Creators 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 renterswith one section addressingthe proliferation of fake or misleading listings that have been digitally altered.
The enhanced apartment or house listings, known in some circles as “housefishing” or justAI real estate slopcan 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 onlinewhere 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 practicesthat 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 AIa 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.
The underlying issue seems to be transparency — any significantly modified listings should be openly disclosed. Organizations that represent realtors and companies that host listings say they’re aware of the rise of AI and are working to ensure what shoppers see is legitimate.
A spokesperson for the National Association of Realtors told CNET in an email that buyers ideally should be able to trust that any marketing material about a property’s condition and features is accurate. The NAR said it expects realtors to uphold its code of ethics, which “includes the requirement to present a true picture in advertisement, marketing, and representations to the public, and to comply with applicable laws.”
A report the NAR released last year showed that most realtors are eager to embrace new technology, but nearly a third haven’t yet used AI for their business.
A representative for Realtor.com told CNET said that if house or apartment hunters encounter fake or misleading information in listings, they should alert the relevant company or the local MLSwhich is the regional database and feed where real estate professionals share listings.
“Each MLS sets its own rules for what is permissible in listings, including on AI-generated or digitally altered photos and text. Where states have enacted laws on this topic, we create market-specific policies to align with those requirements,” the Realtor.com spokesperson wrote.
Identifying red flags
Zillow.com, the largest real estate listing company, said it supports initiatives that protect consumers and support transparency, “while still allowing for responsible uses of AI that help shoppers better understand a property.” A Zillow representative told CNET that renters and buyers should be able to view both original and doctored content. The company recently published an article outlining its AI standards, noting that “agents and brokers carry front-line responsibility for accuracy.”
Zillow advises renters and buyers to compare photos against descriptions, floor plans and virtual tours and to be mindful of inconsistencies. “If the photos do not add up, it can also be helpful to request a live video walkthrough or ask their agent direct questions before touring,” the representative told CNET.
The company says its Showcase listings use professional photographers booked through Zillow and include clearly labeled information along with original, unaltered photos.
As a general guidance, if something looks too good to be true, it probably is. In today’s digital age, where online marketplaces are inundated with AI slop, the idiom “what you see is what you get” doesn’t always apply to a lot of things.