Q2 2025 SEM/PPC Benchmarks
Unlike previous years, the anticipated surge in traffic tied to the spring selling season didn’t materialize across most markets — but neither did the usual post-spring slowdown. Instead, we’ve seen a surprisingly steady landscape, with web traffic and search volume remaining consistent over the past three months.
At Do You Convert, we’ve analyzed performance data from over 90 home builders nationwide to bring you the most reliable SEM benchmarks in the industry. These benchmarks are weighted by click volume to reflect actual market behavior, not just raw averages. This ensures you’re viewing data that’s grounded in what’s happening across real campaigns, not skewed by outliers.
Before diving into the numbers, it’s important to remember that each metric is influenced by numerous variables — from your market’s competitiveness to your home pricing strategy. That’s why we’ve provided ranges rather than fixed values. Whether you’re in a high-cost metro or a less saturated secondary market, understanding the why behind your numbers is just as critical as the what.
Average CPC is starting to trend down, but is still higher than this time last year, and the range in CPC is still rather large. Many markets are still experiencing a large volume of competition, from both other builders and resale homes.
Year over year, many builders are noticing lower lead conversions across all channels, including Google Search, while traffic remains much higher. There are a number of people interested in new homes, but uncertainty in the market is leading them to hesitate to complete a lead form. While there may be adjustments to be made on your website that can improve conversion rates, it remains important to capture as many of these searchers on your website as possible. If they do not complete a lead form, you are able to use remarketing audiences to continue to tell your story. Once the uncertainty dissipates, you will find yourself in a better position to capture leads. This traffic higher in the funnel should translate to lower CPCs.
Many less competitive markets remain shielded from the increase in cost per click, which is reflected in the wide range of this benchmark, but it is important to monitor performance to ensure you proactively make adjustments to keep up with any new competition.
Over the past quarter, we have noticed a slight decrease in CTR. Click-through rates can be influenced by a number of factors, including reduced inventory, price increases, and competition. In this market, we are likely seeing lower CTRs as builders try to push for more traffic in order to counteract the lower conversion rates I mentioned earlier. To increase traffic beyond what your core campaigns can provide, you must start to add more keywords and campaigns that drive less qualified impressions with lower intent. As you push harder for traffic, it is natural to see lower CTRs. Like anything in marketing, this requires regular analysis and balance to ensure you are not just wasting your valuable budget dollars.
Remember, in Google Search, you are generally only paying when someone clicks on your ad (with some bid strategies), so a lower CTR is totally acceptable if you are generating highly engaged traffic or conversions.
Google Display CPC has maintained a consistent level on the low end of the benchmark compared to last quarter, demonstrating its stable cost-effectiveness. But we have seen the gap between the range close a bit, with the higher value dropping 15% to $0.34. Google Display continues to be an affordable way to drive high volumes or top-of-funnel traffic to your site.
CTR on display ads skyrocketed this quarter. Similar to
last year's fourth quarter, many builders were running display ads focused on some sort of promotion over the past quarter. This, paired with a remarketing audience, generally results in a great click-through rate on your ads.
I’ve also seen a lot of builders pull back on display budgets to keep up with increased competition in Google Search. This usually leads to the best ads remaining active and a need to be very intentional with messaging.
Meta Ads CPC had remained relatively stable compared to
last quarter. We started Q1 with higher CPCs after the Holidays, but we quickly settled right around this range. I am starting to see signs that CPC may increase a bit for Q3, but we generally see big fluctuations in a big shopping season
(can you believe it’s Back to School time already?). Unlike in Google Search, we compete against a wide range of retailers for impressions on Meta.
CTRs have more than recovered after a slight 2% dip last quarter. As builders tackle lower conversion rates, they're getting more intentional with their messaging on ads. We are also seeing more builders take advantage of the remarketing capabilities in Meta, which generally results in higher CTRs. Similar to the past couple of quarters, messaging around inventory homes is performing exceptionally well.
As we wrap up Q2, the key takeaway is this: while click costs and click-through rates continue to fluctuate based on the market, buyer uncertainty, and advertising strategies, the digital landscape has remained impressively stable. That consistency provides a valuable opportunity for builders to test, refine, and optimize their marketing efforts without having to react to extreme shifts in performance.
Looking ahead, it’s clear that strategic balance will be essential. The temptation to chase efficiency at the expense of visibility, or vice versa, must be weighed against each builder’s unique goals and conditions. With thoughtful messaging, smart remarketing, and ongoing analysis, builders can continue to adapt their paid media strategies for sustainable success.
Stay tuned. We’ll be watching closely to see how Q3 unfolds and what trends emerge as buyer behavior and economic conditions evolve.
