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What Does a Smart Home Actually Cost? A Real Melbourne Example

Published: 15 March 2026

Cost is one of the most common questions I get — and one of the hardest to answer without context. Every home is different, every wishlist is different, and the numbers you find online rarely reflect what a complete, properly designed system actually costs in Melbourne. So rather than give you vague ranges, here's a real example: a project for a household in Melbourne's inner west, walked through phase by phase with actual figures.

Names and personal details have been changed, but the scope, hardware, and pricing are real.

The Brief

The client had a standard residential home with a few specific needs. Their existing network was aging — a single consumer router with unreliable Wi-Fi coverage throughout the home. They wanted to add home automation: smart lighting, security cameras with AI detection, and environmental sensors. This shaped a two-phase project: network first, then automation.

Phase 1 — Network Infrastructure

Before any smart home gear goes in, the network needs to be solid. Unreliable Wi-Fi is the single biggest cause of frustrating smart home behaviour — devices going offline, automations failing at the wrong moment, and apps that won't respond. Getting this layer right first means everything built on top of it just works.

The aging consumer router was replaced with a Ubiquiti UniFi system — the same vendor used in commercial and enterprise environments, now well within reach for residential installs. The rack was rebuilt cleanly with proper cable management and labelling.

The network was also segmented into four VLANs — Main, Guest, IoT, and Security — so smart home devices and cameras sit on isolated network segments, separate from the household's main traffic. This improves both security and performance.

  • Hardware — $2,220 (UniFi Cloud Gateway, PoE+ switch, Wi-Fi 6 Pro access points)
  • Labour — $1,540 (design, installation, rack rebuild, VLAN configuration, documentation)
  • Initial onsite consultation credit — −$120

Phase 1 Total

$3,640

Network infrastructure — hardware, labour, and rack rebuild

Network costs vary more than most people expect. The figures above reflect a mid-range UniFi build for a full-sized home. A smaller home or unit might need only a single access point and a basic switch — bringing hardware costs down considerably. A larger home, double storey, or one with a big backyard requiring outdoor Wi-Fi coverage will push the hardware spend up. There are also different tiers of access points at different price points, and the number of ports on your switch depends on how many wired devices you have. The network design is always scoped to the home and the budget — there's no one-size-fits-all answer here.

Phase 2 — Home Automation

With a solid network in place, the automation layer was built on top. The core of the system is Home Assistant OS running on a dedicated mini PC — a reliable, always-on hub that orchestrates everything in the home. Unlike cloud-dependent platforms, Home Assistant keeps working even when the internet goes down, and it doesn't rely on any manufacturer's servers staying online.

Security cameras were connected through Frigate NVR, which uses OpenVINO acceleration built into the Intel N100’s integrated GPU to detect people, vehicles, and animals locally — no cloud subscription required, no footage leaving the home. Smart devices throughout the house communicate via a Zigbee mesh network managed by Zigbee2MQTT, giving reliable, low-latency control over lights, sensors, and switches. Remote access was set up via a Cloudflare tunnel, allowing secure access to the Home Assistant dashboard from anywhere without opening ports on the router.

A note on Nabu Casa: Home Assistant has an optional cloud subscription called Nabu Casa (approximately $9 USD per month). It's not required, but it's strongly recommended. It provides encrypted remote backups of your Home Assistant configuration, native integration with Google Home and Amazon Alexa without any extra setup, and a secondary external access path. That last point matters — if the primary Cloudflare tunnel ever goes offline for any reason, Nabu Casa gives us a fallback route to connect remotely and investigate without being locked out.

  • Hardware — $1,340 (mini PC, Zigbee dongle, sensors and switches)
  • Labour — $2,580 (HA installation and configuration, Zigbee mesh, Frigate NVR, automations, dashboards, remote access)

Phase 2 Total

$3,920

Home automation — hardware, software configuration, and setup

The Full Project Cost

Across both phases, here's the complete breakdown for the network rebuild and home automation install:

  • Phase 1 — Network infrastructure — $3,640
  • Phase 2 — Home automation — $3,920

Total Project Investment

$7,560

Complete network rebuild + full Home Assistant installation — configured, tested, and documented

What Drives the Cost?

A few factors account for most of the budget in a project like this:

  • Network hardware — the tier of equipment and the number of devices needed depends on the home. A unit or apartment is a very different scope to a double-storey home with a large outdoor area.
  • Scope of automation — the more devices, zones, and automations, the more configuration work. This was a comprehensive install, not a starter system.
  • Cameras and AI detection — Frigate NVR with OpenVINO acceleration delivers local, private AI detection without any ongoing cloud fees. It's optional if cameras aren't in scope.
  • Labour — quality configuration work takes time. Shortcuts are what lead to systems that sort-of work most of the time.

A smaller project — Home Assistant on an existing network with Zigbee devices, Cloudflare remote access, MQTT, and a set of automations — typically falls in the $1,500–$2,500 range depending on requirements. A full install like this one sits at the larger end, but delivers a system that genuinely runs the home.

What About Clipsal C-Bus? (A Separate Story)

Most homes won't have this — but if yours does, this section is for you.

Clipsal C-Bus is a professional wired lighting automation system found in some Australian homes built or renovated during the 2000s and 2010s. It's high-quality, reliable hardware — but it operates completely separately from modern smart home platforms, and its native interface feels dated. If you have C-Bus, you've already made a significant investment in your home's lighting infrastructure. The good news is you don't need to rip it out.

This client's home had C-Bus throughout. After the main project was complete, a separate variation was carried out to bring the entire C-Bus system into Home Assistant — so every light could be controlled through the same dashboard, included in automations, and operated by voice via Google Home alongside everything else.

  • Controller setup — connected to the C-Bus controller, migrated from static IP to DHCP, secured with new credentials, and registered on the UniFi network with a reserved IP address
  • Group address mapping — reviewed all C-Bus objects, documented every group address, and mapped each one to a human-readable name for use in Home Assistant
  • HA integration — configured the C-Bus integration in Home Assistant and confirmed bidirectional control: changes in HA reflected in C-Bus, and vice versa
  • Motion sensors — integrated C-Bus motion sensors into Home Assistant for use in automations
  • All Lights group — created a single group to switch off every C-Bus light in the home with one tap
  • External gate — integrated the automated gate into Home Assistant with a toggle control

The variation also included a complimentary three-month health check: updates applied, a new night-time wall lighting automation implemented, and a catch-up with the client on how everything was tracking.

C-Bus Variation Total

$960

Integration of existing Clipsal C-Bus system into Home Assistant

If you have Clipsal C-Bus and want to bring it into a modern smart home setup, get in touch — it's a very achievable integration and far more cost-effective than starting over.

Is This Right for Your Home?

Not every home needs everything in this project. If your network is already solid, you skip Phase 1. No cameras in scope, no Frigate. No C-Bus, no integration work. The advantage of a consultancy approach is that we start with what you actually want and work backwards to what's needed — not the other way around.

If you're curious what a project might look like for your home, get in touch for a free 15-minute call. No obligation, no jargon — just an honest conversation about what's possible and what it would cost.

Hardware Used

  • Ubiquiti UniFi Cloud Gateway — central router and network controller
  • Ubiquiti UniFi PoE+ Switch — powers access points and wired devices over ethernet
  • Ubiquiti UniFi Wi-Fi 6 Pro Access Points — enterprise-grade wireless coverage throughout the home
  • Intel N100 Mini PC — the small, low-power computer running Home Assistant OS
  • Zigbee USB Dongle — connects Zigbee smart devices wirelessly to Home Assistant
  • Clipsal C-Bus Controller — the central controller for the home's existing wired lighting system