Acquisition costs are rising. Your returns don’t have to fall.
Modernize and HomeBuddy analyzed industry trends alongside data from our own home services advertising programs to understand where costs are rising, how advertisers are performing through these changes, and what it means for acquisition strategy in 2026.
Watch our webinar for a deeper look at what rising acquisition costs mean for your budget, lead volume, and channel strategy.
THE PRESSURE
Three numbers defining the cost of growth in 2026
The good news: rising acquisition costs don’t automatically mean lower marketing efficiency. Our data shows some advertisers are holding performance even as lead costs increase.
~4.0%
U.S. media inflation forecast for 2026
+10.5%
Home services paid search CPL, YoY
+29.5%
Windows paid search CPL, YOY
INSIDE THE 2026 OUTLOOK
What is changing in customer acquisition?
The report is designed to make the changing economics of home services growth easier to read: where costs are moving, where efficiency is being lost, and which operating choices matter most.
01
The average doesn’t tell the whole story
Home services CPL trends vary widely by category, from a 29.5% increase in Windows to declining costs in HVAC. Your actual cost pressure depends on the business you are in.
02
Geography changes the picture again
For example, Boston shows significant cost pressure across most trades, while Atlanta and New York show sharp differences within the same market. Windows costs are rising substantially, while HVAC is relatively flat or declining.
Category benchmarks are a starting point, not a plan.
03
Higher costs don’t automatically mean lower efficiency
Across selected large home services advertisers, Cost of Marketing remained broadly stable despite rising media costs. The data shows that acquisition cost is only one part of the performance equation.
THE PLAYBOOK
Four priorities for a changing acquisition market
Align budgets with actual cost pressure
Plan around the trends in your own category and geography, not a blended market average.
Protect efficiency, not just volume
Improve conversion, follow-up, and close rates. Manage performance against revenue and ROI, not CPL alone.
Build a more diversified demand mix
Reduce reliance on the most competitive inventory by building demand across channels and stages of the homeowner journey.
Treat project value as an acquisition lever
As a result, higher project value can help offset rising acquisition costs and protect marketing efficiency.
THE FULL REPORT
Get the complete 2026 Outlook
Explore the category- and market-level data, efficiency analysis, and recommendations for adapting your customer acquisition strategy.
“Success isn’t about outspending the market, it’s about outsmarting it. That’s what this report is here to help with.”
Jeff Barnes
CEO, Modernize