials that you can install yourself. You might have to invest quite a bit more (thousands of dollars vs. hundreds) to get a top-tier whole-house system that seamlessly integrates all the electronics inside and outside your home.
Hidden Costs of Smart Home Implementation
When you’re budgeting for any smart home upgrade, it can be a good idea to prepare for extra costs, including:
Subscription Costs
Some smart devices come with monthly fees that can add to your overall cost. If you want 24/7 security system monitoring, for example, you could pay $30 to $60 or more each month for that service. (Some self-monitored video doorbells also require a subscription — especially if you want to customize your setup.) Your smart home system may also charge a monthly subscription ($10 to $50 or more, depending on the level of service) to cover ongoing maintenance, software and equipment updates, and general support.
Stronger Wi-Fi Requirements
If your smart home system requires a stronger signal than you currently have, you may have to get an upgrade and pay more each month to your wireless company.
Repairs and Replacements
If your smart appliance (refrigerator, dishwasher, microwave, etc.) breaks down, the cost of repairing or replacing it will likely be higher than what you’d pay for basic appliances. And you may not be able to take certain larger appliances or your security system with you if you move.
Packages vs. Individual Pieces
Depending on how big you think you might want to go with your smart home tech, you may want to compare the cost of buying a comprehensive system of integrated smart components vs. buying one device at a time. You might be able to save some money by purchasing a package that includes professional installation, service, and other features. (If you’re considering a renovation or remodel, it may make sense to include the costs of a smart home upgrade in your budget.)
Financing Your Smart Home Upgrade
While some smart home devices can be relatively low in cost, others may require a more significant investment. So besides researching the various costs, it can also make sense to consider how you might pay for any smart tech improvements.
If you have some equity built up in your home, you may want to look into the pros and cons of using a home equity loan vs. a home equity line of credit (HELOC) to help finance your project. Both allow those who qualify to borrow a large sum of money at a relatively low interest rate and with lower fees than a mortgage refinance. But each works a bit differently.
• A home equity loan is disbursed in a lump sum that you’ll begin repaying immediately, with interest, usually at a fixed rate. This might be a good solution if outfitting your home with smart technology is part of a larger renovation project that you undertake with a contractor who can give you a bid for the total costs to remodel or renovate a home in advance, so you know, roughly, what your total spend will be.
• A HELOC is a revolving line of credit that works more like a credit card. You can take out money as you need it, up to your approved limit, during the draw period, which typically lasts 10 years. Usually, you’ll be required to make interest-only payments on the amount you borrow during that time. When the draw period ends, you’ll enter the repayment period, which is usually 20 years; and at that time, you must begin repaying the principal balance with interest, usually at a variable rate. A HELOC could be a good solution if you aren’t sure exactly how large a project you’re taking on and what it might cost — if it’s a few rolling renovations vs. a big remodel, for example.
It might be tempting to go to the lender that provided your home mortgage loan for financing, but it’s always a good idea to look around and check rates with several lenders before making a commitment.
If you don’t have enough equity in your home, or if you prefer not to use your home as collateral, another possibility might be an unsecured home improvement loan. With this type of personal loan, the funding may be faster (there’s no appraisal required), and your home isn’t on the line if you fall behind on your payments. As for a fixed interest rate for easier budgeting.
Any of these borrowing options can be used to cover the costs of upgrading to a smart home, so it’s really about finding the right fit for your needs.
ROI of Smart Home Investments
Is a smart home worth the cost? Even if your focus is primarily on comfort and convenience when you invest in smart home technology, you’ll likely notice other benefits as well.
You can use devices that control your home’s temperature, appliances, and lights, for example, to help you reduce your monthly energy bills. And installing a security system may help you reduce your insurance costs.
Adding smart home components or a whole system can also help you increase or maintain the value of your home. Is a smart home worth it? According to Forbes.com, most sellers of smart homes realize a 50% return on their investment. And because buyers are increasingly looking for smart home features, the right upgrades also may help you sell your home faster.
The Takeaway
Technology that can make your home life simpler, safer, and more comfortable is no longer a fantasy. Upgrading your home to a smart home isn’t even really considered a luxury anymore.
How much is a smart home? These days, there are devices and packages designed to fit just about any budget, from individual components that may cost less than $100, to whole-home systems that can run into the thousands. If you’re spending big on smart tech or wrapping smart home technology into a larger renovation, a home equity line of credit could help you cover the bills.
SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.
FAQ
What’s the average cost of a basic smart home setup in 2025?
The typical cost of a smart home can range from about $200 to $2,000 or more. But several factors can affect how much you end up paying, including the size of the upgrade and whether you DIY the job or hire a professional to take charge.
Which smart home features offer the best return on investment?
Smart thermostats, lighting, and security systems are currently in high demand and generally offer the best return on investment.
Can I finance smart home upgrades through SoFi?
Absolutely. SoFi offers several financing options for homeowners who want to upgrade their tech, including a home equity loan, a home equity line of credit (HELOC), and an unsecured home improvement loan.
How much should I budget for ongoing smart home maintenance and subscriptions?
Depending on the type of system you plan to purchase, it may make sense to budget at least $50 a month for maintenance and subscriptions.
Are there tax incentives or rebates available for energy-efficient smart home implementations?
Tax laws that apply to energy-efficient upgrades are complicated and can change from year to year. Keep your receipts (documenting your costs is key), and talk to your tax preparer about potential tax breaks, but don’t count on them when you’re planning your project.
Photo credit: iStock/Srdjanns74
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