Building a Smart Home for $500, $2,500 & $10,000
Disclosure: some of the products in this build were provided by their manufacturers. I reached out and asked for each one specifically, so everything here is gear I'd choose either way. Any affiliate links are marked, the rest are just plain. My full sponsorship policy is here.
Smart homes have a reputation for getting expensive fast, and they absolutely can. But some of the most useful automations in my parents' place cost almost nothing. They just needed the right brain tying everything together. This is the companion to the video: a plain rundown of every product we used at each budget, roughly what it costs, and why it earned its spot. Every product links out to somewhere you can grab it.
Couple of ground rules, same as the video. We're not counting electrician costs, because rates vary wildly depending on where you are, and we're not counting gear you might already own. Prices are in Aussie dollars with a rough US conversion in brackets, they're approximate, and they're accurate as of August 2026.
The starting point
Everything here is going into my parents' place. It's a fairly typical 20 year old four bedroom home in the Melbourne suburbs, with solar on the roof, a spa in the yard, and the usual smattering of disconnected 'smart-ish' gear: some Google hubs, a couple of smart lights, a UniFi setup running the wifi and cameras. Basically a pretty good stand-in for a tech enthusiast's house. Bits and pieces of cool stuff that don't actually talk to each other yet. That's what we're fixing.
Tier 1: the $500 foundation
$500 doesn't buy much hardware. What it buys is a solid foundation: one good brain, plus a handful of cheap devices aimed at the highest value problems. Honestly, most of the wins in this tier came from just connecting gear the house already had.
Home Assistant Green - $280 (about $200 USD)
A worthwhile investment to get a solid starting point for your smart home. There are cheaper ways to run Home Assistant, yes, but there are very few that are easier.Nabu Casa subscription - optional monthly
Cloud backups and easy remote access, so a mistake never costs you everything.ESPHome MHI-AC-Ctrl units - $50 each (about $35 USD)
Full local control of splits that are otherwise a pain to integrate. It's a community-built board that wires straight into the unit.Athom ESPHome garage door controller - $22 (about $16 USD)
Dirt cheap and dead simple. It adds open and close, and it knows when the door's shut. Hard to beat.Athom smart plug - $18 (about $13 USD)
Automates the floor lamp for a bit of mood lighting when the movie pauses.Shelly puck + contactor - $80 (about $57 USD)
Switches the high draw spa safely. The contactor does the heavy lifting and the Shelly just tells it when. Bonus: the physical switch keeps working even if Home Assistant falls over.
We also moved an unused Samsung Frame TV onto the main living room wall in place of a tired old LCD. Didn't cost a cent, and it made the whole space tidier and more usable. The Frame is a terrible TV, but a good option for a room like the one it’s in, so it works alright.
Tier 2: $2,500, lighting, comfort and the first big time savers
With the foundation down, the next $2,000 or so goes on the stuff you actually touch every day. Lighting you can properly control, sensors to make it all smart, better sound, and the single best time saver in the whole build.
WLED controllers (x5) - $110 (about $78 USD)
Drop into the existing IKEA fittings to give you full colour temperature and brightness control.High-CRI adjustable-white LED strips - $110 for five lights (about $78 USD)
This is the actual light output. I went with quality strips for the warranty peace of mind, but you could definitely do it cheaper.24V transformers + low voltage cable - $120 (about $85 USD)
Powers the strips. The sparky ran these in the roof space for us.Shelly dimmers, 8 of them - $400 (about $285 USD)
Proper Home Assistant control of the existing living space lights, with the physical controls kept via momentary buttons.Momentary push buttons - cheap
Swapping toggle switches for these means the switch position never fights your automations.IKEA Timmerflotte temp and humidity sensors - about $15 (about $11 USD)
Feed the climate automations.IKEA Myggbett door sensors (x2) - $30 (about $21 USD)
Open up a whole stack of automation triggers.Home Assistant Connect ZBT-2 - $100 (about $71 USD)
Adds Zigbee and Thread to the Green, so the IKEA sensors connect without going anywhere near Google.IKEA smart bulbs - $80 (about $57 USD)
Smarten up the lamps around the house.Apollo MTR-1 sensor & presence-sensing planter kit - $80 (about $57 USD)
Hides an mmWave presence sensor in plain sight. Files are on the Stock Pot Store and Printables.Klipsch CS-16C in-ceiling speakers - $350 a pair (about $250 USD)
Great sound without wrecking the clean TV wall, and there was nowhere to put a soundbar anyway.Denon 2-channel amp - reused, or a Marketplace find
Powers the ceiling speakers and ties into Home Assistant and Music Assistant. I didn't count the cost, because if you don’t already have something lying around - you can probably get a bargain on marketplace!Refurbished Dreame X40 Ultra robot vac and mop ('Vinny') - $769 (about $545 USD)
The big ticket item of the tier, and a genuine time saver. Buying refurb saved thousands over a new flagship, and Matter support means no cloud faff.
Tier 3: $10,000, the nice to haves
We're well into diminishing returns here, but everything in this tier still earns its keep if you're spending the money. The last $7,500 or so goes on polish, insight, and two more big time savers.
Shelly Wall Display XL - $478 (about $340 USD)
A tidy 10 inch wall controller with physical buttons and a native Home Assistant mode. Proximity sensor, lux sensor and speakers all built in.Shelly 3EM Pro (3 phase switchboard energy monitor) - $269 (about $190 USD)
Per circuit energy data straight into the Home Assistant energy dashboard.SmartWings motorised cellular blinds (Matter) - $3,300 (about $2,330 USD)
Measure them yourself and they turn up ready to install. They add real insulation, and they're easily the best smart blind experience I've had.Luba Mini 2 robot mower ('Jason Mymower') - $3,400 (about $2,400 USD)
Lidar, no RTK antenna to muck about with, and a side cutter for clean edges. Like the vacuum, a massive time saver if you'd rather not do the lawn.
Which tier should you stop at?
Honest takeaway? The biggest jump in wow factor happened way before the expensive stuff. That first $500 barely bought any gear, but connecting what was already in the house started saving money and hassle straight away. Everything after that was genuinely nice, but it wasn't necessary.
So don't pick a number and blow it all in one weekend. Start with a good brain, connect what you've already got, and let your own habits tell you what's actually worth buying next. That's exactly how I built my own place, and it's why I still don't own half the things on other people's smart home lists. Wherever your budget lands, hopefully this gives you a bit of a roadmap. If you grab anything here the links are above, and let me know in the comments which tier you'd stop at.

