NYC Mayor Proposes AI Disclosure for Rental Listings

New York City Mayor Zohran Mamdani proposed new regulations on July 16 that would require landlords, brokers, and online listing platforms to disclose when rental listing photos or videos have been created or digitally altered using AI. This initiative aims to address the growing problem of "housefishing," where AI is used to create misleading or unrealistic depictions of properties.

Mamdani announced the proposal at Manhattan's Tenement Museum, stating that renters should not have to question the authenticity of the apartments they view online. The proposal is part of the city's "Rental Ripoff Report," which includes 23 tenant-protection initiatives. These initiatives were developed after officials collected testimony from over 2,400 renters during "Rental Ripoff Hearings" held across the city earlier this year.

The rise of generative AI has made it easier and faster to produce convincing real estate images, leading to concerns about transparency in online housing marketplaces. The phenomenon, dubbed "housefishing," has been documented by publications like The Guardian and Business Insider, which have reported on complaints of altered walls, imaginary lawns, and unnaturally smooth surfaces indicative of digital manipulation. The Atlantic has referred to this as "AI real-estate slop."

Evidence supporting the need for these regulations includes a Coraly analysis of approximately 40,000 listing photos across major platforms like Zillow, Redfin, Realtor.com, and Homes.com, which found that nearly 11% showed signs of AI alteration. Additionally, New York's Department of State issued a trend alert warning homebuyers about "distorted or inconsistent details" such as blurry backgrounds and mismatched window views in listings.