The Burrow
Mar 6, 2026
From voice-activated lighting to app-controlled heating and real-time monitoring, smart homes are transforming how we live. As households increasingly turn to home automation and connected smart home devices, technology is playing a growing role in improving comfort, convenience, energy efficiency and peace of mind. This takes many forms, ranging from smart thermostats that optimise energy use to advanced smart home security systems that protect what matters most.
However, adoption isn’t equal everywhere; factors such as infrastructure, affordability, digital connectivity and local demand all influence how quickly people embrace smart technology. To pinpoint smart home hotspots, the home and contents insurance experts at Compare the Market have explored which parts of Australia and the United States are best positioned for smart home adoption.
This study produces three rankings (US states, Australian states and territories, and the 20 most populated Australian cities), assessing how suitable each location is for smart homes based on five key indicators spanning general smart home search interest, energy infrastructure and smart security search interest, electricity costs and internet accessibility. All data was normalised to a 0-1 scale, combined into an overall score out of 100 using weighted factors, and ranked from highest to lowest to highlight the strongest environments for smart home adoption.
The result is a data-led snapshot of the locations emerging as smart home hotspots, revealing where technology, infrastructure and lifestyle align to support the next generation of connected living.
Australia’s smart home landscape varies significantly by state and territory and is influenced by smart home search interest, connectivity efficiency, energy costs and consumer interest in home automation.
The Australian Capital Territory ranks first overall, recording 468.5 smart home searches per 100,000 people, strong energy and electricity-related search interest (755.5), average residential electricity costs of AU$0.27 per kWh, and an Australian Digital Inclusion Index (ADII) score of 79.5 – a measure of digital inclusion across dimensions of access, affordability and digital ability.
Victoria places second, driven by high general smart home search activity at 466.7 searches per 100,000 people, solid energy infrastructure interest (549 searches), competitive average electricity pricing of AU$0.25 per kWh, and a strong ADII score of 79.5. All of these factors support the widespread use of smart home devices.
New South Wales comes in at number three, with general smart home search interest of 461.6 per 100,000 people, high engagement in security and convenience searches (557.5), and an energy infrastructure search activity of 575.6. Electricity prices average AU$0.27 per kWh, and the ADII score comes in at 74.0.
When we look at cities, smart home readiness is closely tied to digital infrastructure, energy connectivity and consumer demand for smart home devices, with major metropolitan areas leading the way.
Sydney ranks first nationally, recording the highest level of general smart home searches at 597.1 per 100,000 people. Sydney also records strong energy infrastructure search activity (678.9), high security and convenience searches (671.4), average state-level electricity costs of AU$0.27 per kWh, and an ADII score of 74.0.
Melbourne places second, delivering a well-rounded performance with general smart home searches at 498 per 100,000 people, excellent energy infrastructure search activity (589.9), and strong security and convenience engagement (748.7). The state of Victoria also offers comparatively affordable electricity costs of AU$0.25 per kWh, and an ADII score of 74.1.
Brisbane is number three, supported by high general smart home search interest at 500.8 per 100,000 people, strong energy-related searches (754), and solid security and convenience demand (504.1). It also has an average state-level electricity price of AU$0.26 per kWh and a score of 72.9 for the ADII, making the city well-suited for home automation.
Not all cities offer the same foundations for smart home adoption, with infrastructure and connectivity playing a decisive role.
The Sunshine Coast (score of 5.94) records the lowest overall performance, largely driven by the lowest search volume for both general smart home queries and security search terms, limiting the practical rollout of connected smart home security and automation systems.
Meanwhile, Geelong ranks just above the Sunshine Coast with a score of 10.78. This reflects the lowest energy infrastructure searches and average state-level electricity prices.
Across the United States, states ranking highest for smart home adoption typically combine faster Wi-Fi download speeds, electricity prices around US$0.16 per kWh, and high per-capita search interest in smart home, energy and home security technologies.
Virginia ranks first overall, supported by strong general smart home search interest (1,070.1 searches per 100,000 people), high engagement in energy and electricity-related searches (855.6), high security and convenience searches (417.1) and impressive average Wi-Fi speeds of 230.49 Mbps.
Oregon places second in the USA, combining high smart home search activity (1,429.7 per 100,000 people) with strong energy infrastructure searches (644.4), and solid security and convenience interest (366.3). Oregon also offers electricity prices of 16.16¢/kWh (USD) and average Wi-Fi speeds of 209.69 Mbps.
Finishing off the top three, Colorado’s ranking is driven by consistent general smart home interest (1,116.1), high energy and electricity search activity (854.9), security and convenience searches of 389.9, electricity prices averaging 16.26¢/kWh (USD) and competitive average Wi-Fi speeds of 219.79 Mbps.
While many states show strong potential for smart home adoption, higher energy costs and weaker connectivity can limit the practical benefits of smart home security and automation.
Hawaii ranks at the bottom of the index (score of 7.43), largely due to exceptionally high average electricity prices of 39.74¢/kWh (USD), which can significantly reduce the cost-efficiency of energy-intensive smart thermostats and connected systems.
Alaska also performs poorly overall (score of 9.24), with the second-lowest average Wi-Fi download speed nationally at 125.09 Mbps, restricting the reliability and performance of always-connected smart home technologies.
As more households embrace smart home technology, understanding how it can impact your finances becomes increasingly important. From smart thermostats to security systems that run around the clock, connected living can deliver real efficiency gains when paired with the right cover.
Comparing your options for home and contents insurance can help you to manage costs and make the most of your home automation investments as adoption continues to grow.
Adrian Taylor, Executive General Manager of General Insurance, adds: “Having the ability to control your home environment via smart devices not only means you can improve your comfort and safety, but it can also influence the cost of policies that are available to you. You may notice a reduction in your premiums if you have specific features in operation, such as cameras, security alarms or biometric locks. These safety measures can also be useful if you ever need to make a claim with your insurer.”
Regardless of the policy you are interested in, it’s a good idea to check the Product Disclosure Statement (PDS) and Target Market Determination (TMD) so that you are aware of any limits, restrictions or exclusions.
This dataset contains 3 rankings: one ranks US states, another ranks Australian states, and one ranks the 20 most populated cities in Australia, based on how suitable they are for smart homes by using 5 key factors. Each factor’s data was collected and normalised to a score between 0 and 1. If data was missing, a score of 0 was given. These scores were then combined to give each location a total score out of 100, and locations were ranked from highest to lowest.
The factors used were as follows:
The factors were weighted as follows:
Indexing rules:
All data is correct as of 23/01/26. The ranking data shown is a compilation of multiple data sources and may not be representative of real life. All data is accurate with regards to the sources provided.
Our 2023 analysis can be found here.