Global climate change, demographic change and advancing mechanization of everyday life will go along with new ways of living. Temperature extremes, an ageing society and higher demands on a comfortable life will lead to the implementation of sensor based networks in order to create acceptable and improved living conditions. Originally, the idea of the smart home served primarily the efficient use of energy and the optimization of ventilation technology connected with new ways of constructing buildings (low-energy and passive houses, respectively). Today the term ‘smart home’ is also linked with the networking of home automation systems, home appliances and communications and entertainment electronics. Living in a smart home often makes also significant demands on the occupants who are required to drastically change some of their living habits. This review summarizes current findings on the effect of measured environmental parameters on indoor air quality, individual thermal comfort and living behavior in smart homes with focus on central Europe. A critical evaluation of available sensor technologies, their application in homes and data security aspects as well as limits and possibilities of current technologies to control particles and gaseous pollutants indoors is included. The review also considers the acceptance of smart technologies by occupants in terms of living habits, perceived indoor air quality and data security.