Advertising Apartments on Google Ads Got More Expensive

If your Google Ads campaigns seem pricier than before, you're not imagining it. Average cost per click (CPC) has climbed significantly across industries, and real estate is among the sectors facing the steepest digital advertising inflation.

Let’s explore what’s driving these increases, why it matters for multifamily marketing and property owners, and how to keep your cost per conversion lower than the industry average.

Real Estate: A Closer Look

CPCs in the real estate sector have jumped by 35% year over year. Although still lower than industries like dental or insurance, the average real estate CPC has reached $2.10, reflecting growing competition and reduced efficiency per dollar spent.

However, the cost per lead (CPL) in real estate has also escalated, averaging $87.36, which is higher than many other industries. This suggests that while clicks may be less expensive, converting those clicks into leads is becoming more costly.

Unfortunately, Google doesn’t split out multifamily from other real estate asset types in its industry reports, but our data confirms some of what’s reported.  Our average cost per click for search campaigns was $2.65 in April 2025. This is in part because we are using strategies to maximize conversions rather than being willing to pay a higher cost per click as a result. This strategy is a best practice and has worked very well for us. We’ve been able to keep our average cost per conversion across all of our search campaigns at $27.59.*

Strategies to Reduce Your CPC and Cost Per Lead

To help reduce ad costs and improve campaign efficiency, consider the following strategies:

1. Refine Your Keyword Strategy: Focus on high-intent keywords that are more likely to convert and less competitive.
2. Use Negative Keywords Extensively: Regularly update your negative keyword list to prevent your ads from showing on irrelevant searches, thereby reducing wasted spend.
3. Enhance Quality Score: Google's Quality Score significantly influences your CPC. Improving ad relevance, click-through rates, and your landing page experience can lead to a higher Quality Score and lower your costs.
4. Optimize Landing Pages: Speaking of landing pages, make sure that they are relevant, load quickly, and make it easy for prospects to schedule a tour or get in touch with you.
5. Geo-Targeting: Show your ads in specific geographic locations where previous renters have come from. This will give you a competitive advantage and a higher conversion rate.
6. Use Ad Scheduling: See when your conversions are coming in and consider only showing your ads during office hours if you don’t have chatbots or call centers that can help your prospects after hours.
7. Consider Performance Max or Display Ads. Our average Cost Per Click was $.46 in April 2025 for display ads. Google’s AI can very effectively target people searching for an apartment near your communities. Some of our clients have converted all of the budget into Performance Max campaigns, which in most cases will outperform search campaigns by 100-300%, depending on the market.

While the cost of Google Ads is on the rise, particularly in the real estate industry, there are effective strategies to manage and even reduce your CPC. By focusing on keyword optimization, improving Quality Scores, enhancing user experience, and taking advantage of lower-cost display ads, advertisers can navigate the increasing costs and maintain a healthy return on investment.

Want to get more from your Google Ads budget? Let’s connect to explore options tailored to your portfolio.

*Some of our clients have us track things I wouldn’t consider leads, so the cost per lead is a little higher.