September 29, 2025

SmartShots: Your Homebuilder Marketing Update – September 2025

Industry Updates 

September brings significant momentum for the housing industry.

The Federal Reserve cuts interest rates by 25 basis points, which brings the average fixed 30‑year rate to sub‑6.00%, and an additional two cuts expected by end of year. This is a major win for both home builders and homebuyers which would equate to lower rates meaning lower monthly mortgage payments and improved affordability, especially for those on the fence about making the home purchase.

In parallel, momentum is building in Washington around declaring a “National Housing Emergency,” according to Treasury Secretary Scott Bessent. The proposed actions could directly impact, regulation, supply and affordability across the U.S. housing market. Among the initiatives under consideration:

  • Lifting tariffs on critical building materials to reduce construction costs (such as steel and lumber)
  • Streamlining and developing a federal zoning and building codes to accelerate home development
  • Offering federal incentives for affordable housing construction
  • Reducing mortgage closing and development costs
  • Expanding down payment assistance programs

For homebuyers, this could signal increase affordable home plans and a softening of price pressures in the coming months. For builders and developers, it’s a key time to stay ahead of policy shifts and align your product and marketing strategies for 2026 to capitalize on renewed buyer interest and increased affordability.

SEM

The digital advertising battleground is tightening in high‑growth metros:

  • Google Search costs are rising in markets that saw a post‑pandemic development boom such as Austin, Phoenix, Dallas, Tampa, Charlotte, and beyond.
  • Even as some advertisers scale back due to slowed entitlements and constrained inventories, those still in the game are bidding more aggressively to capture the limited but active buyer traffic.
  • The result? Fewer advertisers, higher Cost‑Per‑Clicks, and fiercer competition in core metropolitan areas with opportunities emerging in the suburban and surrounding areas, as well as new emerging Google products.

What this means for you:

Even in markets where competition appears to shrink, the cost of Google Search ads keeps rising as remaining advertisers battle for limited traffic. To maximize ROI, builders and developers should look to new channels where demand is strong but competition is lighter. One of the most effective emerging opportunities is Google Demand Gen, allowing you to reach homebuyers earlier in their journey and achieving the objectives of both awareness and lead generation.