The cost per lead of seller leads increased during the 2nd quarter of 2021, driven by a jump in demand because of low home inventory.
The change in CPL varied sharply by market (full report here). Some markets were down or relatively unchanged, while others saw big spikes in CPL. Of the top 20 markets in the CINC Seller CPL Market Report, 16 had higher lead prices in 2021 rather than 2020.
California markets saw large jumps in CPL. Los Angeles, San Francisco, Riverside, and San Diego all had year-over-year increases surpassing 50 percent. However, the market with the largest increase was the very competitive Tampa market, which increased a significant 285% year over year to $30 a lead.
On the other hand, cities such as Philadelphia, Boston, and Detroit improved year over year. New York, Washington, and Chicago were pretty steady.
CINC is the leader in online real estate lead generation with more than 3,000 clients. The CINC client marketing team manages almost $30 million in search and social advertising spend annually.
Even at these slightly higher CPL levels, seller leads are the best advertising choice to get new listings in a time when home inventory is low.
Because of that, we anticipate that lead costs will continue to be at the current levels throughout the rest of the year, or may even edge upward.