We’ve talked about it with many clients, and we know you’re likely experiencing it, too. The construction and remodeling industries are facing one of their slowest years in terms of lead generation since the 2020 pandemic surge. Many home builders and remodelers who saw unprecedented demand during the pandemic now navigate a much more challenging landscape in 2024. As inflation rises, interest rates remain high, and consumer confidence wanes, the once-booming home improvement sector has slowed.
But why has lead generation stalled in 2024, and more importantly, what can businesses do to adapt? Builder Funnel works solely with builders and remodelers in North America, allowing us to aggregate information and trends that underpin the slowdown. Today, we’ll outline the changing market dynamics and offer actionable strategies for construction professionals to not only survive but thrive during these slower times. Here’s how you can adjust your marketing and lead generation efforts to stay competitive, given the current economic climate and evolving consumer behavior.
Let's talk about the baseline before we discuss what made 2024 a bit different. This is important to acknowledge, especially as we head into one of the historic dips in yearly leads. Seasonality naturally affects this industry. There are predictable ebbs and flows in demand based on the time of year.
While most home builders and remodelers are well aware of these seasonal shifts, they often don't adjust their marketing efforts accordingly. The strategy tends to stay the same, leading to missed opportunities during the slower months or critical build-up periods. Doing nothing during tough times—whether it's due to a slow economy or seasonal downtime—can leave you vulnerable, with fewer leads and less work to keep your crews busy.
We'll finish this article with more in-depth discussion of adjustments you can make when you need to fill your pipeline. The goal is to stay aggressive and adaptable during these slower periods rather than sitting back and accepting lower demand. By increasing your visibility, offering compelling incentives, and getting creative with your marketing, you can still drive leads—even when the industry as a whole is quieter. Here are a few proactive and creative ideas to adjust your marketing during predictable slow seasons.
2024 has brought a noticeable decline in leads for construction and remodeling projects, creating a sharp contrast with the post-pandemic boom. During 2020-2022, the construction industry saw a massive surge in demand as homeowners sought to improve their living spaces due to pandemic lockdowns, remote work, and general lifestyle shifts. However, the lead generation momentum has decelerated significantly in 2024 due to various economic and market factors.
One of the primary reasons for this slowdown is the broader economic impact on the construction industry. The rise in inflation and higher interest rates have directly affected homeowners' spending power and willingness to invest in large-scale remodels. Though they’re no longer soaring, the costs of building materials have remained high, putting additional strain on contractors and homeowners. This has led many potential clients to put off renovations, prioritizing essential projects over more discretionary home improvements, even when a decrease in material prices would indicate catastrophic market conditions, and a more steady increase is the healthiest and most realistic hope.
Construction leads in 2024 have dropped not because of market collapse but due to a natural market correction following the extraordinary demand of the pandemic years. Although spending is slightly down—1.2% in Q1 and 3% in Q2 of 2024—the downturn will likely be short-lived, with a rebound forecasted for early 2025. This means businesses still have ample opportunity to generate leads, but it requires strategic adaptation to the current conditions.
Maintaining a strong financial position during market uncertainty can be the difference between weathering the storm and struggling to stay afloat. Instead of cutting back across the board, making strategic spending adjustments is crucial.
Of course, you’ll need to monitor your cash flow closely. Tough decisions may be necessary to preserve cash. That said, one area where spending should not be cut is marketing. In fact, doubling down on marketing efforts during slow periods has historically proven to be one of the most effective ways to emerge stronger when the market rebounds. During the COVID-19 pandemic, businesses that kept investing in their visibility—whether through content marketing, paid ads, or other outreach efforts—saw significant gains when the economy picked back up.
In the current market, where leads are harder to come by, ensuring your brand stays visible is more important than ever. Optimize your website for conversions, invest in high-quality content, and run targeted ads to capture leads still out there. It’s tempting to cut marketing to save costs, but maintaining your presence now will put you in a prime position to capture leads when the market rebounds, which is expected in 2025.
Even when leads aren’t ready to buy immediately, forgetting about them is a mistake. In fact, nurturing leads in the research or consideration phase is one of the most important strategies you can implement in a slow market. With fewer homeowners prepared to pull the trigger on major renovations, focusing on education and building trust becomes the name of the long game.
Leads not ready to buy now are often dismissed as "junk," but this is a huge missed opportunity. Many of these homeowners will be looking to move forward in 3-12 months, and the companies that stay top-of-mind during that time are the ones they’ll turn to when they’re ready to make a decision. This is where nurturing comes into play.
We use a lead matrix to understand where your leads are in the buying process and how to approach them best. For example, "warm leads ready to buy later" are often referrals who are still saving or researching. They may be months away from making a final decision, but by staying in touch—whether through regular follow-ups, newsletters, or sending them educational content—you build a relationship that will convert to a sale when they’ve decided to buy.
Similarly, "cold leads ready to buy later" often get dismissed as low-priority, but they represent a significant long-term opportunity. Rather than ignoring them, set up automated systems to nurture these leads. Send them relevant blog posts, invite them to webinars, and keep them informed about trends or new projects you're working on. Even though they aren’t always going to buy now, they’re much more likely to choose you when the time comes if you've stayed engaged and provided value throughout their decision-making process.
When lead volume drops, it's time to make the most of the leads you already have. One of the quickest and most cost-effective ways to generate new opportunities is through personal outreach to your existing network. This could be past clients, referral partners, or prospects who haven’t been in touch for a while.
Start by sending personalized emails texts, or even making phone calls to reconnect with past clients. Let them know you have project availability, ask if they need any updates or renovations, or see if they can refer anyone needing your services. This is a low-cost, high-impact way to tap into people who already know and trust your work. The goal is to re-engage warm contacts, reminding them you’re available and ready to help.
You can also take this outreach further by actively asking for referrals. People who had a good experience working with you in the past are often willing to recommend you to their friends, family, or neighbors—they just need a little nudge. Personalizing your outreach for each contact, mentioning specific past projects, and showing genuine interest in their needs can go a long way in creating new opportunities.
Consider leveraging referral incentives. Offering a small reward—whether that’s a gift card, a discount on their next project, or a referral fee—can motivate your past clients and partners to send new business your way.
Expand your lead base by partnering with other business professionals who cater to the same target audience. Think of professionals like architects, real estate agents, interior designers, and even high-end local businesses that serve affluent homeowners.
By collaborating with these professionals, you can tap into what we call Other People’s Audiences (OPA)—their clients, customers, and followers who may also be in the market for remodeling or construction services. For instance, offering a discount or bonus to clients referred by a real estate agent or providing special promotions through local design firms allows you to reach new potential clients without heavy marketing costs.
This type of partnership can take many forms. You might offer joint promotions, co-host events, or even collaborate on content, such as webinars or blog posts highlighting your expertise. One successful example is distributing a compelling coupon through these partners—a coupon for a discount on remodeling services or a bonus upgrade can help draw in leads who are already thinking about home improvements.
The goal is to build mutually beneficial relationships where you and your partners gain exposure to new audiences. This strategy doesn’t require massive marketing budgets, but it does require intentional networking and creating win-win scenarios. In a slow market, these collaborations can keep your lead pipeline active, even when organic leads are down.
When leads are scarce, staying visible to the right audience becomes more crucial than ever. Paid advertising offers one of the best ways to keep your business top-of-mind, especially for those who are actively considering a remodeling project but haven’t yet committed. This is where platforms like Google and Meta (Facebook and Instagram) shine, allowing you to target high-intent audiences precisely.
Google Ads are particularly effective for capturing leads with a clear intent to hire. By focusing on "bottom-of-the-funnel" keywords—terms that indicate a prospect is ready to take action, such as "remodeling contractor in [city]"—you can attract leads who are already searching for services like yours. The key is to focus your ad spend on intent-based keywords, ensuring you’re only paying to reach people who are already motivated to find a contractor or remodeler.
The strategy is a little different on Meta platforms like Facebook and Instagram. Instead of capturing people ready to buy now, you’re building brand awareness and staying in front of potential leads through engaging, targeted ads. These platforms are perfect for retargeting people who have visited your website or interacted with your brand before but didn’t convert. By showing them relevant, value-driven content—such as before-and-after photos, testimonials, or informative videos—you keep your brand top-of-mind until they’re ready to decide.
For example, let’s say a potential client visited your website to explore your project portfolio but didn’t fill out a contact form. By setting up retargeting ads on Facebook and Instagram, you can remind them of your services while they scroll through their feeds, increasing the likelihood that they’ll return and take action. It’s about staying visible during the decision-making process.
Retargeting ads are particularly powerful when combined with content marketing strategies. You can drive traffic to blog posts, or project showcases that educate and inspire potential clients, helping you build trust over time. Once they’re ready to move forward with their remodeling project, your business will be the one they think of.
Every dollar spent on marketing in a slower market needs to work harder. Optimize your paid ad campaigns for the best return on investment (ROI). This means continually refining your ads and keywords and targeting to reach the right people at the right time.
One of the biggest mistakes we see businesses make during slow periods is cutting their ad budgets. While it’s understandable to want to reduce expenses, cutting back on marketing—especially paid ads—can do more harm than good. Instead, reallocate your budget to the most effective platforms and campaigns. For example, if you’re seeing better lead generation from Google Ads than Meta Ads, focus more resources on Google while maintaining social media visibility.
Make sure your ad is compelling and speaks directly to the needs of your target audience. Strong, attention-grabbing headlines and high-quality visuals (like project photos or video walkthroughs) can significantly boost engagement. You also want to optimize your landing pages for conversions. That means they should be visually appealing, easy to navigate, and include clear calls-to-action that guide visitors to the next step, whether filling out a contact form or scheduling a consultation.
Tracking and analyzing your ad performance is essential. Use tools like Google Analytics and Facebook’s Ad Manager to measure the effectiveness of your campaigns. Which ads are driving the most traffic? Which keywords are converting at the highest rate? Regularly reviewing these metrics allows you to adjust your strategy to focus on the tactics that deliver the best results.
When the market slows, many companies pull back on their content creation efforts, but this is when doubling down on content marketing and SEO can set you apart. Investing in valuable, educational content that answers the questions your potential clients are asking right now builds trust. It keeps your business visible in search results for months and even years to come.
Think of your website as your 24/7 sales rep. It should convert visitors into leads by providing all the information they need, easy navigation, and clear calls to action. Content marketing goes beyond simple blog posts in the remodeling and construction industries. You should be creating in-depth guides, project showcases, and case studies that highlight not only your expertise but also the results you deliver. For example, consider producing content that explains the costs, timelines, and challenges of different remodeling projects. Homeowners researching their next project may not be ready to hire immediately, but by providing helpful, transparent information, you position your business as the go-to source when it’s time to move forward.
SEO (Search Engine Optimization) ensures that the right people find your content. Optimizing your website and blog posts for relevant, high-traffic keywords can drive a steady stream of organic traffic to your site. This strategy doesn’t provide immediate results, but it’s a long-term play that pays off by establishing your site’s authority and bringing in leads consistently over time.
Even if you’re getting traffic from content marketing or paid ads, none of it matters if your website isn’t optimized to convert visitors into leads. This is especially important during a lead slowdown when every visitor counts.
Start by reviewing your website through the eyes of a potential client. Is it easy to find the information they’re looking for? Are the pages loading quickly? Are there clear, compelling calls to action on every page? Your site should guide visitors seamlessly from one stage to the next, whether they’re just browsing your portfolio or looking to schedule a consultation.
Including high-quality project photos, customer testimonials, and trust signals like awards or certifications can go a long way in building credibility with visitors. Case studies and before-and-after galleries give prospective clients a deeper understanding of the kind of work you do and the results they can expect. Make sure to highlight your best work and offer clear, prominent contact forms for visitors to get in touch with you.
Consider adding lead magnets like downloadable guides, cost calculators, or renovation checklists that capture email addresses and so that you can nurture these visitors through email marketing as we have discussed above.
The lead slowdown in 2024 has been a wake-up call for many in the construction and remodeling industries, but it also presents a significant opportunity. By understanding the economic and consumer behavior changes that have led to this downturn, you can adapt your marketing and lead generation strategies to better align with current conditions.
The key is to stay proactive: maintain your marketing efforts, continue nurturing leads, and explore new avenues for generating business. With the right strategies, you can still find success even in a slower market. And when the market does rebound, you’ll have built a strong pipeline of leads that are ready to convert, ensuring your business thrives in the years to come.
Now is the time to take action, double down on your marketing, and make sure your business is ready to capture those future leads. Read for an expert partner to show you what this looks like for your home-building or remodeling business? Schedule a meeting with us to discuss the possibilities.
Contact us today to discuss our expert management and optimization services to ensure your campaigns bring you the qualified leads you need. Let's work together to ensure your construction business thrives!