AI is cursing renters with the promise of impossible homes
Artificial intelligence is increasingly used to enhance real estate photos, creating unrealistic expectations for potential tenants. Some US states are introducing laws requiring disclosure of such image manipulation.
Real estate brokers have long used tricks to make even the most rundown apartments look appealing in photos, but generative AI has made this much easier and cheaper. According to reports, prospective renters are increasingly encountering situations where the actual apartment differs significantly from its online images.
Joyce, a New Yorker, described her search for her first solo apartment as "hell." After looking at many tiny, overpriced places, she found what seemed like a dream apartment online: a reasonably priced studio in Manhattan with a fireplace and a renovated kitchen. When she arrived for viewing, she discovered the apartment was much smaller, the kitchen sink was different, the stove was missing knobs, and there was no fireplace. Her friend noted they should have known AI was involved because there was a plant on the gas stove in the photo.
Bee, a Florida Realtor who asked for anonymity, said virtual staging is not new, but AI expands possibilities. She uses AI tools to show clients how rooms could look after renovations but does not post such images in listings. She believes there is a fine line between demonstrating potential and creating deceptive images, and that a lawsuit is inevitable.
Madison, a Queens resident, noticed an increase in AI-enhanced listings on StreetEasy. Joyce added that such photos often feature many potted plants—a realistic-looking detail that is actually AI-generated. She pointed out that brokers were already dishonest, and now they have a "lying machine."
Some states are starting to crack down. New York passed a law requiring disclosure of AI in ads, but it mainly focuses on synthetic performers, not AI-generated furniture. California's new Altered Image Law goes further, requiring disclosure when AI is used to alter or enhance images. However, regulations vary by state.
Renters now must spend more time scrutinizing every listing to avoid being misled. Joyce noted that descriptions also sound uniform—always "charming," "cozy," with "spa-like finishes." She warns that this trend will only intensify.
