The Raspberry Pi 5 is the best Home Assistant hub you can get for cheap

Published Nov 14, 2025

Jeff's been involved in the IT industry since before the Internet and spent more than 20 years working in technical support, system administration, network administration, and consulting roles. He holds an undergraduate degree in English, a Master's degree in English with a focus on professional writing and editing, and another Master's degree in Computing & Information Systems.

After teaching university English and computer science for a few years, Jeff launchedhis writing career. He's written forMacworld,Tom's Hardware,groovyPost,The Mac Observer, and more before beginning here at XDA.

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TheRaspberry Pi 5 has become the new benchmark for affordable home automation. For years, the Pi line has been the default choice for makers and hobbyists, but the latest model finally delivers performance that competes with dedicated mini PCs. At the same time, it remains inexpensive enough for anyone to start building a smart home hub without financial risk.

The Raspberry Pi 5 is an easy recommendation forHome Assistant users, thanks to its combination of price and performance, making it fast enough to handle complex automations and integrations while remaining efficient for continuous use. As an open and adaptable platform, it offers full control over your home’s connected devices without compromising privacy or flexibility to a vendor’s cloud. This isn’t just a minor upgrade from its predecessor; it’s a generational leap that transforms an inexpensive single-board computer into a formidable automation hub.

Why the Raspberry Pi 5 redefines value

Hardware and performance that finally align

Older Raspberry Pi models could handle Home Assistant, but they often required patience. The Pi 5 replaces that sluggish experience with a 2.4GHz quad-core Cortex-A76 CPU, faster memory, and optional NVMe storage. Those upgrades give it a real sense of headroom. Dashboards load quickly, automations fire without delay, and it handles multiple add-ons simultaneously without stuttering.

This new hardware makes the Pi 5 suitable even for power users running camera integrations or energy-monitoring tools. It can handle simultaneous MQTT, ESPHome, and Zigbee connections while maintaining low latency. That means lights turn on instantly, sensors report in real time, andeverything feels smoother than before. It’s the difference between “it works” and “it works effortlessly.”

Even with all this new muscle, it remains efficient. Power draw hovers in the single digits under load, making it cheaper to run than any mini PC or commercial smart hub over time. The Pi 5 delivers high-end responsiveness while staying true to its low-cost, low-power roots. That’s a rare combination in home automation hardware.

Real reliability for 24/7 operation

Home Assistant demands stability because it runs constantly. The Pi 5 delivers that by design. Thermal control has improved significantly with active-cooling accessories, enabling continuous operation without throttling. NVMe storage support also eliminates the reliability issues that plagued SD cards on earlier models.

It’s important to note that you’ll get the best performance and longevity by paying close attention to both active and passive cooling, as well as your choice of storage medium. Allowing the Raspberry Pi 5 to run too hot can decrease its performance (thank you, CPU throttling) and shorten its lifespan. Likewise, relying on micro SD cards for long periods of time will quite often result in corrupted files, requiring a restore or reinstall.

Those storage improvements aren’t just about speed. They mean fewer corrupted databases, faster snapshots, and more dependable recovery if something goes wrong. Users who have dealt with SD failures will immediately appreciate how professional the system feels when running from a proper SSD. It’s a clear quality-of-life improvement that adds long-term value.

Combine all of that with a strong software ecosystem, and the Pi 5 becomes something you can install once and leave running for years. Its updates are simple, and recovery options are well-documented by the community. In practice, it behaves like an appliance, not a hobbyist toy, and that’s exactly what a modern smart home hub should feel like.

Outperforming commercial smart home hubs

Freedom that closed systems can’t match

Commercial hubs like SmartThings or Hubitat make automation accessible, but restrict what you can do. They depend on vendor clouds, lock certain features behind subscriptions, and limit integrations to supported hardware. With the Raspberry Pi 5 and Home Assistant, those limitations disappear. You get full local control, open-source flexibility, and direct access to device integrations.

That freedom translates to better performance. Without waiting on cloud requests or dealing with rate limits, automations run immediately. You can connect Wi-Fi, Zigbee, Z-Wave, and Thread devices using affordable dongles, all unified through a single interface. The Pi 5’s processing power ensures that everything keeps up, even as your device count grows.

The best part is that it scales effortlessly. Whether you’re managing a few smart lights or dozens of sensors, the Pi 5 doesn’t flinch. It delivers enterprise-grade automation performance in a package smaller than most routers, without proprietary restrictions or recurring fees.

Direct comparison to major brands

When stacked against popular hubs, the difference is clear. Hubitat and SmartThings both rely on limited hardware and firmware that restrict updates. The Pi 5, running Home Assistant OS, receives ongoing feature improvements from an active global community. Every month brings better integrations, refined UI elements, and optimized code paths that improve response time.

Commercial hubs also tend to be slower to adopt emerging standards. Matter and Thread are still rolling out unevenly across brand ecosystems, while Home Assistant has already integrated both. The Pi 5’s open environment lets you update components independently, rather than waiting for a manufacturer’s roadmap. You’re never stuck waiting for a firmware release to support your latest smart bulb.

Performance-wise, the Pi 5 also wins in resource management. It canhandle multiple add-ons, such as Node-RED and Grafana, while simultaneously managing Zigbee networks. Commercial hubs can rarely match that multitasking capability without choking. It’s impressive that a $60 board can so completely outclass purpose-built devices costing twice as much.

The ecosystem that makes it stronger

One of the biggest advantages of the Raspberry Pi 5 is how naturally it fits into the broader Home Assistant ecosystem. Everything from installation to maintenance feels straightforward. Flashing the OS image with Raspberry Pi Imager takes minutes, and restoring backups is almost instant. For newcomers, this simplicity means fewer frustrations and faster results.

Experienced users also benefit. You can easily migrate configurations from older boards or even from Docker installations on other systems. Add-ons such as Mosquitto, ESPHome, and backups can be deployed with a few clicks. That simplicity makes the Pi 5 feel far more polished than the DIY label suggests.

The thriving community completes the package. Between official forums, GitHub discussions, and third-party guides, nearly every problem has a well-documented solution. This community support adds confidence and longevity to the platform in a way that no commercial hub can replicate.

Why some people still look elsewhere

The DIY setup can intimidate new users

An HP ProDesk 600 G6 mini PC as a home server

For some, the Raspberry Pi 5’s flexibility is also its biggest hurdle. Unlike commercial hubs, it requires you to assemble components, install software, and occasionally troubleshoot issues. That setup process can feel daunting to someone who just wants a plug-and-play experience. Home Assistant’s power comes with a learning curve that isn’t for everyone.

Still, that extra effort pays off. Once configured, the Pi 5 offers more control and adaptability than most alternatives. You’re not bound to manufacturer limitations or subscription fees. The initial learning process is an investment that rewards users with a far more capable system.

Even for those hesitant to dive in, the community provides step-by-step guides and pre-configured images that reduce friction. It’s not as simple as unboxing a store-bought hub, but it’s more accessible than ever before. The Pi 5’s user experience continues to improve with each Home Assistant release.

Supply and accessory considerations

Raspberry Pi hardware can sometimes be in short supply, and accessories like NVMe adapters can slightly raise the total cost. While that’s less of an issue today than in previous years, it can still delay a build or make the setup more expensive than planned. Buyers need to factor in a power supply, storage, and cooling solution to complete the kit.

Fortunately, even with those extras, the total cost rarely exceeds $100. That’s still below most competitors, who offer half the capability. With careful sourcing and patience, anyone can assemble a reliable, high-performance hub without overspending.

Those willing to wait for official stock drops or buy from trusted resellers will find the Pi 5 worth every penny. Once the hardware is in hand, setup takes under an hour, and the resulting performance quickly erases any frustration from the buying process.

Why some prefer alternative systems

Some folks choose tohost Home Assistant on mini PCs or NAS devices instead. These systems can handle heavier workloads, such as multiple camera streams or additional VMs. They also often include more built-in storage options. For those users, the Pi 5 might feel limited, even if it’s overkill for the average smart home.

That said, the cost-to-performance ratio still favors the Pi 5. A capable x86 mini PC can cost three to five times as much and consume several times more power. Over a year of 24/7 operation, that energy difference alone can offset the price of another Raspberry Pi.

So while alternatives exist for high-end setups, they don’t make the Pi 5 any less compelling. It remains the best choice for entry-level and mid-tier users who want high performance without the overhead of larger systems.

But the value still outweighs everything

The total package makes it unbeatable

Seeed Studio's XIAO 7.5-Inch eInk Display showing task list and weather

When all factors are considered, the Raspberry Pi 5’s advantages are undeniable. It combines power, flexibility, and affordability in a way no commercial or DIY alternative can. It’s quiet, efficient, and endlessly customizable. More importantly, it delivers consistent performance as your smart home grows.

The Pi 5’s low energy consumption and open-source foundation ensure longevity. You can upgrade components, swap storage, or change integrations without being locked into a vendor. That independence makes it a sustainable long-term platform, not just a temporary experiment.

In an era where cloud-dependent devices often die when servers shut down, the Raspberry Pi 5 represents the opposite philosophy. It gives you ownership over your automation, with speed and reliability to match. That’s real value, and it’s why it’s the best Home Assistant hub for the money.

Balancing capability and cost in a tiny package

The Raspberry Pi 5 hits a rare balance between capability and cost. It’s affordable enough for newcomers yet powerful enough to satisfy experienced users running complex automations. When combined with Home Assistant, it becomes a full-featured smart home controller that rivals hardware costing many times more.

For anyone serious about local control and performance, there’s nothing else like it at this price. The Pi 5 proves that the best smart home hub isn’t a commercial box or a subscription service—it’s a $60 board running open-source software that does the job better.