A hybrid workstyle is becoming more common post-COVID-19, and longer occupancy hours at home are increasing household electricity consumption. Small homes are regarded as a potential for improving energy efficiency in the residential sector, and a home consists of mixed-function spaces with dynamic occupancy behaviors. These underpin the opportunity to optimize presence sensing lighting in small homes for energy efficiency and user-behavioral needs. A comprehensive overview of presence sensing approaches, comparing four types of non-wearable sensors connected to home lighting is made. A bibliometric mapping of the reviewed literature visually reinforces a significant research gap that presence sensing studies were not connected to home lighting but inclined toward the commercial and institutional context. Next, a non-exhaustive example of commercially available presence sensing products applicable to residential lighting for small homes is analyzed, and their general characteristics and technologies are synthesized. The literature and product overview identified five significant product knowledge gaps. Incorporating the gathered information leads to the proposal of a conceptual flexible radar-based sensor (prototype design), addressing a wish list with three important criteria to optimize future presence sensing lighting in a mixed-function small home. Future radar sensing studies are expected to develop an anticipatory lighting system that processes real-time multi-user vital signals for smarter localized and personalized lighting options for (small) living environments.