Cracking the Housing Market Code: Jome’s AI-Powered Solution for Builders & Buyers

Written by:

Steve Marcinuk

Date:

19 Feb 2025

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With over 50% of outstanding mortgages below 3.5%, the traditional resale market has stalled. In this challenging environment, Jome CEO Dan Hnatkovskyy has identified and capitalized on a crucial market opportunity in new construction sales, building a platform that’s reshaping how builders connect with qualified buyers across 17 markets.

“Builders have land investments, construction loans, and are incentivized to sell a lot more than you might think,” Hnatkovskyy explains, highlighting the unique dynamics driving the new construction market. “That’s why they’re offering significant incentives.” These builder incentives, including interest rate buydowns, eliminated closing costs, and waived deposits, have created unexpected opportunities for buyers who might otherwise be sidelined by current market conditions.

Proven Results Through Technology

Jome’s market impact is measurable. Their current model sprung from a pandemic pivot in late 2020 – a new concept Hnatkovskyy tested on a simple landing page with a Google ads campaign – quickly proved there was demand for the concept, generating qualified leads for a fraction of what they anticipated. With demand established and some simple feasibility analysis conducted, the team raised additional capital around the new direction and has proven successful with meaningful market penetration, particularly benefiting first-time homebuyers.

“Most of our buyers are first-time home buyers,” notes Hnatkovskyy. “Some people have been saving money for over 10 years. They’ve been preparing for to purchase a home their whole life.” The platform has facilitated numerous success stories, including a Tampa family who purchased a $340,000 home with less than $10,000 in total closing costs and down payment, just one of many success stories demonstrating the platform’s ability to make new construction accessible to buyers with limited savings.

For builders, particularly small and mid-sized operations competing with industry giants like Lennar and Pulte, Jome’s platform offers a vital sales channel. The company has leveraged AI technology to make builder inventory more searchable and accessible to potential buyers, while streamlining the sales process. The platform allows builders to showcase inventory to a wider audience while maintaining control over their sales process and brand identity. This technological edge has helped the company secure over $16 million in funding and grow to more than 150 employees.

Future Market Challenges and Opportunities

Hnatkovskyy’s market analysis points to significant shifts ahead for builders. He cites potential tariffs on Canadian and Mexican imports as a key factor that could impact construction costs. “If we expect costs to increase by 25%, that means construction costs will increase by 8-12%,” he notes, suggesting builders and developers should prepare for potential price appreciation in the coming year.

The Digital Transformation of New Home Sales

The platform’s success in facilitating entirely online purchases, such as a recent sale of a Terrata home in Spicewood near Austin to a Boston resident, demonstrates the evolving nature of new home sales. This digital transformation of the buying process is particularly relevant as builders seek to expand their reach beyond local markets.

As builders capture increasing market share from resales, Jome’s approach offers a glimpse into the future of home builder sales. By focusing on the specific needs of both builders and buyers, while leveraging technology to create more efficient connections between the two, the platform is helping to reshape the new construction sales landscape in an increasingly challenging market environment.