In the hyper-competitive NYC real estate market, the rooftop pool and state-of-the-art gym have become standard. The new frontier for differentiation is in-unit technology. Smart home features are no longer a luxury add-on reserved for penthouses. They have become a core component of modern living that today’s buyers actively seek out.

For developers focused on maximizing asset value and accelerating sales cycles, the question is no longer “should we include smart technology?” It’s “how do we implement it strategically?” This post breaks down the financial returns of investing in smart home infrastructure for new residential developments in New York City.

What NYC Buyers Expect From Luxury Living in 2026

The definition of luxury has evolved. Marble countertops and hardwood floors remain important, but affluent buyers now prioritize convenience, security, and a seamless living experience. The post-pandemic hybrid work model has made a robust home environment critical for professionals who split time between the office and their apartment.

“Today’s luxury buyer in SoHo or the Upper East Side doesn’t want a beautiful apartment. They want an intelligent one. They expect the technology to work as flawlessly as the Sub-Zero refrigerator.”

According to industry data, 78% of homebuyers will pay more for a property with smart devices. Among millennial renters, that number climbs to 86%, with an average willingness to pay a 20% rent premium for apartments equipped with smart technology.

The Numbers Behind Smart Home ROI for Real Estate

Smart home ROI for real estate is quantifiable. Studies from the Consumer Technology Association and National Association of Realtors show that smart home features can increase a property’s value by 3% to 5%. On a $2 million Manhattan apartment, that translates to $60,000 to $100,000 in additional value.

Investment Area	Impact on ROI	Key Data Points
Increased Property Value	Direct impact on sale price	Smart home features that increase property value by 3-5%. On a $2M unit, that’s $60K-$100K.
Faster Sales Cycle	Reduced carrying costs	Tech-enabled properties have up to 40% greater chance of selling at a higher price point.
Higher Perceived Value	Justifies premium pricing	Automated shades, integrated lighting, and unified security create a powerful first impression.
Future-Proofing the Asset	Long-term value retention	A building pre-wired for technology adapts to future upgrades, protecting its asset value for decades.

For multifamily properties, the returns are even more compelling. Smart home technology creates a 3-5% rise in building valuation with an average ROI of 30%.

Three Smart Home Investments That Deliver the Highest Returns

Not every smart feature delivers equal value. Based on market data, three categories consistently provide the highest return for developers building in Manhattan, Brooklyn, and Queens.

Intelligent Lighting and Motorized Shades

Circadian rhythm lighting creates an atmosphere of wellness and luxury that resonates with health-conscious buyers. Motorized shades offer effortless privacy in a city where neighboring buildings sit feet away. Smart lighting systems can also reduce electricity use by up to 50%, a selling point that appeals to environmentally minded residents and translates to real monthly savings.

Keyless Entry and Unified Security Systems

Video intercoms that route directly to a smartphone, keyless entry, and unified security systems rank among the most requested features in NYC buildings. Smart security systems can add up to 5% to a property’s value. For residents in a city where personal safety and package security are daily concerns, these features are expected rather than optional.

Building-Wide Network Infrastructure

High-speed Wi-Fi and wired connectivity have become the “fourth utility” after water, gas, and electricity. Offering guaranteed, building-wide network infrastructure is a massive differentiator for professionals who work from home. A robust network backbone supports every other smart feature in the building and belongs on any developer’s requirements checklist for new construction.

Why Pre-Wiring During Construction is the Only Cost-Effective Option

The only cost-effective way to implement these features is through pre-wiring during the construction phase. Running cable through open walls costs a fraction of what it takes to retrofit a finished luxury apartment. Attempting to add comprehensive smart systems after completion means tearing into walls, ceilings, and floors.

When developers pre-wire for home automation, they create a foundation that supports integrated platforms like Savant, Control4, or Crestron without limitation. The upfront investment is minimal compared to the long-term asset value it protects.

Smart Home Market Growth Through 2027

The global smart home market reached $127.67 billion in 2024 and is projected to hit $1.4 trillion by 2034. In the United States, over two-thirds of homes will have smart devices by 2027.

Year	US Smart Homes in Millions	Percentage of US Homes
2025	77.05	~52%
2026	84.92	~57%
2027	93.59	~68%

Buildings without integrated technology will struggle to compete for buyers and tenants in the very near future.

Why Tech-Forward Markets Like NYC Command Higher Premiums

Location affects ROI significantly. In tech-forward markets like New York, San Francisco, and Austin, the premium for AI-integrated smart features can reach 7% to 10%. More traditional markets typically yield 2% to 5%. For developers building in NYC, the numbers strongly favor smart home investment. Buyers here expect cutting-edge technology and will pay accordingly.

Why Professional Installation Commands a Premium

DIY solutions work for a single smart thermostat. Comprehensive building-wide systems require professional installation, and buyers recognize the difference. A professionally installed and integrated system commands a higher premium because prospective owners trust it will function on move-in day. They do not want to inherit someone’s weekend project or troubleshoot a patchwork of disconnected devices. Systems that integrate through platforms like Control4 or Savant signal quality and reliability to discerning buyers.

Smart Technology as a Competitive Advantage

In a crowded market, smart home technology is a powerful tool for differentiation, value creation, and faster ROI. The most successful smart buildings result from collaboration between developer, architect, and technology integrator from day one.

Integrating professional home automation systems starts with a strategic plan rather than a last-minute addition. Early collaboration in the design phase maximizes returns and creates a standout property that commands premium pricing.