Home buyer lead costs on Google Ads declined year-over-year in Q4 2023 for CINC's portfolio of real estate clients.
In another bullish sign for the housing marketing for 2024, this was the first year-over-year decline since the peak of the pandemic.
The results were particularly strong for CINC clients compared to other peers in the real estate market also advertising on Google.
Recent research from Wordstream, shows that across all industries, Google leads costs were up 20% in 2023. When looking at just the real estate industry, Google lead costs were up 46%.
By contrast, CINC clients overall saw a slight drop in home buyer lead costs year-over-year on Google with roughly half of markets seeing year-over-year declines.
Although this report focuses on US results, both US and Canada had improved results this quarter. Canada's decrease of 6% was particularly healthy.
Drilling down to cities - the top three large markets with the lowest were again St. Louis, Houston, and Chicago. This is the 5th consecutive quarter those cities were on top. Looking at the smaller cities, the top 4 now feature Salinas, CA; Bangor, ME; Hot Springs, AR and Salina, CA.
The cost per lead should improve in the 1st quarter from the 4th quarter because the 4th quarter typically has the highest CPL of the year. The buyer CPL is also closely correlated with home sales, so as home sales improve as NAR is predicting as 2024 progresses, the CPL should decline even further.
CINC is the leader in online real estate lead generation with more than 50,000 clients. This behind-the-scenes lead cost data is what we were seeing for our portfolio of real estate team and agent clients during Q4 2023. The CINC client marketing team manages almost $30 million in search and social advertising spend annually for real estate teams and agents across the United States and Canada. If you want to see how CINC can help you find more higher quality hyperlocal real estate leads on Google, request a demo here.
California markets San Francisco (ranked #1) and San Diego (ranked #3) saw the 3 of the largest buyer cost per lead declines year-over-year for the largest markets in Q4 2023.
San Francisco's Old Coast Guard Station and Golden Gate Bridge.
Other West Coast markets in Seattle, Washington (ranked #2) and Portland, Oregon (ranked #6) were also well-represented in the Top 7.
| Market Rank | Market | Q4 2023 Cost Per Lead (CPL) | % Change Year-Over-year |
| 1 | San Francisco-Oakland-Hayward, CA | $ 11.22 | -14.0% |
| 2 | Seattle-Tacoma-Bellevue, WA | $ 10.80 | -9.0% |
| 3 | San Diego-Carlsbad, CA | $ 9.29 | -9.0% |
| 4 | Detroit-Warren-Dearborn, MI | $ 6.67 | -7.0% |
| 5 | Dallas-Fort Worth-Arlington, TX | $ 7.00 | -6.0% |
| 6 | Portland-Vancouver-Hillsboro, OR-WA | $ 8.66 | -6.0% |
| 7 | Washington-Arlington-Alexandria, DC-VA-MD-WV | $ 8.19 | -2.0% |
Des Moines, Iowa (45% lead cost decline) saw the largest overall real estate buyer lead cost decline year-over-year.
The East Village in Des Moines, Iowa, a neighborhood west of the Iowa State Capitol.
2 of the top 6 markets that saw the largest year-over-year decreases in lead cost in Q4 2023 were nearby Indianapolis, Indiana and Louisville, Kentucky, separated by just 3 hours on I-65.
| Market Rank | Market | Q4 2023 Cost Per Lead (CPL) | % Change Year-Over-year |
| 1 | Des Moines-West Des Moines, IA | $ 5.58 | -45% |
| 2 | Boise City, ID | $ 7.91 | -32% |
| 3 | Worcester, MA-CT | $ 4.57 | -29% |
| 4 | Louisville/Jefferson County, KY-IN | $ 4.71 | -28% |
| 5 | Greensboro-High Point, NC | $ 4.04 | -26% |
| 6 | Indianapolis-Carmel-Anderson, IN | $ 4.77 | -18% |
| 7 | New Orleans-Metairie, LA | $ 2.91 | -18% |
| 8 | Provo-Orem, UT | $ 10.71 | -16% |
| 9 | Deltona-Daytona Beach-Ormond Beach, FL | $ 7.20 | -15% |
| 10 | San Francisco-Oakland-Hayward, CA | $ 11.22 | -14% |
New Orleans, Louisiana, had the lowest real estate buyer lead cost of any market. New Orleans had a very low $2.91 cost per lead.
New Orleans' Cathedral-Basilica of St. Louis, King of France.
4 of the Top 10 lowest real estate lead cost markets were located in New York: Rochester (ranked #2), Syracuse, (ranked #7), Buffalo (#8), and Albany (#9).
| Market Rank | Market | Q4 2023 Cost Per Lead (CPL) |
| 1 | New Orleans-Metairie, LA | $ 2.91 |
| 2 | Rochester, NY | $ 3.29 |
| 3 | Youngstown-Warren-Boardman, OH-PA | $ 3.58 |
| 4 | Jackson, MS | $ 3.98 |
| 5 | El Paso, TX | $ 4.00 |
| 6 | Greensboro-High Point, NC | $ 4.04 |
| 7 | Syracuse, NY | $ 4.05 |
| 8 | Buffalo-Cheektowaga-Niagara Falls, NY | $ 4.23 |
| 9 | Albany-Schenectady-Troy, NY | $ 4.27 |
| 10 | Memphis, TN-MS-AR | $ 4.46 |
|
Rank |
Market |
Q4 2023 Cost Per Lead (CPL) | % Change Year-Over-Year |
|
1 |
New York-Newark-Jersey City, NY-NJ-PA |
$7.64 | 2% |
|
2 |
$10.24 | 6% | |
|
3 |
Chicago-Naperville-Elgin, IL-IN-WI |
$5.99 | 20% |
|
4 |
Dallas-Fort Worth-Arlington, TX |
$7.00 | -6% |
|
5 |
Houston-The Woodlands-Sugar Land, TX |
$5.95 | 7% |
|
6 |
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD |
$6.09 | 1% |
|
7 |
Washington-Arlington-Alexandria, DC-VA-MD-WV |
$8.19 | -2% |
|
8 |
$8.18 | 11% | |
|
9 |
Atlanta-Sandy Springs-Roswell, GA |
$6.38 | 5% |
|
10 |
Boston-Cambridge-Newton, MA-NH |
$7.13 | 13% |
|
11 |
$11.22 | -14% | |
|
12 |
$9.10 | 5% | |
|
13 |
Phoenix-Mesa-Scottsdale, AZ |
$10.27 | 4% |
|
14 |
Detroit-Warren-Dearborn, MI |
$6.67 | -7% |
|
15 |
Seattle-Tacoma-Bellevue, WA |
$10.80 | -9% |
|
16 |
Minneapolis-St. Paul-Bloomington, MN-WI |
$9.19 | 9% |
|
17 |
$9.29 | -9% | |
|
18 |
$7.05 | 2% | |
|
19 |
St. Louis, MO-IL |
$5.35 | 11% |
|
20 |
Baltimore-Columbia-Towson, MD |
$6.63 | 2% |
|
21 |
Denver-Aurora-Lakewood, CO |
$11.00 | 11% |
|
22 |
Pittsburgh, PA |
$5.57 | 2% |
|
23 |
Charlotte-Concord-Gastonia, NC-SC |
$6.69 | 7% |
|
24 |
Portland-Vancouver-Hillsboro, OR-WA |
$8.66 | -6% |
|
25 |
San Antonio-New Braunfels, TX |
$7.18 | 56% |
|
26 |
$6.31 | -5% | |
|
27 |
$8.71 | -14% | |
|
28 |
Cincinnati, OH-KY-IN |
$5.99 | 11% |
|
29 |
Cleveland-Elyria, OH |
$6.40 | -13% |
|
30 |
Kansas City, MO-KS |
$5.86 | -6% |
|
31 |
Las Vegas-Henderson-Paradise, NV |
$10.20 | 3% |
|
32 |
Columbus, OH |
$6.72 | 40% |
|
33 |
Indianapolis-Carmel-Anderson, IN |
$4.77 | -18% |
|
34 |
$11.23 | -5% | |
|
35 |
Austin-Round Rock, TX |
$9.26 | 6% |
|
36 |
Nashville-Davidson--Murfreesboro--Franklin, TN |
$8.10 | 0% |
|
37 |
Virginia Beach-Norfolk-Newport News, VA-NC |
$8.18 | -5% |
|
38 |
Providence-Warwick, RI-MA |
$6.25 | -8% |
|
39 |
Milwaukee-Waukesha-West Allis, WI |
$5.73 | 8% |
|
40 |
$7.03 | 0% | |
|
41 |
Memphis, TN-MS-AR |
$4.46 | -14% |
|
42 |
Oklahoma City, OK |
$6.62 | 19% |
|
43 |
Louisville/Jefferson County, KY-IN |
$4.71 | -28% |
|
44 |
Richmond, VA |
$6.89 | 8% |
|
45 |
New Orleans-Metairie, LA |
$2.91 | -18% |
|
46 |
Hartford-West Hartford-East Hartford, CT |
$5.76 | 16% |
|
47 |
Raleigh, NC |
$8.12 | 10% |
|
48 |
Birmingham-Hoover, AL |
$5.00 | 3% |
|
49 |
Buffalo-Cheektowaga-Niagara Falls, NY |
$4.23 | 15% |
|
50 |
Salt Lake City, UT |
$10.21 | -13% |
|
Rank |
Market |
Q4 2023 Cost Per Lead (CPL) | % Change Year-Over-Year |
|
51 |
Rochester, NY |
$3.29 | -10% |
|
52 |
Grand Rapids-Wyoming, MI |
$7.81 | 2% |
|
53 |
Tucson, AZ |
$9.68 | 0% |
|
54 |
Urban Honolulu, HI |
$6.04 | -7% |
|
55 |
Tulsa, OK |
$4.82 | 19% |
|
56 |
$5.29 | -7% | |
|
57 |
Bridgeport-Stamford-Norwalk, CT |
$7.67 | 14% |
|
58 |
Worcester, MA-CT |
$4.57 | -29% |
|
59 |
Albuquerque, NM |
$7.62 | -13% |
|
60 |
Omaha-Council Bluffs, NE-IA |
$4.49 | 7% |
|
61 |
Albany-Schenectady-Troy, NY |
$4.27 | 13% |
|
62 |
New Haven-Milford, CT |
$7.47 | 39% |
|
63 |
$7.24 | 5% | |
|
64 |
Knoxville, TN |
$6.37 | 10% |
|
65 |
Greenville-Anderson-Mauldin, SC |
$5.01 | -6% |
|
66 |
$6.88 | -6% | |
|
67 |
El Paso, TX |
$4.00 | NA |
|
68 |
Allentown-Bethlehem-Easton, PA-NJ |
NA | NA |
|
69 |
Baton Rouge, LA |
$5.34 | 47% |
|
70 |
McAllen-Edinburg-Mission, TX |
NA | NA |
|
71 |
Dayton, OH |
$6.59 | 25% |
|
72 |
Columbia, SC |
$4.49 | -4% |
|
73 |
Greensboro-High Point, NC |
$4.04 | -26% |
|
74 |
$9.45 | 9% | |
|
75 |
Little Rock-North Little Rock-Conway, AR |
NA | NA |
|
76 |
$9.52 | -2% | |
|
77 |
Akron, OH |
$7.36 | -2% |
|
78 |
Charleston-North Charleston, SC |
$11.03 | -2% |
|
79 |
Colorado Springs, CO |
$9.50 | -12% |
|
80 |
Syracuse, NY |
$4.05 | -3% |
|
81 |
Winston-Salem, NC |
$4.48 | 0% |
|
82 |
$8.97 | 32% | |
|
83 |
Boise City, ID |
$7.91 | -32% |
|
84 |
Wichita, KS |
$5.05 | 55% |
|
85 |
Springfield, MA |
NA | NA |
|
86 |
Madison, WI |
$6.65 | 12% |
|
87 |
$5.21 | 10% | |
|
88 |
Ogden-Clearfield, UT |
$8.82 | 5% |
|
89 |
Toledo, OH |
NA | NA |
|
90 |
$7.20 | -15% | |
|
91 |
Des Moines-West Des Moines, IA |
$5.58 | -45% |
|
92 |
Jackson, MS |
$3.98 | -9% |
|
93 |
Augusta-Richmond County, GA-SC |
$4.52 | -6% |
|
94 |
Scranton–Wilkes-Barre–Hazleton, PA |
NA | NA |
|
95 |
Youngstown-Warren-Boardman, OH-PA |
$3.58 | NA |
|
96 |
Harrisburg-Carlisle, PA |
$6.36 | -14% |
|
97 |
Provo-Orem, UT |
$10.71 | -16% |
|
98 |
$7.17 | 6% | |
|
99 |
Chattanooga, TN-GA |
$5.76 | 10% |
|
100 |
Spokane-Spokane Valley, WA |
$12.60 | NA |
Additional Google Real Estate Lead Gen Resources from CINC:
With the real estate market shifting, it is more important than ever to be more efficient paying for leads on Google. Try our free local Google real estate targeting tool here to find hidden pockets of more cost effective hyper-local leads near you.
Watch our recent on-demand real estate lead gen webinar here where we discuss new trends for real estate teams and agents on Google Ads, including a deep dive on Google Local Service Ads (LSA's) for realtors.
Here are links to past historic Buyer Cost Per Lead Reports for Q3 2023, Q2 2023, Q1 2023, Q4 2022, Q3 2022, Q2 2022, Q1 2022, Q4 2021, Q3 2021, Q2 2021, Q1 2021, Q4 2020, Q3 2020, Q2 2020, Q1 2020.