Digital search is undergoing a massive shift — one that is redefining how consumers find and engage with information online.
Builders need to understand and adapt to these changes to keep pace and maintain a competitive edge. Traditional search engine optimization (SEO) and paid search advertising methods are losing their efficacy. Thus, pivoting towards more innovative and diversified marketing efforts is essential.
This article explores the current state of SEO, its implications for builders, and actionable steps builders can take to navigate this new terrain successfully.
The State of SEO for Builders
Google isn’t what it used to be. Gartner predicts search engine traffic will plunge a significant 25% by 2026. There are two primary reasons for this decline:
- Generation Z's preference for social search and AI platforms: Gen Z is redefining how information is found online. Instead of relying on traditional search engines like Google, they’re turning to social media platforms and AI tools like ChatGPT. In a survey that asked Gen Z where they preferred to search for information, Google ranked third, trailing behind Instagram and TikTok. This shift indicates Gen Z prefers more visual and community-driven search experiences. Instagram and TikTok offer curated multimedia content that might resonate more with younger users and provide them with engaging answers from peers and influencers.
- Increased use of AI-generated results: The rise of AI technologies, like ChatGPT, is changing how search queries are resolved. Currently, 60% of search results are zero-click. This trend is expected to grow as AI-generated summaries and responses become more accurate and comprehensive. While the initial impact is most noticeable in general question-and-answer scenarios, as AI capabilities advance, this will extend to more complex, high-intent searches typically associated with the bottom of the sales funnel. Eventually, AI overviews could fully address queries like “best builders in this area” or “I’m looking for XYZ, show me all available homes” and bypass traditional search listings altogether.
The Impacts of SEO for Home Builders
In a time when the nature of search is changing fast, builders need to know how it will impact them and what they should change about their current marketing strategy. There are three main pillars that builders will need to keep in mind:
- Home builder paid search campaigns need to be more effective. The effectiveness of paid search campaigns is diminishing, and it’s important for builders to know that the effort they’ve put into paid search in the past will not produce the same ROI now. The supply of prospects is shrinking while the demand is growing. A recent study showed that Google search advertising spend in the US rose 17% year-over-year in the first quarter of 2024. This increased spending is driving up the cost per click (CPC) by 13%, making paid search campaigns more expensive and less effective. As competition for a shrinking audience intensifies, builders will find it increasingly difficult to achieve the same marketing outcomes without significantly increasing their ad spend.
- Organic search campaigns are changing. The introduction of Google’s AI overviews has fundamentally changed how individuals find information. Traditional SEO strategies may no longer suffice as Google shifts towards AI-generated summaries that directly answer user queries. Most home builder websites are not optimized for these AI overviews — lacking essential elements like FAQs, topic clusters, and well-designed heading structures that align with AI-driven search algorithms. Additionally, much of their content is not written with AI in mind, missing opportunities to appear in AI-generated responses. Because Google assigns citations to these overviews based on sources that best align with the AI's answers, builders must test and adapt their content to ensure it responds effectively to AI queries.
- The landscape of SEO for builders is constantly evolving. Search has always been a critical pillar for any builder's marketing strategy and will remain important. But to meet growth projections, builders now need to rethink their approach to search. Change can be challenging, especially for seasoned marketing professionals who have seen significant success with past strategies. However, keeping pace with these changes is crucial; builders must embrace new technologies and methodologies to stay competitive. This transition will likely lead to a significant shuffle of professionals within the industry as companies strive for performance and adaptation. The shift will not occur without major disruptions to the continuity of operations, but it’s essential for long-term success.
Is Home Builder Paid Search Worth the Investment?
With 100% of buyers now shopping for homes online, it’s more important than ever for builders to keep pace with the current state of search. Despite Google losing 25% of search queries by 2026, the leads are out there; they’re just in different places and found in different formats now.
The state of search may paint a picture of doom and gloom, but it also presents an opportunity. We’ve seen shifts like this with Google before — when Google search came out, we shifted away from directories, and it opened up a new opportunity for SEO and paid search campaigns. When social media exploded, we shifted from broad messaging to very targeted campaigns, and personalized marketing took ground. With AI now disrupting the landscape, a new frontier is opening up. When each new frontier from both examples took hold, those who embraced it immediately saw unprecedented ROI and growth.
So, what should builders do? First, they need to diversify their marketing efforts.
Invest in social media search
Builders can keep pace with Gen Z preferences and the rising use of social media by investing in social media search features. These include:
- Testing short-form video: Builders can create engaging short-form videos showcasing their projects, processes, and customer testimonials to capture attention and drive engagement.
- Influencer marketing: Partnering with influencers who have a strong following in the home and lifestyle niches can help builders reach a broader and more targeted audience.
- Employee advocacy programs: Encouraging employees to share company content and insights on personal social media accounts can help amplify reach and humanize the brand.
Shift SEO strategies
Builders should optimize their content for AI overviews by:
- Updating websites for AI friendliness: Include features like comprehensive FAQs, topic clusters, and well-structured headings to make content more accessible to AI-driven searches. These elements help AI algorithms understand and categorize the information effectively.
- Investing in high-quality content: Create valuable, original content that addresses common questions and provides in-depth information. High-quality content is more likely to be cited in AI-generated overviews, enhancing visibility and credibility.
- Building reputation management campaigns: Customer reviews and ratings are increasingly important. Encourage satisfied customers to leave positive reviews and address any negative feedback promptly and professionally. Prospective buyers often search for information about builders' reputations, common issues, and top-rated builders in their area. A strong reputation will be a significant factor in search results.
Continue reallocating to other emerging strategies
Builders should also explore other innovative marketing strategies, such as:
- Over-the-top (OTT) advertising: OTT platforms offer targeted advertising opportunities to reach potential homebuyers where they spend their time. Tailoring ads to specific demographics can boost engagement and conversion rates.
- Experiential marketing: Creating memorable buyer experiences through events, virtual tours, or interactive showcases can help builders stand out.
- Customer delight campaigns: Focus on exceeding customer expectations at every touchpoint. Delighted customers are more likely to recommend your services and leave positive reviews, contributing to a strong reputation and boosted word-of-mouth referrals.
The search landscape is shifting, opening up new opportunities. Builders willing to experiment with fresh marketing approaches to adapt to changes in search will be best positioned for success. They can remain relevant and outpace their competition by staying current with AI technology and Google’s latest features.
Home Builder SEO Services
With an exclusive focus on new home sales, New Home Star has partnered with builders nationwide for over 16 years to expand their reach and increase their sales and conversion rates. They offer consulting services, including SEO services specifically for home builders to expand their reach locally and nationally.
Interested in learning more about our SEO services? We would love to connect with you!