‘It’s called StreetEasy, not StreetHard’: Mamdani cracks down on scourge of ‘housefishing’ and ‘real estate slop’

The real estate landscape has long been plagued by creative staging and photo manipulation. But with the advent of generative AI, this practice has evolved into a sophisticated form of deception. Renters are signing leases based on manipulated photos, only to find themselves stuck with subpar living conditions.

New York City Mayor Zohran Mamdani’s proposal to require landlords and listing platforms to disclose AI-generated or digitally altered rental photos is a step towards transparency in the online housing market. However, it goes beyond simply labeling images as “AI-created” or “virtually staged.” It acknowledges that these tools have become ubiquitous, making their use no longer just a matter of minor cosmetic tweaks.

The phenomenon has earned its own vocabulary: “housefishing,” where photos are manipulated to make properties look more desirable. The Guardian and Business Insider have documented cases of repainted walls, imaginary lawns, and unnaturally smooth surfaces – all giveaways of digital manipulation. AI-generated listing images are now faster to produce, harder to spot, and more widespread.

Renters relocating from out-of-town who sign a lease sight unseen can be particularly vulnerable. They might sign a year-long lease, only to arrive and find themselves on the hook for staying in a place that was not what they signed up for. According to Justin Brookman, director of Technology Policy at Consumer Reports, AI has made it increasingly possible to create photorealistic images that misrepresent properties.

The proposal by the city’s Rental Ripoff Report includes tenant-protection initiatives, including the requirement for landlords and listing platforms to disclose AI-generated or digitally altered rental photos. This is not just about policing the online marketplace; it’s also about acknowledging how AI has changed the nature of real estate listings.

Zillow’s support for clearer disclosure requirements is a welcome step, but it’s also a nod to the company’s own vulnerabilities. Even if Zillow requires listing photos to accurately represent homes, the onus falls on renters to spot the difference between original and manipulated images. What about cases where AI-generated listing images are created without clear labels or disclaimers?

This proposal follows similar efforts in other states, including California’s law requiring disclosure when real estate listing images have been materially altered using AI or digital tools. New Jersey lawmakers are also considering legislation that would regulate the deceptive use of AI-generated and heavily altered property listing images.

As we navigate this new landscape, it’s essential to recognize that transparency is not just about labeling AI-generated images; it’s about creating a culture where renters feel empowered to question what they’re seeing online. According to Brookman, “In the spirit of transparency, people should know what they’re getting into.” At the very least, having an indicator that photos were virtually staged or edited can provide basic guardrails.

The New York City mayor’s proposal is not just a response to AI-generated listing images; it’s also a recognition of the broader push by lawmakers to ensure AI tools do not mislead consumers making one of the biggest financial decisions of their lives. If adopted, the regulation would join other jurisdictions regulating how AI is used in real estate listings – a trend that reflects a growing awareness of AI’s impact on consumer trust.

The consequences of failing to prioritize transparency and accountability in the online housing market are too great: renters losing money, time, and confidence in the system. It’s time for a reality check – one that acknowledges the power of AI-generated listing images and demands clearer disclosure requirements. Anything less would be a betrayal of the trust that’s already been lost.