As the dust settles from the 2024 Presidential Election and a new administration begins its transition into power, the U.S. homebuilding industry faces an era of profound uncertainty. Political shifts, economic volatility, and hesitant homebuyer behavior have created what many builders call a “wall of worry.”

It’s a perfect storm of challenges, but it also presents an opportunity for homebuilding enterprises to rethink their operations, especially when leveraging data to drive sales.

In this second installment of our series with Ed Carey, Founder and CEO of audience town, we dive deeper into the conversation about missed opportunities in understanding today’s homebuyers and explore actionable strategies for operationalizing structured data. With homebuyers grappling with affordability issues, mixed signals from the economy, and looming policy changes, builders must seize this moment to harness the power of data-driven insights to transform their marketing, product development, and sales strategies.

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The Landscape: Uncertainty Rules the Day

The post-election environment adds new layers of complexity to an already turbulent housing market. President-elect Trump’s proposed Day 1 policies—targeting undocumented construction workers, imposing tariffs on building materials, and promising regulatory overhauls—could dramatically reshape labor and supply chain dynamics. Meanwhile, interest rate volatility and affordability constraints are sidelining many would-be homebuyers, as highlighted by a recent Wolfe Research analysis.

• Affordability Challenges: Mortgage rates, which briefly dipped post-Fed rate cuts, have climbed again, leaving prospective buyers confused and hesitant. The average rate on a 30-year mortgage hovers between 6.5% and 7%, pushing monthly payments beyond reach for many.
• Mixed Buyer Demand: Entry-level buyers remain the most affected, often delaying purchases in hopes of rate reductions or policy shifts. In contrast, move-up and active-adult segments show more resilience, suggesting opportunities for targeted engagement.
• Rising Costs and Incentives: Builders have leaned heavily on incentives to maintain sales volumes, further squeezing margins. The lack of pricing power was a recurring theme in 3Q earnings calls, reflecting the competitive pressure in today’s market.

For builders, this confluence of factors underscores the importance of moving beyond gut instincts and into a more strategic, data-driven approach to customer engagement.

Why Now: Turning Uncertainty into Opportunity

Homebuying is the largest financial decision most consumers will ever make. Yet today’s buyers are navigating an unprecedented mix of volatility and risk. Their decisions are influenced by factors ranging from the cost-of-living crisis to fears of regulatory and economic upheaval. This is the moment for homebuilders to double down on structured relational data to understand and engage their customers with precision.

As Ed Carey notes in our latest conversation,

Builders who understand their customers at a granular level can do more than just sell homes — they can sell them smarter, faster, and with greater efficiency. This is the future of homebuilding.”

The Missed Opportunity: Why Builders Must Embrace Data

Our previous analysis explored the missed opportunities in how homebuilders gather and use customer insights. Many builders still rely on intuition or outdated tools, missing the chance to align their strategies with today's homebuyers' evolving needs and preferences.

Carey underscores this point with a case study:

One of our clients — a large national builder — realized through our platform that their million-dollar homes were attracting very different buyer profiles compared to their $600,000 homes in the same community. They pivoted their marketing approach, reduced wasted spending, and focused on quality leads. That data-driven shift helped them achieve sales they hadn’t thought possible.”

Operationalizing Data: From Insight to Action

Homebuilders' next step is to collect better data and operationalize it across their organizations. Carey emphasizes three critical actions for builders to take now:

• Empower Marketing Teams as Strategic Partners Marketing teams often hold the deepest insights into customer behavior, yet they are frequently siloed from key decision-making processes. Builders must integrate marketing into broader business strategies, from land acquisition to product development. One example Carey highlights involved marketing teams identifying a significant percentage of buyers as dog owners, leading to targeted promotions around dog-friendly features like built-in pet showers. This insight boosted community identity and sales velocity. Carey explains,

“When marketing teams are empowered with tools, data, and a seat at the strategic table, they can help drive not only sales but also decisions about what to build and where to build.”

• Invest in Technology and Talent Many builders still use generic tools ill-suited to the complexities of real estate marketing. Platforms like Audience Town provide real-time, scalable insights that go beyond traditional demographic data to include behavioral patterns and intent. Carey suggests builders audit their current tools and invest in technologies that can provide a “single source of truth” across teams.

Data doesn’t have to live in silos anymore,” says Carey. “When marketing, land acquisition, and product teams share the same insights, you eliminate guesswork and create a unified strategy that drives measurable results.”

• Shift from Lead Generation to Quality Engagement Generating more leads is no longer the challenge — it’s about generating the right leads. Data-driven targeting allows builders to focus on prospects who are more likely to convert, reducing marketing waste and improving ROI. This approach becomes especially critical as builders face rising SG&A expenses and tighter margins. Carey notes,

The days of simply throwing money at lead-gen are over. The builders who succeed will be those who prioritize precision — engaging the right buyers with the right message at the right time.”

The Broader Implications: A Data-Driven Future

The urgency to adopt data-powered strategies extends beyond sales and marketing. As Carey points out, insights gleaned from consumer data can inform product design, community planning, and even land acquisition strategies. For instance, understanding migration patterns and lifestyle preferences can help builders anticipate where demand will emerge, giving them a competitive edge in site selection and development.

This shift toward a more consumer-centric, data-driven business model also positions builders to navigate the potential challenges of the new administration’s policies. Whether it’s mitigating labor shortages or adapting to changes in material costs, having robust data at the core of operations will enable builders to respond with agility and confidence.

Seizing the Moment

In a market defined by hesitation and uncertainty, the ability to understand and act on consumer behavior has never been more critical. As Carey notes,

Homebuilders are in an enviable position—they can leapfrog other industries in adopting cutting-edge technologies and strategies to engage their customers. But they need to act now.”

By operationalizing structured data, homebuilders can not only weather the current storm but emerge stronger and more competitive. The tools and insights exist—it’s time for builders to harness them.