Personalization in Homebuilding: Leveraging AI to Sell More Homes

At the recent Accelerate 2025 event, titled "Homebuilding in the Digital World," David Edelman, an Executive Fellow at Harvard Business School and co-author of the book Personalized: Customer Strategy in the Age of AI, spoke about the role of personalization in driving growth in the homebuilding industry. Edelman highlighted how homebuilders can utilize data and artificial intelligence to create tailored customer experiences to enhance customer engagement and increase sales in a competitive market. 

Harnessing Data and AI for Personalization

Edelman explained how data and AI play a crucial role in personalizing the customer journey. He suggested ways homebuilders can leverage these tools to better understand and anticipate buyer preferences. This includes determining which features buyers value most by tracking their interactions on websites.

For instance, if a buyer is browsing homes with energy-efficient features, AI can trigger the delivery of tailored content, such as blog posts or virtual tours, that highlight those specific features. AI can also help predict when a buyer is likely to make a decision. By analyzing past behavior, homebuilders can send personalized messages or offers at the optimal time, thereby increasing the likelihood of conversion. 

Personalized Content and Messaging

Edelman emphasized the significance of creating content that directly addresses the needs of buyers. For homebuilders, this may involve showcasing homes and providing relevant, timely content that answers specific questions from potential buyers. 

For example, homebuilders could personalize the website experience based on the interests of each visitor. A first-time buyer might see helpful guides on the buying process, while someone interested in luxury homes could find content that highlights high-end features. CRM data can be used to send highly targeted emails that include property recommendations, special offers, or financing tips, all tailored to meet the specific needs of each buyer. 

Tailored Offers and Incentives

Personalized offers significantly enhance customer engagement. Homebuilders could adopt this strategy by tailoring financing options and promotions to individual buyers. For instance, first-time homebuyers could receive information about down payment assistance programs, while move-up buyers might be offered upgrades or special pricing on larger homes. Additionally, providing personalized design options, such as discounts on flooring or countertops that match a buyer's preferences, can create more attractive offers and increase conversion rates. 

Choosing Partners That Prioritize Personalization

To deliver a truly personalized experience, homebuilders could also consider partnering with companies that emphasize customization and data-driven insights. One example is Hippo. We embed insurance directly into the homebuying process and offer policies specifically designed for new construction.

Unlike traditional home insurance providers, which typically underwrite policies based on the buyer's personal information, Hippo obtains each home's plans and specifications directly from the builder. This allows Hippo to provide tailored coverage based on the home’s features, rather than relying solely on the buyer's credit and claims history.   

By underwriting based on the home’s unique attributes—such as design, materials, and community safety features—Hippo can provide more accurate and relevant coverage. This approach ensures that homeowners only pay for the coverage they need, potentially saving them up to 25% on their annual insurance premium.* 

Conclusion

Partnering with companies like Hippo allows homebuilders to improve the customer experience and provide real value by streamlining processes and offering personalized, cost-effective solutions.  

If you are interested in learning more about how Hippo can support your homebuyers, please contact us today to explore the available options.

_{Hippo Analytics Inc. d/b/a Hippo Insurance Services (CA Lic. No. 0K96532) (“Hippo”) is a general agent for affiliated and non-affiliated insurance companies. *Savings is the estimated average based upon a comparison of HO-3 policies and HO-5 policies issued by 10 different carriers in 20 states specifically for new construction homes between Q4 2022 and Q4 in 2023. Individual savings may vary and are not guaranteed.}