New Report Reveals Real Estate Marketing Channels Generate No Leads for Most Agents

The State of Real Estate Marketing in 2026

A new report from Knwn Local has brought to light some concerning statistics for real estate professionals. In a survey conducted among 462 agents, it was found that thirteen out of the twenty-one marketing channels commonly utilized deliver no leads to over seventy percent of agents. This significant finding is part of the 2026 State of Real Estate Marketing Report, which explores how agents plan to use AI, create content, and budget their marketing efforts.

Key Findings

According to the report, a staggering 82% of agents indicated they were unable to generate any leads from various paid digital avenues, with TikTok showing that 94% of agents gained nothing from it. Other channels such as LinkedIn and YouTube also performed poorly, with zero leads for 86% and 84% of agents, respectively. The report challenges the long-standing belief that successful lead generation relies on merely spending enough on paid channels. Chris Smith, co-founder of Knwn Local, emphasized this point, stating that for most agents on most channels, the lead number is quite simply zero.

Interestingly, the results have overturned the prevailing narrative surrounding major real estate portals like Zillow. Free users of Zillow rated their leads poorly, while those who opted to pay rated their experiences significantly better—31% of paying users rated their leads as good or excellent, compared to just 3% of the free users. The same pattern emerged with direct mail, indicating a clear divide in effectiveness based on whether an agent invested financially in the service.

The Rise of AI in Real Estate

Despite the disappointing statistics in lead generation, the report uncovered that 63% of agents now use AI on a daily basis, with many reporting saves of up to six hours a week. Most tasks performed using AI are text-based, showcasing the increasing reliance on technology for efficiency. Furthermore, agents who consistently create content—those writing four or more posts per month over a span of four years—reported securing deals at nine times the rate of agents not engaging in regular content creation.

Budgeting Trends for 2026

One of the significant discussions in the report relates to the upcoming marketing budgets for 2026. The current trend indicates a pivot towards investing in AI, YouTube, short-form videos, and email marketing, as these areas received the most support for increased funding. In contrast, Zillow and Realtor.com are the only channels where more agents plan to reduce their investments rather than increase them.

The report also revealed discrepancies in performance between brokerage firms. For instance, agents with Compass were able to convert content into deals at a rate 2.4 times higher than those at Keller Williams, while the latter excelled at generating leads from Google ads with 3.1 times higher productivity.

Conclusion

The insights provided by the 2026 State of Real Estate Marketing Report are pivotal for agents looking to optimize their marketing strategies and leads generation efforts. By understanding where their investments yield results and where they fall short, agents can strategically allocate their marketing budgets moving forward. The report is available for free download at 2026realestatemarketing.com. This significant data reinforces the notion that effective real estate marketing cannot merely rely on traditional methods but must evolve to adapt to current technology and market behaviors.