When Christopher MacFarlane searched for an apartment in Hoboken, New Jersey, this past summer, he found listings online that appeared promising, with ample natural light and spacious, well-decorated rooms. However, upon visiting in person, the reality fell far short of expectations: bedrooms were cramped, an office was little more than a closet, and the bright ambiance was missing. MacFarlane, a 38-year-old graphic designer, discovered the discrepancy was due to the use of artificial intelligence (AI) to alter listing photos.
MacFarlane’s experience exemplifies a growing trend in real estate marketing where images and videos are digitally enhanced or generated using AI tools. Real estate agents and brokers, aiming to present properties in the best light, are increasingly relying on this technology to edit photos—sometimes dramatically altering the appearance of spaces. Common modifications include brightening rooms, adding virtual furniture, or creating features such as fireplaces that do not actually exist.
Jeff Radlin, an agent who showed MacFarlane the Hoboken apartment, defended the use of AI, saying it helped present the unit as cleaner while previous tenants were still living there. “If we were to use actual pics of cluttered apartments,” he explained via email, “half the people wouldn’t bother coming.”
This practice, however, has sparked criticism from potential renters and buyers who say it wastes time and amounts to false advertising. MacFarlane and others have noted AI-altered photos misrepresent bathroom fixtures, kitchen cabinetry, and other key elements, complicating the search process.
The use of AI in real estate marketing marks an evolution on traditional “virtual staging,” where software like Photoshop was used to add furniture or décor to empty rooms. AI’s growing sophistication has made it easy to generate enhanced or entirely fabricated images and videos, often flooding real estate platforms such as Zillow and StreetEasy with deceptive visuals. Some states have moved to regulate the practice: California and Wisconsin have enacted laws requiring disclosure when AI significantly modifies listing images. Meanwhile, New York and New Jersey are considering similar measures. New York City Mayor Zohran Mamdani has advocated for mandatory transparency by brokers to protect renters from misleading listings.
Social media users have amplified awareness of AI’s impact on real estate searches. TikTok influencer Curt Walker shared videos illustrating deceptive listings, including one where a kitchen contained a shower instead of conventional fixtures. In Portland, Oregon, a condo listing featured a cozy fireplace in an AI-generated video tour; however, the broker, Brian Porter, disclosed that the fireplace was not real and appeared only as decoration created by AI.
Porter, who only used AI for this particular listing because the condo was occupied, expressed ambivalence about the approach, noting he had no control over AI’s creative additions. Zillow acknowledges AI-generated modifications are becoming more common and harder to detect. The company supports transparency and urges agents to represent homes accurately, recommending that original and altered images be made available side-by-side when substantial AI edits are applied.
Industry professionals remain divided. Alok Gupta, CEO of AutoReel, which creates AI-driven real estate videos, argues the technology reduces costs and accelerates marketing. He advocates for disclosure but considers AI enhancements acceptable if they do not alter a home’s fundamental layout, such as moving doors or windows. “You are just enhancing what already existed,” he said.
Conversely, some brokers say AI-generated images have complicated their jobs, making it difficult to verify what is genuine. Real estate agents Haley Reynolds and Lindsay Crum describe spotting AI use through inconsistencies like mismatched lamps or discrepancies with Google Street View imagery. Crum warns that some peers have used AI to make significant changes, raising questions about where to draw ethical boundaries in real estate advertising.
As AI tools grow more pervasive in property marketing, the debate continues over balancing innovative presentation techniques with the need for honest and accurate representation to protect consumers.