The High Cost of Bad Data: How Homebuilders Can No Longer Afford to Get It Wrong

Margins are the lifeblood of homebuilding businesses, but today, they’re stretched thinner than ever. High borrowing costs, supply chain volatility, and shifting regulatory policies already weigh on homebuilders’ ability to keep operations profitable.

But bad data poses an even more insidious threat to builders’ bottom lines.

A fragmented, outdated approach to managing information means costly mistakes compound across the entire building lifecycle. From land acquisition and permitting to pricing, sales, and construction, a lack of clean, accurate, and integrated data can stall projects, drive up costs, and frustrate buyers.

In an exclusive conversation with Chris Tonkinson, Head of Engineering at Cecilian Partners, and Todd Schoenfeld, Chief Technical Account Manager, we explore and uncover the full extent of the damage caused by bad data. They share real-world examples of lost time, wasted money, and missed opportunities, along with the urgent steps homebuilders need to take to fix them.

Bad Data: A Hidden Profit Killer

Most homebuilders don’t realize the extent of their data problems. Many operate with multiple disconnected systems, each controlled by different teams with their own spreadsheets, tools, and processes.

Most homebuilders and master-planned community developers don’t fully grasp the state of their data, let alone how to leverage it effectively,” says Todd Schoenfeld. "They have fragmented versions of sales data, pricing information, and construction schedules, but without standardization and a single source of truth, that data remains disconnected. In order to take full advantage of AI and modern technology, data health and consistency are critical—without them, even the best tools fall short."

This lack of centralized, accurate data creates ripple effects across the business:

• Land acquisition missteps: Builders overpay for lots or miscalculate demand based on outdated market trends.
• Construction delays: Inefficiencies in permitting, materials ordering, and labor allocation stall projects.
• Pricing errors: Outdated or incomplete data leads to mispriced homes and shrinking already-tight margins.
• Customer frustration: Poorly managed data can lead to double-booked lots, unexpected price hikes, and delayed closings.

The worst part? These problems aren’t isolated. If bad data causes a mistake on one project, it can replicate and amplify across an entire portfolio.

Real-World Impact: Delays, Lost Sales, and Wasted Time

Homebuilders often underestimate just how much bad data costs them in both time and money.

We’ve seen builders save four to six weeks just by cleaning up their approval processes,” says Schoenfeld. “They don’t realize how much time gets lost in back-and-forth emails and manual entry. They should be spending that time selling homes and getting permits through, not chasing spreadsheets.”

These delays have financial consequences. When builders fail to keep up with real-time market data, they risk building the wrong product at the wrong time—leaving them with unsold inventory or costly price reductions.

Tonkinson puts it bluntly.

Without good data, you can’t make good decisions. Period."

The Root Cause: Why Builders Struggle with Data

The problem isn’t just technology—it’s mindset and process. Homebuilders have been slow to adopt digital transformation compared to other industries, relying on outdated systems and manual processes that introduce risk.

We’ve talked to builders who don’t even realize they’ve sold the same home multiple times until months later,” says Tonkinson. “That’s real cost to the business—not just in rework and legal risk, but in brand reputation and customer trust.”

So why hasn’t the industry solved this yet? According to Schoenfeld, part of the issue is cultural. Many teams are accustomed to familiar processes and may resist shifting to a shared system, even when inefficiencies are clear. Change can feel disruptive, and teams may hesitate to adopt new data management practices without a structured approach to integration.

Another challenge is that builders don’t always know where to start. They might acknowledge the problem but get overwhelmed by the prospect of fixing it.

Some of the most productive/most effective situations we find ourselves in with clients are the ones where there are no existing systems at all,” says Tonkinson. “Because they don’t have bad habits that we need to undo first.”

The Path Forward: How Builders Can Fix Their Data Problems

For builders looking to stop the profit bleed, Schoenfeld and Tonkinson recommend a three-step plan:

1. Define the Business Problem First

• What challenge are you solving? Reducing construction delays? Improving sales forecasting? Eliminating mispriced homes?
• “Different builders need different solutions,” Schoenfeld explains. “You have to start with what’s costing you the most money.”
• Align data efforts with business outcomes—modern tools are only as effective as the clarity of the problem they’re solving.

2. Audit Your Data Landscape & Standardize Inputs

• Map out where data currently lives—spreadsheets, CRM systems, sales reports, construction software.
• Identify bottlenecks, inconsistencies, and gaps in data quality.
• Standardize key data points to create a single source of truth across sales, pricing, construction schedules, and operations.

3. Choose a Strategic Data Partner

• “You don’t just need a vendor—you need a partner who understands homebuilding and can help you implement real solutions,” says Schoenfeld.
• Look for expertise in data consolidation, process optimization, and AI-driven insights to improve decision-making.

The Competitive Advantage of Good Data

Builders who get this right don’t just cut costs—they gain a serious competitive edge. With clean, accurate, real-time data, they can:

• Make smarter land deals based on up-to-the-minute demand data.
• Reduce build cycle times by eliminating manual approvals and redundant steps.
• Improve sales and marketing strategies by knowing exactly what buyers want.

It’s no longer enough for homebuilders to rely on intuition and experience.

The industry is hungry for strategic deployment of technology,” Tonkinson says. “Builders are finally realizing that better data isn’t a ‘nice-to-have’—it’s essential for survival.”

The Time to Act

With homebuilders facing increasing financial pressures — rising costs, supply chain volatility, and economic uncertainty — bad data is no longer just an inconvenience. It’s an existential threat to profitability.

The good news? Builders who take control of their data now can turn it into a profit-driving advantage. Those who don’t risk falling behind in a market where every margin point matters.

Which side will you be on?

Key Takeaways for Homebuilders:

• Bad data isn’t just an IT problem—it’s a profit killer.
• Fragmented, outdated systems cause costly delays and mistakes.
• Builders who fix their data issues save time, money, and competitive position.
• The future of homebuilding is data-driven—those who adapt will thrive.