AI-edited listing photos: 9 in 10 go undisclosed, and the rules are catching up
A study of almost 40,000 US listing photos found that about 11% were digitally altered, mostly without a word to buyers. California now requires disclosure, and New York City wants to follow.
A blue sky that was grey on the day of the shoot. A sofa that was never in the room. A satellite dish that vanished from the roof. AI makes these edits take seconds, and buyers often cannot tell.
In 2026, two things happened in the United States. Researchers measured how common these edits are, and lawmakers started to require that they be disclosed. Inman’s roundup of 30 September 2026 brought the debate back to the front page. Here are the facts, and what they mean for agencies in Morocco and the Arab world.
What the study found
The real estate data company Coraly analysed just under 40,000 primary listing photos on Zillow, Redfin, Realtor.com and Homes.com during the first quarter of 2026, as reported by HousingWire. Images were checked for signs of digital manipulation, from sky replacement to virtual staging and object removal.
- 10.8% of the images (4,330) showed alteration.
- In more than 90% of altered images, there was no visible disclosure: not on the image, not in the caption, not in the description.
- Sky replacement was the most common edit, in 69% of altered images. Virtual staging came next, at 10%.
- 66 images had items such as satellite dishes or utility meters removed, and 218 appeared to be computer renders presented as photos.
- Exteriors were altered far more often than interiors: 13.1% against 4.5%.
Rates were similar across portals, from 8.7% on Realtor.com to 12.4% on Homes.com. The researchers caution that these gaps may reflect the mix of listings rather than portal policy.
Their most useful conclusion is about process, not morals. The gap is “not a will problem, but a workflow problem”: photographers deliver edited files with no record of what was changed, so agents often cannot disclose even when they want to.
Not all edits are equal
The report makes a fair distinction. A replaced sky and a hidden defect do not carry the same risk. Brightening a dark photo helps buyers see a room. Removing a crack, a pylon or a neighbour’s wall changes what they think they are buying. Virtual staging sits in between: useful to show potential, misleading if presented as the real state of the home.
What California requires
California’s law AB 723 took effect on 1 January 2026. According to HousingWire, it requires licensed brokers and salespeople to disclose digitally altered images conspicuously and to give access to the original, unaltered versions. It applies to licensees, not to the portals that display listings.
The California Regional MLS (CRMLS), which adopted a matching rule, explains the practice: the original image must be included alongside the altered one, and each altered image must be labelled with terms such as “digitally altered” or “virtually staged”. Minor adjustments, such as brightness or colour correction, are excluded.
New York City wants to go further
On 16 July 2026, New York City Mayor Zohran Mamdani proposed that landlords, brokers and online listing platforms disclose when rental photos or videos were created or altered with AI or other digital tools, Fortune reported. It is still a proposal, part of a package of 23 tenant-protection measures. New Jersey lawmakers are considering similar rules, and Zillow said it supports clear disclosure when AI materially alters a listing image.
A simple policy any agency can adopt today
You do not need to wait for a law. Trust is the asset, and a buyer who feels deceived at the visit is lost. A clear internal rule takes an afternoon to write:
- Allowed without label: exposure, colour balance, straightening, cropping.
- Allowed with label: virtual staging, sky replacement, digital decluttering. Write “virtually staged” or “edited image” on the photo and in the text.
- Never: removing permanent features (cracks, pylons, walls, view obstructions) or showing renders as photos of a finished home.
- Keep the originals and send them on request.
- Prefer real media: a short video tour shot on a phone shows the light, the noise and the street as they are.
That last point is why Quick Agent sends real video and 3D visits to interested clients, instead of polished images alone. Honest media saves wasted visits for everyone.
Sources
- HousingWire – Most AI-altered listings go undisclosed; California law bans it (24 June 2026)
- Inman – Tech roundup: AI listing photos (30 September 2026)
- CRMLS – California’s altered image law (AB 723): FAQs
- Fortune – Mamdani proposal on AI-altered rental listing disclosures (22 July 2026)
- Challenge – Publicités mensongères en ligne : quelle protection pour les consommateurs ? (2 June 2025, in French)
- Abu Dhabi Media Office – Abu Dhabi Real Estate Centre introduces Madhmoun (27 March 2025)
Independent article by kawnium Lab, written from the public sources listed above and checked on the date shown. kawnium makes Quick Agent, which is mentioned here. This article contains no affiliate links. Read our affiliate disclosure and editorial policy.
