The Unsettling Rise of AI Real-Estate Listings

Homebuyers are unsettled by AI-generated listing photos that create an unrealistic dream home

Published on Feb. 4, 2026

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Real estate agents are increasingly using AI to generate listing photos, but homebuyers are finding the results unsettling. The AI-created images can make homes look more appealing than they are in reality, leading to disappointment when buyers see the actual property. This speaks to the psychological role a home plays in people's lives, as a place to project their dreams and aspirations. Experts warn that AI listing photos risk setting people up for disappointment by selling an unattainable dream.

Why it matters

The rise of AI-generated real estate listing photos highlights the complex psychological function of a home for buyers. Homes are not just physical structures, but vessels for people's aspirations and sense of identity. Manipulating listing imagery, even if technically legal, can undermine that psychological experience and lead to dissatisfaction.

The details

Real estate agents are turning to AI tools that can generate images of furnished homes, saving the cost of physically staging properties. However, when potential buyers visit these AI-enhanced listings, they often feel let down and disoriented, unable to pinpoint exactly why. Experts say the uncanny, almost-but-not-quite-realistic nature of the AI images triggers an unsettling psychological response, akin to the "uncanny valley" effect seen with AI-generated human faces and food. This is because homes serve as a "theater of our lives," and the marketing imagery sets the foundation for how people envision living in a space. AI listing photos risk selling an idealized, unattainable dream that can only disappoint.

  • In a recent survey, nearly 70% of real estate agents reported using AI to generate listing photos.

The players

Kati Spaniak

An Illinois-based real estate agent who tried using AI-generated listing photos, but found they disappointed potential buyers.

Ayelet Fishbach

A professor of behavioral science and marketing at the University of Chicago, who believes both buyers and sellers lose when AI listing photos are used.

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What they’re saying

“They don't even really recognize why they're upset. They just feel let down.”

— Kati Spaniak, Real estate agent

“Both buyers and sellers lose.”

— Ayelet Fishbach, Professor of behavioral science and marketing, University of Chicago

What’s next

As the use of AI in real estate listings continues to spread, lawmakers and regulators may need to provide clearer guidelines on disclosure and transparency requirements to protect consumers from misleading imagery.

The takeaway

The rise of AI-generated real estate listing photos underscores the complex psychological role a home plays in people's lives. Homes are not just physical structures, but vessels for people's aspirations and sense of identity. Manipulating listing imagery, even if technically legal, can undermine that psychological experience and lead to widespread dissatisfaction among homebuyers.