AI & Homebuying: Consumers Weigh in on the Growing Trend

A new LendingTree survey conducted with U.S. consumers reveals that while a majority would utilize AI for at least one task during the process, they still prefer human involvement when the stakes are at their highest. Concurrently, a notable portion of buyers expresses willingness to consider homes constructed using alternative technology—specifically 3D printing—although significant reservations persist in this area as well. While AI is rapidly integrating into the homebuying process, the trend does not imply that Americans are prepared to relinquish complete control.

Overall, 72% of Americans are inclined to use AI for at least one task related to buying or selling a home. When queried about the specific tasks they would delegate to AI, an estimated 35% indicated they would use it for searching for homes within their financial means—the most prevalent response. This is followed by 28% who would use it to estimate their home’s value and 24% who would seek assistance with down payment programs. Nevertheless, some 28% of respondents stated they would not consider employing AI for any housing-related tasks.

Matt Schulz, Chief Consumer Finance Analyst at LendingTree, asserts that the primary advantage of AI for homebuyers lies in its ability to facilitate quicker organization.

“It can help them find homes in their budget, understand different types of mortgages and find down payment assistance programs, among other things,” Schulz says. “Those are time-consuming, information-heavy tasks where AI can help people ask better questions and narrow their options. AI should be a starting point, not the final word. A mortgage or real estate professional can help explain trade-offs, local market realities, loan rules and risks that a chatbot or online tool may miss.”

What Technologies & Tools Are American Homebuyers Using?

In reviewing technology utilization over the previous year, it is evident that online home search platforms and applications are the predominant housing technology, with 34% of Americans reporting their use in the last 12 months.

Artificial intelligence tools rank next at 15%, which is equivalent to the usage of real estate agent websites and applications (15%) and surpasses that of virtual home tours (14%), online affordability calculators (13%), and smart home technologies such as locks, thermostats, or security cameras (13%). The subsequent technologies include:

• Online mortgage calculators (12%)
• Mortgage rate comparison sites (10%)
• Online mortgage prequalification or refinance tools (7%)
• Online mortgage applications (5%)

At the same time, some 35% report that they have not utilized any of these tools in the last 12 months.

For those who have employed AI for housing-related activities, the primary applications include researching or comparing neighborhoods (38%), searching for homes (35%), and estimating home values (33%). Additional frequent uses consist of:

• Summarizing listings (32%)
• Asking mortgage questions (30%)
• Estimating monthly payments (29%)
• Learning the homebuying process (26%)
• Generating questions for an agent (23%)
• Comparing lenders (21%)
• Creating a homebuying budget (19%)
• Reviewing contracts/documents (18%)
• Writing listing descriptions (13%)

A little over one-third (37%) of Americans indicate that they would entrust the process of purchasing a home to AI with minimal human involvement. In contrast, a slightly larger percentage—approximately 41%—express that they would not.

Looking ahead to the next decade, approximately the same proportion (36%) anticipates that AI will reduce the costs associated with buying or selling a home, and an equal number predict that AI will manage the majority of the homebuying and selling process by 2036. Nevertheless, 64% of individuals believe that AI will only perform certain tasks or have limited engagement by that time. Additionally, Schulz indicated that human involvement will always remain crucial to the overall process.

“AI will likely make the mortgage process faster, cheaper and less intimidating over the next decade,” Schulz said. “That’s a big deal because buying a home is overwhelming, even for people who have done it before. However, the human touch will always be important, especially when the stakes are highest, such as when you’re deciding what you can afford or negotiating to get the best terms possible.”

Utilizing AI vs. Human Interaction

When it comes time to determine an offer price, consumers tend to prefer human interaction over technological solutions. In terms of the most trusted sources for deciding on a home offer, a real estate agent (25%) and personal research (23%) are favored over AI as the primary resource.

The primary factor inhibiting greater trust in AI is the fear of receiving inaccurate or misleading information (22%). This is closely followed by concerns regarding data security (16%). Additional apprehensions include:

• It wouldn’t be clear who’s responsible if something goes wrong (11%)
• There wouldn’t be enough human judgment or oversight (11%)
• It could miss important details (10%)
• It could be biased or unfair (7%)
• It wouldn’t understand consumers’ unique situations (6%)

“The biggest risk is treating AI like an expert when it is more like a very useful assistant,” Schulz said. “It’ll make mistakes from time to time, and those can cost you money. Data security matters, too, because mortgage shopping involves some of the most sensitive financial information people have. The smart move is to use AI to gather ideas, compare options and prepare questions, then verify anything important with a lender, agent or other professional before making the final call.”

AI is not the sole technology making its way into the real estate sector: Nearly half (49%) of Americans believe that a 3D-printed home could be a viable option for them, provided it meets their criteria for location and price. In contrast, only a quarter (25%) would likely dismiss it altogether.

Looking to the future, over a third (36%) of individuals anticipate that this type of construction could lead to more affordable homeownership within the next 10 years. However, despite the growing acceptance of 3D-printed homes among buyers, securing financing for such properties may not be straightforward.

“The challenge is often less about the printer itself and more about proving that the home behaves like a traditional home from a lending and resale standpoint,” Schulz said. “If the paperwork is clean, the inspections are complete, the appraiser has good information and the local market understands the property, financing may be much more straightforward. If any of those pieces are missing, buyers could run into delays, extra questions or a tougher appraisal process.”

The primary concerns that Americans have regarding 3D-printed homes include durability (40%), construction quality (39%), adherence to building codes (31%), and resale value (29%). While a reduction in price can be beneficial, it has its limits. Slightly more than a quarter (26%) indicate that they would require at least a 20% price reduction to contemplate purchasing one, whereas 27% would consider a discount between 5% and 19%. An additional 7% would accept a minimal discount of 1% to 4%.

Interestingly, only 9% of respondents state that they would not need any discount to buy a 3D-printed home. In contrast, 30% express that they would not consider buying a 3D-printed home regardless of the discount offered. This skepticism aligns closely with how lenders assess the risks associated with 3D-printed homes.

“Concerns about durability, construction quality, code compliance and resale value matter so much because the home is the lender’s collateral,” Schulz said. “If the borrower stops making payments, the lender needs to know the property can be sold without major surprises. That’s harder to gauge with newer housing technologies when there may be fewer comparable sales, fewer long-term performance records and less familiarity among appraisers, insurers and local officials.”

Despite these concerns, Schulz stated, “that does not imply lenders will automatically reject 3D-printed homes,” although he adds, “it does mean the loan may face more questions.”

“The more you can do to answer those questions early in the process, the less likely you are to run into costly delays or surprises near closing,” he concluded.

Although technology has accelerated and simplified the home buying process for numerous Americans, analysts at LendingTree recommend that homebuyers discern when to utilize digital tools and when to depend on human expertise during their journey to homeownership.