AI Is Creating Fake Photos for Property Listings

The AI vs Reality Problem in Listings

House hunters are raising alarms over a deceptive new trend: real estate listings that feature AI-generated images instead of actual photos of the property. The digitally created pictures often present a far more polished and pristine version of a home, leading to a jarring disconnect when potential buyers see the property in person.

Image via DeAnn Wiley / X / Google Maps / Zillow

The issue gained significant attention when DeAnn Wiley shared a striking example on X. The image showed a picturesque, AI-generated house from a Zillow listing in Detroit that looked nothing like the real-world version of the house found on Google Maps.

"So I’m noticing, as I look at houses to rent, that landlords are using AI to stage the pictures but the AI is also cleaning up the walls, paint, windows and stuff in the process," Wiley noted on X. "So when you go look in person it looks way more worn and torn than the pics would show.”

How AI Is Distorting Property Features

This isn't an isolated incident. A report from Wired highlights how prospective buyers are frequently encountering bizarre and misleading images. One user in Michigan shared examples on Reddit of AI-altered homes with nonsensical architectural features.

"There were stairways leading to nowhere,” she told the tech publication. “This is misleading. It’s distorting the features of the house.”

• See the Reddit post

In another case, a Redditor searching for apartments in New York City found a StreetEasy listing that used an AI image to make a tiny loft bedroom appear significantly larger than it actually was.

• View the NYC apartment post

A Controversial New Tool for Realtors

Despite the potential for deception, some in the industry see AI as a powerful and efficient tool. Realtor Jason Haber defended the practice to Wired, framing it as the next evolution of virtual staging.

"Why would I send my photos of an empty room to a virtual stager, have them spend four days and send it back to me at a charge of 500 bucks when I can just do it in ChatGPT for free in 45 seconds?" Haber asked. He argued that since virtual renderings have been used for two decades, AI is simply a new, faster method.

However, this practice directly clashes with industry regulations. The National Association of Realtors has rules that specifically prohibit the use of misleading images in property listings.

The Future of AI in Real Estate Marketing

As AI tools become more accessible, the trend of using generated images is likely to accelerate. Companies like AutoReel now specialize in transforming basic property photos into polished AI-driven videos, further blurring the line between representation and reality.

If you are a real estate photographer being affected by this trend, the original reporting team would be interested in hearing from you.