Scarcity is one of the most powerful tools in a marketer’s toolkit. Defined as the psychological response triggered when limited supply meets high demand, it taps into our natural fear of missing out. In real estate—especially in project marketing—scarcity is everywhere. Phrases like “Only two homes left!” or “Final release—act now!” are designed to create urgency and prompt quicker decisions.

And make no mistake—when used authentically, scarcity works. It heightens perceived value, accelerates buyer timelines, and can drive meaningful results.

But here’s the challenge: in today’s market, those scarcity cues aren’t landing the same way. Why? Because they don’t feel real. Inventory is sitting. Timelines are extending. Buyers have more time and more options—and they know it.

That doesn’t mean people aren’t buying. It just means the playbook needs adjusting. When scarcity isn’t credible, it loses its power. But the good news is there are many other levers of influence you can use to build trust, create urgency, and close the sale—without relying on tactics that no longer resonate.

The Psychology Behind Scarcity

Before we dive deeper into scarcity, it helps to understand where it fits within the broader landscape of persuasion.

In marketing and behavioural science, levers of influence are psychological principles that explain how people make decisions and why certain messages compel them to act. The levers—authority, social proof, reciprocity, and scarcity—tap into predictable patterns in human behaviour. They’re powerful because they often operate beneath our awareness, subtly shaping decisions without overt pressure.

The lever of influence known as scarcity exists in the space between limited resources and unlimited desires (Shi, Li, & Chumnumpan, 2020). When people perceive that a product or opportunity is difficult to obtain, it triggers a sense of urgency—prompting them to prioritize acquiring it (Cialdini, 2006).

If you’ve worked in real estate, you know this principle intimately. Scarcity is one of the most commonly used influence strategies in the industry. Every listing is framed as unique and irreplaceable. Property descriptions frequently include phrases like “won’t last long,” “exclusive offering,” or “competing offers expected”—all designed to amplify urgency and encourage immediate action.

When something is rare, we tend to perceive it as more valuable—whether it’s a physical object or an opportunity (Cialdini, 2006). In fact, people are often more motivated by the fear of losing something than by the hope of gaining something (Cialdini, 2006). This ties into loss aversion—a psychological bias that drives people to avoid loss, even when doing so may not make rational sense. In real estate, this can show up when an agent continues working with a non-committal client far longer than is financially sound, simply because they’ve already invested so much time and energy and don’t want that effort to go to waste.

What’s at Work Behind Scarcity

Scarcity works because it taps into some of our most basic psychological drivers. When something appears limited—whether it’s a product, a service, or an opportunity—it naturally feels more valuable. That perception triggers urgency and can make people more likely to act (Shi, Li, & Chumnumpan, 2020).

Why? Because scarcity doesn’t just make something seem rare—it satisfies a variety of internal needs. From the desire to stand out to the fear of missing out, scarcity appeals to our emotions and instincts in ways we often don’t fully realize. Even when temporary or manufactured, scarcity has the power to increase perceived value and drive demand—so long as it aligns with what people believe or expect.

Let’s take a look at the key psychological forces that make scarcity so compelling:

The Need for Uniqueness

Scarcity allows people to feel special—like they own or have access to something few others do. This is especially true for limited-edition products, customized services, or exclusive experiences (Shi, Li, & Chumnumpan, 2020). According to commodity theory, people assign higher value to things that are hard to get (Shi, Li, & Chumnumpan, 2020). For consumers who take pride in their individuality, owning something scarce helps reinforce that identity.
Interestingly, people who strongly value uniqueness may even withhold information about scarce opportunities from others—because sharing would reduce its exclusivity (Shi, Li, & Chumnumpan, 2020).

The Desire for Conformity

On the other end of the spectrum, scarcity also appeals to people who want to fit in. When something is in high demand, the bandwagon effect kicks in—if “everyone else is doing it,” people feel they should, too. In this case, scarcity acts as social proof: a signal that something is popular and worth having (Shi, Li, & Chumnumpan, 2020).

The Fear of Future Regret

Nobody likes missing out. When faced with limited-time offers or low-stock alerts, many people act quickly—not because they urgently need the product, but because they don’t want to regret not acting (Shi, Li, & Chumnumpan, 2020). This fear of future regret is especially powerful when there’s a clear deadline or quantity limit. It can even lead to hoarding behavior, as we saw during the early days of the COVID-19 pandemic (Shi, Li, & Chumnumpan, 2020).

Psychological Reactance

Sometimes, simply being told we can’t have something makes us want it more. This is called psychological reactance—a reaction to perceived threats to our freedom of choice (Shi, Li, & Chumnumpan, 2020). When options feel restricted, desire intensifies. Scarcity, in this sense, doesn’t just increase interest—it fuels determination (Shi, Li, & Chumnumpan, 2020).

How Scarcity Is Already Used in Real Estate Marketing

Scarcity has become one of the most familiar tools in real estate marketing, particularly in new home developments and presale projects. It’s not hard to see why—real estate is, by nature, a high-stakes decision, and scarcity helps encourage action in the face of uncertainty.

In many ways, the structure of real estate campaigns naturally lends itself to scarcity messaging. Here are a few common ways it shows up:

Final Release and “Last Chance” Campaigns

As developments move through different phases, phrases like “Now selling: Final release” or “Last chance to purchase”are used to let potential buyers know the window of opportunity is closing. It’s a powerful message, especially for those who’ve been watching a project and waiting for the right time to act.

VIP Previews and Exclusive Access

Early access events—like realtor previews or VIP registrant showings—create a sense of exclusivity and reward those who’ve engaged early. They allow marketers to frame the experience as unique, timely, and tailored, helping prospective buyers feel like they’re part of something special.

Time-Limited Incentives

Promotions like “For a limited time only” or “Offer expires this weekend” are designed to create a sense of urgency. These messages help buyers focus their attention and can be especially effective for those who are already leaning toward making a decision.

Visual Cues in Presentation Centres

Site maps marked with red dots, “sold” signage, and sales activity boards are all subtle but persuasive signals. They suggest popularity, progress, and social proof—each of which can nudge buyers toward a decision when used with care. 

Messaging that Communicates Demand

Phrases like “Selling quickly”, “Popular home type”, or “Only a few remaining” convey demand-driven scarcity. These cues reassure buyers that others see value in the offering and that the opportunity may not last.

These strategies aren’t exclusive to project marketing—they’re used across all segments of the industry, from resale to luxury to investment. They’re grounded in real psychological principles and, when used authentically, can make marketing more effective and buyer decisions easier.

What’s important is not whether scarcity is used, but how it’s used—and whether it resonates with today’s market realities. That’s what we’ll explore next.

Why Scarcity Isn’t Working in This Market

Scarcity is a powerful tool—but only when it’s believable. For it to work, it must feel authentic. If your audience doesn’t expect something to be limited and you suddenly claim it is, they may become skeptical. Expectations matter. When a buyer doesn’t anticipate that a home or opportunity is rare, framing it as such can feel disconnected from reality (Shi, Li, & Chumnumpan, 2020).

The role of scarcity in marketing is to highlight real constraints—not to manipulate them. Overusing phrases like “limited time only” or “exclusive offer” without context can actually harm your credibility. When scarcity messaging doesn’t align with what buyers see or feel, it starts to erode trust rather than build urgency.

There are two common types of scarcity:

• Demand-induced scarcity occurs when interest exceeds availability—such as “100 buyers already registered” or “filling up fast.”
• Supply-induced scarcity happens when availability is naturally limited, like exclusive units or limited-edition offerings (Shi, Li, & Chumnumpan, 2020).

Of the two, demand-induced scarcity is typically more effective because it signals popularity. People want what others want.

But in today’s market, demand is softer. Inventory is lasting longer. Interest rates are higher. Buyers are taking their time and doing their homework. When they hear “Only two homes left!” they’re just as likely to wonder, “Then why has it been sitting for 60 days?”

If urgency messaging doesn’t match market reality, it doesn’t motivate—it raises red flags.

Buyers are no longer reacting on impulse. They’re thoughtful, informed, and more analytical than ever. Many have a high “need for cognition”—a psychological trait that makes them more likely to evaluate messages critically. These buyers aren’t easily swayed by surface-level cues like countdown timers or “Act Now!” language unless it’s backed by tangible evidence (Shi, Li, & Chumnumpan, 2020).

This doesn’t mean scarcity is obsolete. It means it must be real. In a brokerage or project marketing setting, genuine scarcity might come from limited team bandwidth, capped inventory, exclusive service packages, or seasonal offerings. It may also stem from operational decisions—like giving early access to VIP clients or offering limited mentorship spots.

Whatever the constraint, if it’s true and transparent, it will strengthen your message. If it’s exaggerated or disconnected from buyer experience, it risks doing the opposite.

The bottom line? Scarcity still works—but only when it’s earned. Use it to reflect reality, not to rewrite it.

How to Use Scarcity Authentically

Scarcity still has power—it just needs to be rooted in truth. In today’s market, buyers are more discerning, and trust matters more than ever. If you want scarcity to work, it has to feel honest and aligned with what buyers see and experience. Here’s how to do that:

• Use scarcity language only when it’s accurate. If inventory isn’t moving quickly, don’t claim it is. Instead, focus your message on value, stability, or other timely benefits.
• Support urgency with real data. If prices are increasing, incentives are ending, or several units have already sold, say so. Specific, visible proof builds credibility and gives buyers a reason to act.
• Use exclusivity with intention. VIP previews, early access events, or agent-only tours can work well—if they’re genuinely limited and tied to something meaningful.
• Match your messaging to the market. Tactics that worked in a red-hot market won’t translate the same way today. Take the time to adjust your tone and align your language with your audience’s mindset.

Scarcity isn’t broken—it just needs to be real. When it’s used with care, it can still be one of your most effective tools. But in this market, authenticity matters more than urgency. Trust is what closes the gap.

The Good News

While scarcity—long a favorite tool in real estate marketing—may not be landing quite the way it used to, there are many other powerful strategies available. Take authority, for example: well-researched, verifiable claims can build confidence and drive decisions. Liking also goes a long way—people are more likely to respond positively when they feel genuinely liked and understood. Then there’s social proof, a consistently strong motivator. If others are buying, sharing that momentum can offer reassurance and encourage action.

In short, if scarcity isn’t connecting in today’s market, you’re not out of options—you’re just ready to expand your toolkit.

Need a New Marketing Campaign? I Can Help With That

If you’re rethinking your marketing strategy in today’s shifting landscape, I’d love to support you. Whether you need help applying the right lever of influence, crafting a precise and intelligent message, or guiding your team to communicate with greater clarity—I offer consulting, content development, and instructional services designed to meet your goals with purpose and polish.

Why Work With Me

I bring more than just experience—I bring strategy, insight, and care. I spent over a decade as a top-producing agent in the Fraser Valley, consistently ranking among the 10% of agents. I hold a BBA in leadership, a certification in adult education, and I’m currently completing an MBA focused on change management. I am licensed as a managing broker and I have a background in accounting.

I teach legal issues and customer service in the Home Builder Licensing program at BCIT, and I’m proud to be stepping into instructional roles with both the Fraser Valley Real Estate Board and the BC Real Estate Association. If you’re ready to elevate your marketing with clarity and intention, I’d be honoured to help you get there.

References 

Cialdini, R. B. (2006). Influence: The Psychology of Persuasion (Revised ed.). Harper Business.

Shi, X., Li, F., & Chumnumpan, P. (2020). The use of product scarcity in marketing. European Journal of Marketing, 54(2), 380–418. https://doi.org/10.1108/EJM-02-2018-0139