In this paper, we review an emerging type of dwelling, indicated as Smart Home, with a focus on future user lifestyles, needs and preferences. Researchers envision a future information society stemming from the convergence of ubiquitous computing, ubiquitous communication and intelligent environments, especially residential environment. Smart Homes have noble aims; they are said to be able to support different ranges of activities such as tele-working, tele-shopping, tele-communicating, tele-educating, tele-caring, etc. in the home environment. Moving from the industrial society to the information society will transfer homes from only being a sleeping accommodation towards being the most important hub of human life. A change that will dramatically affect the design of social places, work places, residential places, cities and future real estate business and maintenance models. In this paper, we investigate the major challenges of Smart Homes as a new dwelling concept. Surveys have shown that user acceptance of any changes in personal spaces is linked to user needs and preferences. In turn, user preferences are directly related to user lifestyles. Therefore, inspired by research in the field of user centered design and future lifestyles, we redefine the concept of housing to increase the acceptance and marketing of Smart Homes as future housing. By examining a number of examples, upcoming trends and developments in housing technologies and concepts are reviewed and analyzed. A multidimensional classification framework of a Smart Home suggested which allows a better understanding of the new elements and spaces of this future home environment. A new concept of a home environment is presented in which Virtual Space (VS) and Ambient Intelligent Space (AmI-S) are integrated with in the Physical Space (PS). Furthermore, possible changes for lifestyles as a result of activity changes enabled by new technological developments are identified. Linking the new home environment concepts comprised of VS, AmI-S and PS with the user_s lifestyles provides a research framework for the investigation of Smart Homes. Through this framework we expect to answer questions on the feasibility and impact of new technologies on real estate. Which architectural conditions may promote acceptance of these new technologies by users. The presented research framework is not only relevant for academic researchers but also for real estate investors, because it highlights the risks that need to be managed when developing smart real estate.