Smart Home Interior Design
Interior Design

Smart Home Interior Design

Updated Mar 14, 2024
Jennifer Kowalski

Smart home interior design puts automation hardware into residential projects. This means designers work with electricians to run extra wiring during construction or remodeling. Back in 2016, maybe one in ten design clients asked about smart features. Now it's closer to six or seven out of ten. The difference is people saw their friends' homes with voice control and automatic blinds, they want the same thing.

Most designers charge 15-20% more for projects that include automation planning. The extra fee covers coordination time with tech installers and learning curve on new products. Some firms in San Francisco and Brooklyn won't take projects under $500,000 if automation is involved because the coordination eats up too much time on smaller budgets.

What Counts as Smart Home Design

A smart home has devices that connect to a network and respond to schedules, sensors, or voice commands. Lights, door locks, cameras, thermostats, speakers, window shades. Homeowners can control everything from phones or tablets, sometimes from car dashboards.

Nest released their learning thermostat in 2011, that kicked things off for mainstream adoption. Then Amazon Echo came out in 2014 and suddenly non-tech people were talking to computers in their kitchens.

Phillips Hue bulbs sold something like 10 million units in the first three years. The market grew fast because products got cheaper and easier to install.

How Designers Charge for This Work

Regular interior design runs 200 per hour depending on your market. Smart home design adds another 75 per hour because you're doing technical drawings and equipment specs on top of the aesthetic work. Fixed fee projects might be $8,000 for traditional design on a 2,000 square foot renovation, but 14,000 if you're integrating automation.

Design Fees

Regular Design 200/hr
Smart Design +75/hr

Project Management

10-15%

of equipment and installation costs

Project management fees run 10-15% of equipment and installation costs. So if a client spends $25,000 on smart home gear and labor, the designer takes 3,750 for coordinating the whole thing. Some designers skip the PM fee and just pad their hourly rate instead.

Equipment Nobody Tells You About

The Control Hub

You need a control hub. Could be Samsung SmartThings for $85, Hubitat Elevation for $130, or a Control4 system that starts around $2,500 installed. The hub talks to all your devices so they work together instead of needing six different apps.

Network Infrastructure

Then there's the network infrastructure problem. Standard home routers can't handle 40-50 connected devices very well. You end up specifying commercial-grade mesh systems, Ubiquiti UniFi is popular and costs 600 for a three-node setup covering 4,000-6,000 square feet. I've seen projects fail because nobody upgraded the network and half the devices kept dropping offline.

Power Backup

Power backup matters more than people think. When power goes out, the modem dies, the router dies, the hub dies, nothing works. A $200 UPS (uninterruptible power supply) keeps the core system running for a few hours. Clients don't want to pay for it until their $30,000 automation system stops working during the first blackout.

Smart Design vs Regular Design Work

Regular interior design focuses on furniture, finishes, fabrics, lighting aesthetics. You're picking paint colors and tile patterns and making sure the sofa fits through the door. Smart home design adds technical layers. You're drawing electrical plans showing exactly where each switch, sensor, and camera goes. You're writing specs for network cable runs. You're coordinating with electricians, low-voltage contractors, and programmers.

Timeline differences are significant. A traditional design-build project might take 4-6 months from concept to completion. Add smart home integration and you're looking at 6-9 months. The equipment lead times are unpredictable, automation programming happens at the end and always takes longer than quoted, and there's usually at least one compatibility issue that requires replacing something.

"The other thing is maintenance. Traditional design is done when it's done. Smart homes need ongoing attention. Firmware updates, replaced batteries in sensors, troubleshooting connectivity problems. Some designers offer maintenance contracts at 200 per month, others just give clients the installer's phone number and wish them luck."

Planning the System

Lighting

Start with lighting because it makes the biggest impact and clients understand it. Smart switches cost 85 each, dimmers are 95. A typical home has 20-30 switches so you're at 2,400 just for lighting control hardware before installation labor.

Audio

Clients always want to start with voice control and music in every room. That gets expensive fast. Sonos speakers run 450 per room, ceiling speakers are cheaper at 200 per pair but need amplifiers at 800 each. A whole-home audio system for a 3,000 square foot house costs 8,000 depending on how many zones.

Security

Security cameras are the third thing people ask about. Indoor cameras are 180, outdoor cameras are 300, doorbell cameras are 250. Storage is extra, most companies charge 15 per month per camera for cloud recording. Some clients want local storage which means buying a network video recorder for 800.

Climate Control

Climate control should be in every project. Smart thermostats are 250 for decent ones, 500 for the fancy models with room sensors. The payback is real though, clients save 10-15% on heating and cooling bills. That thermostat pays for itself in 18-24 months.

Window Shades

Window shades are where budgets explode. Motorized shades run 900 per window depending on size and fabric. A house with 20 windows is looking at 18,000 just for the shades. Clients freak out when they see that number. You can do retrofit motors on existing shades for 350 per window, that helps some.

Actually Installing This Stuff

Smart Home Installation
Coordination between electricians and low-voltage installers is critical.

New construction is way easier than retrofit. In new construction the electrician runs extra Cat6 cable to every room during rough-in, costs maybe 1,500 extra. Retrofit means cutting drywall or running conduit on the outside of walls, installation labor triples.

The general contractor needs to understand what's happening. I've had projects where the GC didn't leave space in walls for the equipment, didn't coordinate blocking for TV mounts, didn't rough-in power where the rack needed to go. You end up with change orders and finger-pointing.

Low-voltage installers handle the actual device mounting and programming. Good ones charge 120 per hour, cheap ones charge 65 but you get what you pay for. Programming takes forever. An installer might quote 8 hours and end up spending 16 hours getting all the automation scenes and rules working properly.

Testing happens at the end and always reveals problems. Some devices don't talk to each other even though they're supposed to. Wireless signals don't reach certain rooms. The client's expectations don't match what the system can actually do. Budget at least 10% contingency for fixes and changes.

What Clients Actually Use

Here's the thing nobody says out loud: clients use maybe 60% of the features you install. They love the automatic lights and smart locks. They use the thermostat and security cameras. The fancy multi-room audio mostly sits idle after the first month. Those motorized shades get opened in the morning and closed at night but the automated schedules get turned off.

Voice control is hit or miss. Some people use it constantly, others try it twice and give up. Depends on the household. Automation scenes like "goodnight mode" that locks doors, turns off lights, and sets the alarm are popular. Complex scenes with 10 steps that adjust lights, temperature, music, and shades based on time of day and occupancy? Too complicated, people don't use them.

The automation that works best is invisible.

Lights that come on when you walk in a room and turn off when you leave. Temperature that adjusts itself based on whether anyone's home. Door locks that automatically lock after 5 minutes. Clients don't think about it, it just happens.

Costs and Returns

Basic
10,000
Lights, thermostat, locks
Mid-Range
40,000
Security, audio, shades
Luxury
100,000+
Full buildout

The return on investment varies. Real estate agents claim smart homes sell faster, maybe that's true in tech-heavy markets like Austin or Seattle. Appraisers don't add much value for automation systems, maybe 1-2% of the equipment cost. The real value is quality of life improvement for the people living there.

Designers make good money on these projects if they structure fees correctly. The hourly rate premium plus project management fees plus ongoing maintenance contracts add up. A designer handling 5-6 smart home projects per year can add 70,000 to annual revenue. That's significant for small firms.

The market keeps growing. More products launch every month, prices keep dropping, installation gets easier. Five years ago this was a luxury niche. Now it's becoming standard in the $400,000+ housing market. Designers who understand automation have an advantage over those who don't.