A home automation system and method for automatic control of controlled devices throughout a home. A unique architecture of occupancy sensors includes entry/exit sensors for detecting movement through doorways that separate rooms in the home, room motion sensors for detecting room occupancy, spot sensors to detect occupancy of specific locations within the rooms, and house status sensors to detect the status of certain parameters of the home. A central controller communicates with the sensors and controlled objects over a communications network, where the sensors and controlled objects can be added to the system in a ‘plug and play’ manner. The central controller controls the controlled objects in response to the entry/exit sensors, room motion sensors, spot sensors and the house status sensors. This control is accomplished by assigning each room to one of a plurality of room occupancy states, and to one of a plurality of room modes for creating desired room atmospheres using the controlled objects, which both dictate how the controlled objects are controlled by the central controller. The room modes travel from room to room as the occupant moves throughout the home, and multiple occupants can be using different room modes as they move about the home. The controlled objects also have controlled object states, which are used by the central controller to control the controlled objects.