GoKawiilCreators of misleading AI-generated images on real estate sites have gained a powerful political enemy: New York City Mayor Zohran Mamdani.
The city administration recently released a Rental Ripoff Report (PDF) based on testimony from 2,400 renters, with one section addressing the proliferation of fake or misleading listings that have been digitally altered.
The enhanced apartment or house listings, known in some circles as “housefishing” or just AI real estate slop, can include AI-generated photos or details that have little resemblance to the actual property. Altered images are intended to mask flaws and present ideal conditions, such as repainted walls, artificial yards or added furniture. The alterations manipulate buyers and renters and lead to wasted time and resources.
To combat deceptive practices that mislead tenants, the New York City Department of Consumer and Worker Protection will require conspicuous disclosure for any rental listing that uses images that have been modified by AI or otherwise digitally doctored.
“These photos are typically not a true representation of the space and cost New Yorkers vital time and money during their apartment search,” the Rental Ripoff Report reads. The administration says it plans to work with StreetEasy, Zillow and other listings companies to enforce the rule, which is covered under the Consumer Protection Law.
New York’s proposal follows other efforts to address the rise of falsified online property listings. In California, a law passed earlier this year requiring real estate listings with altered photos to include a disclosure and the original photo for comparison. New Jersey is also considering a new law regarding fake real estate listing photos.
AI transparency and ‘housefishing’
The rise of “housefishing” and AI-driven real estate listings has sparked debates online, where some see the benefits of AI-generated information for making the property hunt easier. Showing a property’s potential through digital staging or virtual renovation might not be inherently dishonest. After all, agents have used computer-generated imagery to sell homes for decades.
Others decry deceptive practices that could trick buyers and renters, which exact a heavy emotional, financial and practical toll. The real question is where to draw the line with false advertising, especially when there are no disclaimers or disclosures.
In one Reddit thread calling for realtors to stop using AI, a user says they don’t mind if furniture is staged in an empty room. “But to totally change the design or look from what exists is too far,” SnowShoe86 wrote. Others point out that written listing descriptions, even without AI-generated photos, can be equally fraudulent. One user noted that a “charming bungalow” was in fact an abandoned property with a hole in the kitchen floor.
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