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Finance

The Best Smart-Home Upgrades To Make for Under $500

Last updated: August 5, 2025 7:47 pm
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Contents
Lighting SystemsSmart LocksSmart SpeakersWireless Alarm SystemSmart ThermostatsSmart Leak SensorsSmart Garage Controllers

Making smart-home upgrades may seem too luxurious to be attainable at first glance, but there are many ways to make your home more convenient and comfortable, and possibly save money, without putting in a lot of money or effort upfront.

To figure out which upgrades to make, think about the most common things in your home you use and see if there are ways to improve on what you already love or fix your biggest frustrations, according to Jason Fischbeck, president at Automated Environments, an automation integrator in Arizona.

Also, consider starting small before doing a full home upgrade. Go room by room and test out what works well in one space first, said Danny Niemela, vice president and chief financial officer at ArDan Construction, a home remodeling general contractor in Arizona. “No need to commit to a whole ecosystem right away. The best smart homes grow in layers,” he said.

Read More: 6 Easy and Affordable Home Renovation Tips From Joanna Gaines

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With that in mind, consider the following types of smart home upgrades that often cost less than $500 each.

Also see the best money you can spend to cut your utility bills in half.

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Lighting Systems

While a whole-home lighting system could get pricey, there are a lot of ways to make these upgrades affordably. Even a small change like a $10 to $20 smart lightbulb that lets you change the color or dim it with an app can be a quick, convenient upgrade. Or you can go a little more advanced while still keeping things affordable.

“Smart lighting, when done selectively, works great for main living spaces or outdoor zones. I am not sold on full-house systems unless you are starting from studs. But adding voice-activated dimmers, motion triggers for hallways, or a dusk-to-dawn exterior setup makes real impact for under $500 per room. Set it and forget it, and suddenly the house adapts to you instead of the other way around,” Niemela said.

Check Out: 7 Savvy Ways To Budget for Home Remodeling Projects in 2025

Smart Locks

There are ways to make life more convenient with smart-home upgrades. Changing out your manual door locks for smart locks is just one example.

“The best part about smart locks is that you can program them to lock and unlock the door at specific times. You can let people into your house when you are not home. They are an affordable additional layer of security for your home,” Fischbeck said.

Smart Speakers

On the entertainment side of things, adding smart speakers can be a fun way to easily enjoy music throughout your home. Some smart speakers double as voice assistants, like Amazon Echo, but you can also add integrated speaker systems that are more specifically designed for high-quality audio.

For example, Fischbeck recommended Sonos. Some Sonos speakers are over $500, and it could get a bit pricey if you add several, but you don’t have to go straight for a whole-home system, and the quality is often worth it.

“It sounds great and works great, and it does not break the bank. You can also upscale it eventually when you want to. Maybe you start with a soundbar in one room and then eventually add more integrated sound systems to other rooms in your home when you have the budget for it,” he said.

Wireless Alarm System

Another good smart-home upgrade is adding a wireless alarm system that you can control from your phone and can often be installed yourself.

For example, a “Ring alarm system is something everyone can use because it has a user-friendly interface, and it is scalable and affordable,” according to Fischbeck. “It won’t be as nice as a hardwire solution, but it is excellent to get into smart tech on a budget.”

Smart Thermostats

Some smart-home devices like smart thermostats can add both convenience and savings. Being able to set schedules and remotely control your heating and cooling can lower your energy bills.

While the thermostats are generally much less than $500, you might go a bit over that if having it professionally installed. Still, that’s an area Fischbeck thinks is worth it.

“Smart thermostats are great, but you want to make sure you have an HVAC tech to install those. You don’t want to wire it to your AC incorrectly,” he said. “It is still an affordable way to get into smart tech.”

Smart Leak Sensors

Another potential money-saving smart home upgrade is adding smart leak sensors.

These “deserve more attention, especially under sinks and around water heaters,” according to Niemela. “For under $50, they can save thousands in damage. They take about five minutes to place. If someone lives in an older home, this should be the first thing they buy.”

For a bit more of an investment of around $400 to $600, Niemela also suggested smart water shut-off valves, which can automatically shut off water if a pipe bursts. And the cost could be somewhat offset by lower insurance premiums. Plus, “peace of mind is priceless,” he added.

Smart Garage Controllers

Lastly, if you have a garage, consider a smart controller.

“For about $100, they let you open and close your garage remotely, get alerts if it is left open, and even let in deliveries while you are away — great for people who forget to close the door or hate turning around halfway to work, easy win,” Niemela said.

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This article originally appeared on GOBankingRates.com: The Best Smart-Home Upgrades To Make for Under $500

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