Do AI images help or hinder apartment sales? Pros, cons, and what to watch for

From basic staging tactics that aim to hide everyday clutter to elaborate staging scenarios that transform properties by bringing in designer furniture and original artworks, property staging is a tried-and-true part of selling homes. According to a recent report by the National Association of Realtors, staging not only generally increases the dollar value offered on properties but also decreases the number of days a property spends on the market.

In an age of artificial intelligence (AI), home staging, like so many things, is being handed over to digital agents. But do AI-staged properties have the same impact on prospective buyers as properties that are professionally staged and photographed in real life?

What is AI staging?

AI staging refers to using AI to enhance photos of a property. In most cases, enhancements include adding furniture, artwork, and lighting effects. Some AI-enhanced photos also add architectural elements that are not already installed or remove unappealing features, such as dated tilework, peeling paint, or old kitchen cabinetry. While virtual staging has existed for many years, emerging AI tools are not only faster and more affordable but also can generate multiple versions of a room, even creating the opportunity to directly target different buyer demographics.

136 East 79th Street, Upper East Side co-ops

136 East 79th Street, #4B used AI-generated characters to market the listing. It entered contract in less than two months, but ultimately closed for over 25% below ask (Compass | https://www.cityrealty.com/nyc/park-fifth-ave-79th-st/136-east-79th-street/5724/4B)

Potential benefits of AI staging

In many respects, AI staging is beneficial because it can, when used ethically, increase transparency. If you’re selling an apartment with an 8.5 x 11.5-foot bedroom, for example, AI staging can help prospective buyers see exactly how much floor space a queen-size bed and dresser will cover in the room. But even if you’re not worried about squeezing basic furniture into a bedroom, AI staging can be helpful and appealing, which is likely why AI staging tends to increase traffic to listings posted online. Whether AI staging necessarily translates into more sales, however, is questionable.

Misrepresentation and eroding buyer trust

Problems tend to arise when AI is used to misrepresent rather than represent a property. If a modest walk-up in Queens is staged to look like a luxury loft in Soho, when prospective buyers visit the property in person, they are almost certain to feel let down. As Franklin Schneider observed in “The Unsettling Rise of AI Real-Estate Slop,” a recent article in The Atlantic, “Fake imagery in home sales are like heavily edited photos on a dating profile—people are going to realize they’ve been fooled as soon as they walk in the door.” If potential buyers feel duped as soon as they show up to view a property, the likelihood of a sale decreases.

A 2025 study published in the International Journal of Information Management found that consumers may even prefer photos of properties staged in real life, rather than those generated by AI. Unsurprisingly, trust is a huge factor. As the authors of the study found, “Real images…are perceived as more trustworthy and aligned with customer expectations, helping to build their confidence in the service.” Given that a home is usually the largest purchase a person will ever make, this is unsurprising.

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The call for regulation and how to file a complaint

Although the Federal Trade Commission does not yet have specific guidelines on AI-enhanced photos, in fall 2025, former FTC Chair Lina M. Khan issued a statement emphasizing, “Using AI tools to trick, mislead, or defraud people is illegal.” She further asserted, “The FTC’s enforcement actions make clear that there is no AI exemption from the laws on the books.”

In New York State, Real Property Law also prohibits dishonest or misleading advertising and subjects real estate agents and brokers to disciplinary action if they knowingly participate in such practices (Real Property Law § 441-c). For this reason, all advertisements must include an honest and accurate depiction of the property being sold or leased. If you’re a prospective buyer who feels you have been duped by an AI-enhanced listing, you can file a complaint with the NYS Department of State Division of Licensing Services’ Complaint Review Office.

Precautions for sellers and buyers

For sellers, AI staging should be seen as one tool among many to help buyers imagine a property's potential (e.g., to appreciate its actual dimensions, layout, and condition). However, given the strong indications that buyers aren’t just skeptical but may even take their business elsewhere if they conclude a listing’s images were misleading, it is important to use AI staging tools with caution. One suggestion is to always provide both staged and unstaged images, as this allows prospective buyers to imagine a space’s potential while also giving them access to images that reflect the space in its current state.

As for buyers, it goes without saying that it pays to be on the lookout for heavily AI-enhanced listings. Tell-tale signs include architectural details that look too good to be true and, of course, doors and staircases that seem to lead to nowhere. It is also important to recognize that AI staging does not replace the importance of an in-person property evaluation. With few exceptions, if you’re serious about making an offer, visiting the building and unit in person is still the best way to determine whether it meets your expectations, even in an era of AI.

Worldwide Plaza, #5CC
$1,299,000

Midtown West | Condominium | 1 Bedroom, 1 Bath | 814 ft²

Worldwide Plaza, #5CC (Corcoran Group)

From the Listing: This sunlit, one-of-a-kind 1-bed/1-bath duplex offers two outdoor spaces, designer updates and a versatile layout, including an option to add a home office. The 662-square-foot rooftop terrace faces south, north and east, overlooking the landscaped courtyard with open views of the city skyline. See floor plan and full details here.

Dag Hammarskjold Tower, #37AB
$2,695,000

Turtle Bay/United Nations | Condominium | 4 Bedrooms, 4.5 Baths | 2,087 ft²

Dag Hammarskjold Tower, #37AB (R New York)

From the Listing: A rare opportunity to own a meticulously crafted, grand-scale residence in one of Midtown’s most prestigious full-service condominiums. Perched on the 37th floor of Dag Hammarskjold Tower, Residence 37AB spans 2,075 square feet, offering 3 bedrooms, a home office, and 4.5 bathrooms and two spacious balconies. See floor plan and full details here.

160 Henry Street, #8C
$5,000,000

Brooklyn Heights | Cooperative | 4 Bedrooms, 3 Baths

160 Henry Street, #8C (Serhant)

From the Listing: Perched above the treetops of Brooklyn Heights, Residence 8C at 160 Henry Street frames sweeping views of the Manhattan skyline and East River from a series of beautifully scaled pre-war rooms. Spanning over 2,300 square feet, the residence was thoughtfully created through the seamless combination of two apartments and meticulously renovated in 2018, bringing modern livability to classic 1920s architecture. See floor plan and full details here.

179 Sullivan Street, #TH
$18,750,000

Greenwich Village | Townhouse | 6+ Bedrooms, 6+ Baths | 8,049 ft²

179 Sullivan Street, #TH (Nest Seekers LLC)

From the Listing: Repositioned as Art Haus, this 25-foot-wide Greek Revival townhouse has been transformed into a portfolio of luxury, art filled, exquisitely furnished short-term rentals plus a ground-floor commercial suite- nearly doubling its income from prior use. It is, quite simply, the best investment in the best location. All units are in excellent condition, the property runs almost entirely on its own, and there remains meaningful upside for the next owner. See floor plan and full details here.

One Hundred Barclay Tribeca, #PHSOUTH
$25,950,000

Tribeca | Condominium | 5 Bedrooms, 5.5 Baths | 7,062 ft²

One Hundred Barclay Tribeca, #PHSOUTH (Corcoran Group)

From the Listing: Penthouse South at One Hundred Barclay is a 7,062-square-foot duplex of exceptional scale and character, offering a rare opportunity to own a turnkey Paris Forino-designed residence in Tribeca. The home features five bedrooms, five bathrooms, two powder rooms, and a private loggia, with abundant natural light from south, east, and west exposures. See floor plan and full details here.

The Spears Building, #PHD
$7,995,000

Chelsea | Condominium | 4 Bedrooms, 2 Baths | 4,022 ft²

The Spears Building, #PHD (Corcoran Group)

From the Listing: A true West Chelsea dream, this sprawling 4,022-square-foot penthouse offers the ultimate in loft-living, with 2,500 square feet of private outdoor space-for an unprecedented $7,995,000. With exposed brick, polished concrete floors, soaring ceilings that reach up to 13' tall, and skylights throughout, this penthouse beckons a bygone era where raw and industrial bones meet modern sophistication, much like its world-famous supermodel owner, who once called this home. See floor plan and full details here.

In this article:

What is AI staging?

Potential benefits of AI staging

Misrepresentation and eroding buyer trust

Select which properties are of interest to you:

The call for regulation and how to file a complaint

Precautions for sellers and buyers

Worldwide Plaza, #5CC
$1,299,000

Dag Hammarskjold Tower, #37AB
$2,695,000

160 Henry Street, #8C
$5,000,000

179 Sullivan Street, #TH
$18,750,000

One Hundred Barclay Tribeca, #PHSOUTH
$25,950,000

The Spears Building, #PHD
$7,995,000

Turn Favoritesinto Tours!

In this article:

What is AI staging?

Potential benefits of AI staging

Misrepresentation and eroding buyer trust

Select which properties are of interest to you:

The call for regulation and how to file a complaint

Precautions for sellers and buyers

Worldwide Plaza, #5CC$1,299,000

Dag Hammarskjold Tower, #37AB$2,695,000

160 Henry Street, #8C$5,000,000

179 Sullivan Street, #TH$18,750,000

One Hundred Barclay Tribeca, #PHSOUTH$25,950,000

The Spears Building, #PHD$7,995,000

Select which properties are of interest to you:

Listings in this article

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Worldwide Plaza, #5CC
$1,299,000

Dag Hammarskjold Tower, #37AB
$2,695,000

160 Henry Street, #8C
$5,000,000

179 Sullivan Street, #TH
$18,750,000

One Hundred Barclay Tribeca, #PHSOUTH
$25,950,000

The Spears Building, #PHD
$7,995,000