As AI in housing grows, buyers demand transparency and to keep humans in the loop

Three in four homebuyers assume artificial intelligence already plays a role in the homebuying process, but most still want humans making or verifying key decisions, according to a new global survey from property data firm Cotality.

Its AI in Housing 2026 Report, released Thursday, finds that 75% of buyers expect AI to be embedded somewhere in the transaction. They most commonly assume AI is used by property websites (86%), insurers (82%) and lenders (80%), with similar expectations for real estate agents (80%) and brokers (79%).

The report covers buyers in the U.S., Canada, the U.K. and Australia. Cotality surveyed buyers who purchased within the past five years and those who plan to purchase in two to five years. Responses were obtained across the Gen Z, Gen X, millennial and baby boomer cohorts.

The findings arrive as mortgage lenders, real estate brokerages and insurers accelerate deployment of AI in underwriting, lead routing, pricing, risk modeling and marketing. With more than $2 trillion in mortgage originations each year in the U.S., even marginal efficiency gains can materially affect capacity and capital availability for lenders.

Buyer confidence down, AI expectations up

U.S. buyer confidence in navigating the homebuying process has fallen to 72% in 2026, down from 83% in 2025, Cotality reported. The share of U.S. consumers actively saving for a home dropped from 75% to 69% during the same period.

Younger cohorts are more likely to see AI as part of the solution:

• 50% of Gen Z say AI would increase their confidence in buying a home
• 40% of millennials say the same
• 33% of Gen X and 21% of boomers report increased confidence with AI

Gen Z buyers report a particular need for speed from AI-enhanced services, especially for legal assistance (46%) and insurance (39%). In the U.S., buyers under 35 account for 37% of originated loans, underscoring the influence of younger borrowers on product and process expectations.

“Homebuyers want the speed and scale of AI — but not at the expense of certainty,” Amy Gromowski, head of data science at Cotality, said in the report.

Cotality estimates that AI-driven workflows could shorten mortgage processing times by one to three months, potentially allowing lenders to pull forward repayments, recycle capital more efficiently and expand capacity without adding staff.

Trust gap widens despite broad AI adoption

Even as buyers expect AI to be ubiquitous, trust in AI systems has weakened in the U.S. Trust in AI to help find a home fell to 16% in 2026, a 14-point drop from 2025, according to the survey.

Buyers are also drawing firmer lines around where and how AI can be used:

• 68% say clear AI labeling for property listings and mortgage recommendations is important or essential
• 37% say such labeling should be mandatory, rising to 61% among baby boomers
• 46% say it is unacceptable for lenders or insurers to conduct automated AI valuations without prior approval

Tolerance for AI mistakes remains low. Only 22% of Gen Z and 19% of millennials say they are tolerant of AI errors, compared to 11% of Gen X and 9% of boomers. For lending and real estate firms, that suggests limited consumer patience for misfires from AI-driven underwriting, valuation or recommendation systems.

Demand grows for transparency and human checks

Concerns about how AI uses data are also widespread. Nearly two-thirds (64%) of buyers worry that AI may recycle unverified information rather than rely on validated, first-party data.

Generational differences emerge in willingness to act on AI outputs:

• Only 7% of global Gen Z homebuyers would accept AI-generated information on property risk and its impact on insurance premiums
• 12% of millennials say they would accept and act on such AI-generated safety information
• 11% of U.S. buyers and 10% of U.K. buyers say they are comfortable with AI-generated information, compared with 3% in Canada

Despite growing familiarity with digital tools, human expertise still carries more weight at critical decision points. Globally, 48% of buyers consider AI reliable for making fair lending decisions, but U.S. consumers increasingly favor humans:

• 55% of U.S. buyers prefer working with a person to secure a mortgage, up from 46% last year
• 66% would rely on human professionals over AI for legal assistance, up from 54% in 2025
• 56% say they would trust a human expert over AI when assessing natural disaster risk

Buyers are willing to pay for these safeguards. Cotality found that 44% of respondents would pay an additional fee to have a human expert verify AI-generated housing decisions.

“Buyers are not rejecting AI; they are asking for safeguards,” Gromowski said. “They recognize AI’s power to process massive datasets and speed up decisions. But when it comes to the largest financial transaction of their lives, accuracy and accountability are non-negotiable.”

This article was generated using HousingWire Automation and reviewed by a HousingWire editor before publication. The system helps convert company announcements and industry data into HousingWire-style news coverage.