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Home Builder Digital Trends Report

IntroductionGraphic Language is a dynamic web design and digital marketing agency that has carved a niche in the homebuilding industry. With a mission deeply rooted in innovation, we take pride in creating digital solutions that drive results. Our team of creative professionals is dedicated to designing engaging websites, executing strategic marketing campaigns, and providing a suite of services that enhance online visibility and sales for home builders.

We’re drawing on our experience in the homebuilding industry to share invaluable insights to help home builder marketers bolster their digital initiatives. Our goal is leverage our expertise and findings to help guide your digital strategy so you can turn prospects into buyers.

Contributors: Chris Ochs, Brea Buffaloe, Teana Halford

Copyright © 2024 by Graphic Language, Inc. All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means without the prior written permission of Graphic Language, Inc.

What We’re Seeing

7 Tips for Creating Your 2025 Digital Marketing Budget

It’s budget planning season (again)! Even though it happens every year, it always feels more confusing than before. This time-consuming task can often feel overwhelming, especially with the rapidly changing digital landscape and the new challenges the year 2025 might bring.

To lighten the load, we want to make it easier for you this year by sharing invaluable tips, tricks, and insights we’ve acquired over our 27+ years of fulfilling the digital needs of home builders.

Understanding the importance of adapting to the digital world, we have compiled seven essential tips that will guide you in creating an effective and strategic digital marketing budget for 2025. These insights will help you allocate resources wisely, optimize your marketing efforts, and ensure a successful approach to connecting with your audience in the coming year.

First things first: ASK (AND ANSWER) SOME INTRODUCTORY QUESTIONS

Answering some basic foundational questions before allocating dollars to specific line items is key. Some of the most important questions to have answers to are:

Question 1: What are your goals for 2025?

Start with your sales goals (by region/division if applicable) and work back to appointments, leads, and website visits. If you have defined conversion rates for your particular business, great, use those. If you don’t, we have found the following to be a good rule of thumb for goal-setting purposes for online generated sales:

• Web Visit > Lead = 2%

• Lead > Appointment = 30%

• Appointment > Sale = 20%

So, as an example, if your sales goal is 50 homes, then working backward, you would need 250 appointments, 835 leads, and 41,750 website visits.

Quick Note: we tend to be conservative in our percentages in order to put more emphasis on top-of-funnel web traffic numbers. That way, if you convert at a higher rate, then you exceed your goals, and everyone wins. Also, you aren’t relying on “best in class” conversion figures just to meet your baseline goals.

Question 2: Did you meet your goals from last year?

If so, you might want to make some minor adjustments to incorporate new tactics and strategy and run it back. If not, you’ll want to try some new tactics.

Question 3: What is your total budget?

A good baseline for your total marketing budget is 1% – 1.5% of the total projected revenue for the year. Has anything changed within your markets?

Question 4: Has anything changed within your markets?

What does your land position look like? Have absorption rates changed? Are there any new competitors joining or old competitors leaving the market?

Question 5: Are you happy with your current website?

Your website should be treated like your most valuable storefront. It will get hundreds of times more traffic than any of your models, so make sure it is the best and most accurate representation of your brand. If, after an honest assessment, you need a major refresh or redo then you’ll need to make the necessary adjustments to your advertising spend (unless you can pull from capital reserves).

Question 6: Where should those digital dollars go?

Once you have answered the above questions, you can focus on allocating your marketing budget. Here are 7 highlevel tips for building a successful 2025 marketing budget to help you sell more homes.

Tip 1: Prioritize Digital

Digital is undeniable: 96% of home buyers use online tools during the home search process, and 47% look online as their first step. That’s why your budget should prioritize your digital efforts. We recommend allocating at least 65% of your marketing budget toward your online presence.

Investing in digital advertising can increase your visibility on various platforms where potential buyers are searching, from social media to property listing websites. Content creation should focus on educational and engaging materials that resonate with your target audience, positioning your brand as a trusted industry authority.

Tip 2: Treat Your Website Like Your Most Important Storefront

Your website’s role cannot be understated; it should serve as the ultimate sales tool in your arsenal. Just as potential buyers scrutinize every detail in a model home, they’ll also examine your online presence with equal attentiveness. Regularly investing in your website is comparable to seasonally redecorating a model home, ensuring it remains appealing and up-to-date.

Allocate funds for enhancements that align with the latest digital trends and user preferences, such as improving navigation, enabling faster load times, and ensuring it is mobile-friendly. Consider incorporating customer testimonials, virtual tours, and interactive content to engage visitors and maintain their interest. By continually improving your web presence, you can attract more visitors and convert them into prospective leads, contributing significantly to your marketing success in 2025 and beyond.

Tip 3: Don’t Forget Content

Even the best outreach strategy is worthless without proper website content. High-quality content is the backbone of your digital presence, setting you apart from competitors and reinforcing your brand identity. Dynamic photography and videography bring your brand to life, enhancing online viewing experiences. Highlight lifestyle and product shots that evoke emotion and connection, encouraging potential customers to envision your offerings in their own lives. As digital engagement continues to rise, video content becomes a key driver (91% of consumers want to see more online videos from brands), with platforms favoring it in algorithms. Complement visual content with powerful storytelling through SEO-optimized copywriting, boosting your site’s ranking and providing informative and engaging narratives.

Don’t overlook the significance of integrating user-generated content, such as reviews and testimonials, which can substantiate your brand’s credibility. Virtual tours and interactive elements like quizzes or tools can keep visitors engaged longer, increasing the likelihood of conversion.

Tip 4: Emphasize SEO

Organic search should be your biggest traffic source and leads (at least 40% of total traffic). However, don’t mistake organic search visits as “free” traffic; instead, they should be considered “earned” traffic. SEO is powerful for industries, like new home construction, where the buying cycle tends to be longer and more complex. This extended buying cycle offers additional opportunities to get your brand in front of prospects. While the monetary investment isn’t as much as your paid advertising sources, the time investment is usually much larger. SEO optimization requires a complex strategy of developing on-page and off-page ranking factors to ensure your website and content are ranked on search engines. Unless you have an SEO pro on staff, it is definitely worth setting aside some budget to hire an expert (like Graphic Language) to help you succeed.

SEO is not a set-it-and-forget-it tactic; it demands consistent effort and ongoing optimization. It involves a meticulous keyword research process, competitive analysis, and technical audits to ensure your website’s architecture is robust and search-engine-friendly. Regularly updating your website with fresh, relevant content and maintaining a well-structured site map is crucial for improving crawlability and indexing by search engines.

Additionally, local SEO practices, such as managing online reviews and optimizing for location-based searches, can significantly boost visibility in your specific market area.

Tip 5: Be Everywhere

It sounds more daunting than it actually is. The majority of builder website traffic (about 90%) comes from 4 primary sources: organic search (SEO), paid search (like Google Ads), social media (primarily paid Facebook/Instagram ads), and syndication sites (like Zillow and New Home Source).

Expanding your digital footprint across these channels ensures that your brand remains consistently visible where consumers spend their time online. By leveraging organic search effectively, you can capture users actively seeking

information, making your website a key destination in their research journey. Paid search amplifies your reach, placing your offerings in front of potential buyers at the precise moment of intent, which can lead to higher conversion rates.

Maintaining an active presence on social media platforms allows your brand to engage with audiences in real time, fostering community and trust through authentic interactions and targeted campaigns. Lastly, listing on syndication sites such as Zillow and New Home Source not only broadens your market exposure but also legitimizes your presence in the competitive real estate landscape. By strategically balancing these efforts, you can create a comprehensive marketing approach that maximizes your outreach and attracts a diverse range of potential leads.

Tip 6: Try Something New

In today’s competitive housing market, simply advertising on Google Ads and Facebook may not be enough to stand out. There are several hidden opportunities off the beaten digital path, from niche social networks to cuttingedge geolocation tools. Exploring niche social networks like Houzz or Nextdoor can connect you directly with niche communities interested in home design and local events.

Additionally, leveraging platforms like Pinterest allows you to share visually appealing content that inspires and attracts prospective buyers. Integrating geolocation technology into your marketing strategy can provide hyper-targeted advertising, reaching potential buyers when they are physically near a property or model home. Experimenting with new formats like podcasts or live streaming can offer fresh avenues to engage with your audience and showcase your expertise in the industry. By diversifying your approach and harnessing these innovative channels, you can position your brand as a forward-thinking leader in the housing sector, capturing the attention of untapped audiences and creating lasting impressions.

Tip 7: Stay Flexible

No matter how hard we try, homebuilding is an unpredictable business. Communities sell out sooner than expected, or land comes on later than anticipated. The best-laid plans in January aren’t always right come summer.

That’s why we strongly recommend building some contingency dollars into your budget to ensure you can adjust and try new things as opportunities arise. Fostering a culture of flexibility within your team is essential. Encourage open communication and collaboration, allowing for swift decision-making and innovative problem-solving. You pave the way for sustainable growth and long-term success in the competitive homebuilding arena by anticipating change and preparing for it.

Bonus Tip: Don’t ‘Set It and Forget It’

Your marketing budget is a living, breathing document that should be monitored and updated consistently throughout the year. Initiatives not working? Reallocate some dollars to a more successful tactic. Exceeding your sales goals? Pull back on your marketing spend a little bit (or keep it up and blow those goals out of the water if you have the land position). Land development delays in a certain area? Put a hold on your digital spending for a few months to save that money for pre-sale/launch activities.

Flexibility in your budget allows you to adapt to market dynamics quickly. Involving your team in the evaluation process can provide valuable insights and foster a collective sense of ownership and accountability. In the fastpaced world of homebuilding, remaining agile and adaptable ensures that your marketing efforts are efficient and aligned with your company’s evolving goals and the ever-changing market landscape.

Remember, the steps you take now in the budget planning process determine the success you will have in 2025! Don’t skimp on the front-end planning and reap the rewards in sales down the road. If you’re wondering how effective your current digital paid media strategy is, book a free digital strategy session or paid media audit with us. We’ll dive deep into your strategy and offer deep insights, actionable next steps, and an overall review to help you understand what’s working and where you can improve.

Paid Media Strategies

Keeping Up With the Nationals:

How to Use Paid Media to Stay Competitive

In today’s competitive housing market, it’s easy to feel overshadowed by large national builders with their massive budgets. But the good news? You don’t need a bottomless marketing budget to compete with them in the digital advertising space. In fact, with the right strategies, smaller home builders can thrive in paid media.

Here’s how you can make it happen:

1. Hyper-Target Your Audience

While big builders often cast a wide net, you have the advantage of focusing on niche, local markets. Use geotargeting and demographic filters to zero in on potential buyers in specific neighborhoods or regions. Platforms like Google Ads and Facebook Ads offer precise audience targeting, ensuring your message reaches people actively searching for homes in your area.

2. Leverage Retargeting to Stay Top-of-Mind

Retargeting is among the most cost-effective strategies to maintain brand visibility. If a visitor leaves your website without converting, retargeting ads serve as reminders of what they’re missing, encouraging them to return. You want to ensure the potential buyer can consistently recall the advantages of choosing your brand during their research phase.

3. Make the Most of Google Ads

Take advantage of long-tail keywords and Smart Bidding in Google Ads. Often, larger builders use standardized templates to set up their Google Ads account structures. In contrast, smaller builders have the opportunity to focus on trending searches in their region and tailor ad copy to resonate with those specific buyers. You can optimize your budget and maximize conversions by concentrating on local terms and using Google’s machine learning.

4. Offer Promotions to Drive Engagement

Use paid ads to highlight time-sensitive promotions, like discounts on upgrades, limited-time pricing incentives, or rate buy-downs. These promotions create a sense of urgency, helping you stand out against larger competitors and attracting value-conscious buyers. This approach boosts conversion rates without requiring a significant budget.

5. Capitalize on Lesser-Known Advertising Platforms

Beyond Google and Facebook, try Bing Ads and Nextdoor:

• Bing Ads: Bing’s lower competition and unique audience can offer more affordable clicks while reaching a different yet valuable segment of homebuyers.

• Nextdoor: This hyper-local platform allows you to target potential buyers directly in specific neighborhoods. It’s perfect for building community connections and generating high-quality local leads.

6. Create a Personable, Community-Based Feel

Working with large national builders often feels like being just another transaction. As a smaller builder, you have the unique advantage of fostering personal connections with your buyers. Consider hosting open houses that resemble community events rather than just sales opportunities. Build trust by including local vendors, creating a welcoming atmosphere, and demonstrating your community involvement. Highlight the personalized customer experience you offer in contrast to larger non-local builders. Using paid strategies to promote this can effectively grow your audience, re-engage those who haven’t yet converted, and increase brand awareness in an enjoyable and informative manner.

In the ever-evolving world of home building, smaller builders are not only capable of surviving but thriving in the digital landscape. Smaller builders can effectively compete with larger corporations by adopting targeted advertising strategies and harnessing the unique advantages of their size. Embrace these strategies, and you’ll be well on your way to establishing a compelling market presence that sets you apart in a competitive housing market.

Content Marketing Trends

Why Content Marketing Matters More Than Ever

More than 90% of homebuyers now begin their search for a new home online, meticulously scouring the web for the perfect home and builder. This means a robust online presence is no longer a luxury in today’s digital-first environment—it’s an absolute necessity.

The traditional methods of word-of-mouth and print advertising are no longer sufficient to capture the attention of discerning buyers. Instead, content marketing has emerged as a crucial strategy to actively engage audiences, nurture trust, and compete effectively—even against larger builders with substantial budgets.

The Power of Engagement and Trust

Content marketing is more than just sharing articles or posting updates on social media; it’s about creating valuable, relevant content that resonates with your target audience. For home builders, this means showcasing your expertise, understanding your buyers’ pain points, and providing solutions that build trust.

• Educational Content: Share blog posts, videos, and infographics that educate potential buyers about the home-building process, design trends, and maintenance tips. Educational content positions you as an expert in the field and helps demystify the complexities of homebuilding.

• Customer Stories and Testimonials: Highlighting the experiences of satisfied clients can significantly boost your credibility. Testimonials and case studies provide social proof that your business delivers on its promises.

• Behind-the-Scenes Insights: Give your audience a glimpse into your day-to-day operations. Whether a video tour of a building site or an interview with your design team, behind-the-scenes content humanizes your brand and fosters a deeper connection with your audience.

Content marketing allows home builders to reach a wider audience by providing valuable information that draws potential buyers to their websites or social media platforms. This is a cost-effective and indispensable tool in your marketing arsenal.

Optimizing for Local Search

Content marketing can dramatically enhance your online visibility from a local search perspective. Home buyers typically start their search online, often looking for builders in their specific geographical area. Here’s how you can leverage content marketing to dominate local search results:

• Local Keywords: Incorporate local keywords into your content. Phrases like “home builders in [City]” or “custom homes in [Neighborhood]” can help your website rank higher in search results.

• Google My Business: Maintain an active Google My Business profile. Regularly update it with new posts, respond to reviews, and ensure your contact information is accurate. Doing so will boost your local SEO and make it easier for potential clients to find you.

• Local Content: Create content that speaks directly to your community. Highlight local events, partnerships with other local businesses, and impactful community projects. This not only improves your SEO but also strengthens your local presence.

Regularly updating your content will improve the user experience and enhance their SEO efforts. This dual benefit ensures that your website remains fresh and valuable, increasing your visibility online. Having an active blog is especially helpful for smaller or scattered lot builders who don’t make a lot of community updates on their main website.

Competing Against Larger Builders

One of the most significant advantages of content marketing is its ability to level the playing field. While larger builders may have bigger budgets and more resources, smaller builders can still effectively compete by creating high-quality, targeted content.

• Niche Expertise: Focus on niche areas where you have specialized knowledge or unique offerings. Whether it’s eco-friendly homes, luxury builds, or master-planned communities, highlighting your expertise in specific niches can attract highly targeted traffic.

• Agility and Authenticity: Smaller builders often have the advantage of being more agile and authentic. Use this to your benefit by promptly addressing customer inquiries, being transparent about your processes, and showcasing your personal touch.

• Consistent Publishing Schedule: While larger companies may have more resources, consistency is vital in content marketing. Regularly publishing valuable content ensures you stay top-of-mind for potential clients and search engines.

Smaller builders can capture the attention of potential homebuyers by consistently producing high-quality content. It’s worth allocating resources to creating valuable content that attracts and converts.

Content marketing is not just a trend; it’s a vital strategy home builders must adopt to stay competitive. Home builders can thrive in a crowded market by incorporating these strategies. The key is to remain authentic, consistent, and genuinely interested in solving your audience’s problems. Content marketing is not a one-time effort but a continuous engagement, education, and trust-building process.

Update: Impact of Rates on Search Activity

The relationship between interest rates and home search activity is dynamic, particularly in the current economic climate. For home builders, staying attuned to these fluctuations is crucial for strategic planning and market positioning.

The Inverse Relationship Between Interest Rates and Search Activity

In our first newsletter, we highlighted the noticeable trend of the inverse relationship between mortgage rates and search activity for homes. Simply put, search activity slowed down as interest rates climbed, and vice versa. This fundamental principle has been especially evident over the past year as the Federal Reserve’s monetary policy has evolved.

Over time, search activity normalized - and sometimes picked up again - even when rates increased as buyers adjusted to this “new normal” of higher rates.

The Fed’s Rate Cuts and Their Immediate Impact

In September 2024, the Federal Reserve reduced rates by half a percentage point, the first cut since the pandemic began in March 2020. This move was highly anticipated, and its effects were quickly felt in the housing market. Before the announcement, the average mortgage rate for the week of September 12 was 6.20%. By the week of September 19, the average rate had adjusted to 6.09%.

Anticipated Trends and Market Expectations

With interest rates potentially decreasing further, we anticipate continued improvement in search activity. Many buyers are hedging their bets, preferring to wait for these anticipated rate cuts before purchasing. This “wait-andsee” approach is a double-edged sword. While it can lead to a surge in demand when rates finally drop, it also means a temporary lull in market activity.

Challenges

and

Opportunities in the Housing Market

Despite the potential for lower rates, there are several challenges and opportunities that home builders need to consider:

• Buyer Hesitancy: Buyer hesitancy despite falling rates is a critical issue. This hesitation could be due to seasonal factors, economic uncertainty, or a belief that rates might drop even further. The conventional logic of lower borrowing costs stimulating home purchases may not fully apply in the current environment.

• Potential Headwinds: While lower rates are generally favorable, there are broader economic factors, like election jitters and a weakening labor market, that might dampen the expected boost in home purchases and household spending.

Strategic Insights for Home Builders

Given these insights, home builders can adopt several strategies to capitalize on the evolving market dynamics:

• Enhanced Marketing Efforts: Leverage the anticipation of lower rates by ramping up marketing efforts. Highlight the potential savings buyers can achieve with the expected rate cuts.

• Flexible Financing Options: Offer flexible financing options to attract buyers who are on the fence. Lock-in rates or incentives for early purchases can make a difference.

• Community Engagement: Engage with potential buyers through community events, webinars, and informative content to build trust and address their concerns. Transparency about market conditions can go a long way in fostering confidence.

• Leverage Data Analytics: Utilize data analytics to track search activity patterns and adjust marketing strategies accordingly. Understanding the nuances of buyer behavior can help in targeting efforts more effectively.

The interplay between interest rates and home search activity is complex and multifaceted. For home builders, navigating this landscape requires a keen understanding of economic trends and buyer psychology. Home builders can turn potential challenges into opportunities by staying informed and adaptable, ensuring sustained growth and success in a fluctuating market.

What We’re Talking About

Top Paid Media Strategies to Boost Traffic & Leads

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Mastering Facebook Ads to Boost Engagement and Drive Results

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Creating Content for Every Stage of the Buyer’s Journey

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Content Marketing 101: The Ultimate Guide

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Short-Form vs Long-Form Content

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Content Marketing Myths to Stop Believing

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Boost Your Digital Marketing Strategy in 2025

Need help with your digital marketing strategy? With over 27 years of experience working exclusively with home builders, we know what works. Connect with us to see how we can help fine-tune your digital marketing strategy.