Are Smart Homes Expensive?
Smart homes are not automatically expensive. A basic setup covering a few rooms with lighting and sensor based automation typically starts in the low hundreds of dollars and most systems grow gradually rather than being bought all at once. Cost depends far more on how many devices you add and whether any hardwired electrical work is involved than on the fact that a home is "smart".
Where this myth comes from
Early smart home products and premium whole-house integration packages were genuinely expensive and some high end custom installation companies still charge accordingly. This gives smart homes a reputation for being a luxury purchase. In reality, the Zigbee, Thread, Matter and Wi-Fi devices available today, combined with an open platform like Home Assistant, let you start small and add devices over time at a range of price points.
What actually drives the cost
The total cost of a smart home setup is mostly driven by three things: how many devices you add, whether any of them need to be wired into your switchboard and how much automation configuration you want done for you. A handful of plug in sensors and smart bulbs costs very little compared with a full house retrofit involving hardwired switches, multiple hubs and extensive custom automations.
Typical starting costs
| Setup size | What it typically includes | Rough starting cost |
|---|---|---|
| Starter | A few smart bulbs, one or two sensors, a basic hub | Low hundreds of dollars |
| Single room | Lighting, a sensor or two and basic automation for one room | Low to mid hundreds of dollars |
| Whole apartment or small house | Lighting, sensors, plugs and automation across several rooms | Mid hundreds to low thousands of dollars |
| Full house with hardwired work | Hardwired switches, multiple hubs, extensive automation | Varies significantly, quoted after assessment |
These figures are general guidance rather than a fixed quote, since every home and device list is different.
Where you can save money
Choosing devices that use open standards such as Zigbee, Thread and Matter generally keeps costs lower than locking into a single premium brand's closed ecosystem, since you can mix and match more affordable products from different manufacturers. Starting with plug in and battery powered devices also avoids electrician costs entirely for most people, since this hardware does not need to be wired in.
Where costs genuinely go up
Hardwired work such as replacing a light switch or adding a dedicated circuit for a hub requires a licensed electrician under Australian and NSW regulations, which adds labour cost on top of the device itself. Very large homes with many rooms, or systems with extensive custom automation requirements, also cost more simply because there is more hardware and configuration involved, not because the technology is inherently expensive.
Installation and safety
Plug in and battery powered devices such as smart bulbs, sensors and plugs do not require an electrician and can usually be installed without any wiring changes. Anything that needs to be wired into your switchboard must be installed by a licensed electrician under Australian and NSW regulations. Hausie identifies which parts of a job need an electrician during the initial assessment, so this is never a surprise later.
Hausie's recommendation
Hausie recommends starting with a small, affordable setup covering the areas that matter most to you, such as lighting or security sensors, then expanding gradually rather than trying to automate an entire home in one go. This keeps upfront costs manageable while still building toward a fuller system over time if you want one.
FAQ
What is the cheapest way to start a smart home? A hub, a few smart bulbs and one or two battery powered sensors is usually the most affordable starting point, with no electrician required.
Do smart homes require an ongoing subscription? No. Home Assistant does not require a subscription to run locally, which keeps long term costs lower than some subscription based smart home platforms.
Why do some smart home quotes seem much higher than others? Quotes vary mainly based on how many devices are involved and whether hardwired electrical work is needed, not because one installer is using more "advanced" technology than another.
Can I add more devices later instead of buying everything at once? Yes. Most systems, especially those built on Home Assistant, are designed to grow over time as you add more sensors and devices.
Is a smart home a good investment for a rental property? It can be, particularly plug in and battery powered devices that do not require permanent changes and can move with you or be removed for a new tenant.
Next step
If you want to see what a realistic starting budget looks like for your home, get in touch to book an assessment or view Hausie smart home packages at a range of price points. You can also browse the Hausie product catalogue or see how Hausie works before deciding where to start.