In a recently published report by Veterans United Home Loans, approximately one-in-three (32%) of prospective homebuyers are using artificial intelligence (AI) tools as part of their homebuying journey. The nationwide survey of nearly 900 prospective buyers found that searching for and virtually touring homes are the two most common uses of AI.
The survey also revealed that 40% of prospective buyers interact with AI once a day or more. However, they were split on how comfortable they are with this technology becoming a part of everyday life, with 31% more concerned than excited, 29% more excited than concerned and 28% equally excited and concerned.
The report found that tools like ChatGPT, Meta AI, and Zillow’s natural language home search are some of the most commonly used platforms—offering prospective buyers insights, calculations, and options that previously required extensive time and effort.
“With digital assistants and smart home devices gaining broader adoption in everyday life, AI tools are becoming a valuable resource for home shoppers,” said Chris Birk, VP of Mortgage Insight at Veterans United. “However, some buyers need balance–leveraging AI as a helpful tool, while maintaining the human touch to guide and reassure buyers through life’s biggest investments.”
Today, most home shoppers begin their home search online. The survey showed that nearly 40% of buyers are using AI to both find and view homes. At 38%, searching for homes for sale in the location they want to live ranked as the most common way home shoppers used AI. This was followed closely by virtual home tours, which were used by 37% of those who reported using AI tools.
AI as an Educational Tool
About one-third of buyers who use AI tools (32%) use them to estimate monthly payments or to check property values. About the same percentage (31%) use AI as a mortgage calculator to determine how much they could afford or be preapproved for; for tips and tricks to make homebuying easier; and to learn about the latest housing trends.
Nearly three-in-10 use AI to input specific criteria they are looking for in a home to find available homes (29%), and to shop for the best mortgage rates (28%).
The survey also found that 27% of respondents used AI to visualize potential renovations or changes to a home. Popular applications include search engines that generate AI-powered summaries (43%), digital assistants like Alexa or Siri (38%), and smart home devices such as thermostats or security cameras (30%).
Users of AI
The Veterans United survey revealed that younger home shoppers are more likely to use AI than their older counterparts, which suggests this emerging technology could play an even larger role in the process as younger generations reach homebuying age.
Among those who use AI once a day or more, 60% are from Generation Z, and 47% are millennials. More than one-third of Gen X (36%) and 18% of baby boomers reported using AI once a day or more.
Click here for more on the report by Veterans United Home Loans on the use of AI in home shopping.
