Marketing matters. The housing industry can be a rollercoaster, and we’re here to prepare you for the good, the bad and everything in-between. This series aims to help builders learn the answer to a frequently-asked question: why does marketing matter? 

Both buyers and builders alike are experiencing the effects of the current housing market. Millions of Americans are on the hunt for their next home almost a year into the global pandemic—whether they’re first-time homebuyers, upsizers or rightsizers. Builders are struggling to keep up with the extreme demand for homes, and buyers are desperate for places with more square footage, outdoor space and bonus rooms like studies or home gyms.  

In an ideal world, you’d develop more communities and build more houses, increasing the supply to offset the demand. But the state of the world for the past year has left suppliers short-handed—71% of contractors recently reported at least one material shortage, with the most common being lumber. 

So chances are, your inventory is low or maybe even nonexistent. You might be looking for areas to trim the budget, or a way to give your team a bit of a breather after a chaotic year. If you think marketing should be rolled back slightly or significantly due to your low inventory, here’s a few things we want builders to consider. 

The housing market is unpredictable 

Although this goes without saying, the housing market is temperamental and can go with—or against—any of the predictions made. Four key factors typically drive the real estate market, including demographics, interest rates, the economy as a whole and government policies. These four factors are all experiencing extreme shifts in our country—the ongoing impacts of COVID-19 on the economy, low interest rates, a new president and new demographics of homebuyers (millennials and Gen-Z). But as the vaccine rolls out, the economy slowly recovers and a sense of normalcy is somewhat restored, the market can shift in an instant. We also don’t know the timeline for these changes, which only adds to the uncertainty of what the housing market will look like in the coming months or years. 

As a builder, the last thing you’ll want to be doing when the industry shifts is scramble to adjust your marketing strategy, or (even worse)—prepare one from scratch. Marketing matters when the demand is high and the supply is low, and vice versa. By keeping your paid social advertising on, organic social media consistent, blogs newsworthy and website updated, you’re always ready to guide a prospective buyer straight to you for their next home. 

Brand awareness is always important 

Your company might not have many homes to sell right now, but that doesn’t mean you can’t get buyers in your target market excited about the next houses or neighborhoods you build. Consistent marketing efforts help to build brand awareness, thus showing prospective buyers more about your mission, your story, your products and your process. 

Making a memorable impression on buyers now will lead them back to you in the future. In fact, they might even wait out your current inventory shortage because they’re compelled to work with you later down the road, when the time is right for both parties. One way to really capitalize on this opportunity is by creating a VIP list for upcoming projects using email marketing. 

By showcasing your past work, sharing updates on developing neighborhoods and getting involved in the communities that buyers hope to call home, your brand will be top-of-mind when the market has settled down.  

You can learn from past and potential buyer behavior 

Analytics from your website, SEO rankings and paid advertising data are perhaps the most useful aspects of your marketing strategy when there isn’t much product to push. By getting real-time results about how potential buyers are interacting with your brand in the digital world, you can see what people are looking for from your company. 

Is there a specific city or community that’s getting more traffic than most? Perhaps that’s where a new community or phase would pay off, when you’re ready to start building. Are users exiting from your site quickly after getting to the home page? Maybe it’s time to consider investing in website upgrades and updates to enhance the user experience. Noticing a shift in what homebuyers are searching for online? Identify new keywords your team should incorporate into your digital strategy to increase visibility and attract new customers. 

Marketing will always benefit the builder 

Although a low inventory when demand is high may seem like a missed opportunity, builders have to recognize how fortunate they are to be selling out of homes and communities during such crazy times in the world. But the market won’t be like this forever, and you’ll be back to competing with other area builders for the same target customers. Now is the time to differentiate your homes, your neighborhoods and your brand as a whole. 

Marketing matters, and Builder Designs can help you reap the benefits of a solid strategy. To learn more about our services and how we can help you win over future customers, download our newest ebook: The Home Builder’s Guide to Effective Content Strategy. For more information, call Amber at (913) 393-3367 or email amber@builderdesigns.com.