Apartment hunters and homebuyers across the United States are increasingly encountering artificial intelligence–generated images in real estate listings, raising concerns about misleading portrayals of properties. The use of AI tools to enhance or alter listing photos has grown widespread on platforms such as Zillow and StreetEasy, often presenting homes in a more appealing light but sometimes creating unrealistic or inaccurate representations.
Christopher MacFarlane, a graphic designer searching for an apartment in Hoboken, New Jersey, encountered the issue firsthand this summer. After seeing a listing that appeared bright and spacious with tasteful décor, he found the actual unit significantly different—smaller rooms with less natural light and a cramped office space. Uploading the listing images to OpenAI’s verification tool confirmed that many had been artificially generated or altered using AI.
Real estate agents defend the practice as a way to make occupied or cluttered apartments appear cleaner and more attractive to prospective tenants. Jeff Radlin, the broker showing MacFarlane’s apartment, said the intention was not to depict a larger space but to remove distractions caused by previous tenants’ belongings. Still, critics argue that such alterations amount to false advertising that wastes buyers’ and renters’ time.
For years, virtual staging software has allowed brokers to add furniture or décor to empty rooms, but advancements in AI have made it possible to generate entire images or videos with exaggerated features such as glowing windows, lush lawns, vivid sunsets, and artificial fireplaces. Some hosts openly disclose AI usage; for example, a Portland, Oregon, condo listing featured an AI-generated video tour including a non-existent crackling fireplace, a choice made without the broker’s ability to control the detail.
The increasing use of AI in real estate marketing has prompted legislative responses. California and Wisconsin have enacted laws requiring agents to disclose significant AI alterations in listings, and other states, including New York and New Jersey, are considering similar regulations. New York City Mayor Zohran Mamdani has advocated for mandatory disclosure of AI use in rental listings to protect consumers from being misled.
Industry leaders stress the need for transparency. Zillow, the country’s largest real estate site, cautions that AI-generated photos are becoming harder to detect and insists on accuracy in property representations. The company supports disclosures when AI materially changes listing images and recommends offering consumers the option to view original photos alongside altered versions.
Some technology providers highlight the cost and time efficiencies AI can bring. Alok Gupta, CEO of AutoReel, a company that produces AI-generated real estate videos, notes that traditional staging can be expensive and time-consuming, whereas AI tools offer affordable alternatives that enhance existing features without changing structural elements. Gupta emphasizes that disclosure is important and ethical in AI use.
Nevertheless, the sophistication of AI-generated images presents challenges even to real estate professionals. Agents such as Haley Reynolds in Minnesota and Lindsay Crum in Florida report difficulties distinguishing AI-altered photos from genuine ones, noting telltale signs like mismatched lighting or inexplicably perfect features. Some agents express concern about where to draw the line between reasonable enhancement and misleading modifications.
As AI technology becomes more prevalent in property marketing, the real estate industry faces growing calls for clearer guidelines and ethical standards to ensure accurate and honest communication with consumers.