AI adoption by homeowners is growing, but trust is becoming harder to earn. According to the AI in Housing 2026 Report by Cotality, a US-based information services provider for the real estate industry, consumers have assumed that Artificial Intelligence (AI) is already embedded in the homebuying process, but at the same time they increasingly value the human element.
With more than $2 trillion in mortgage originations each year in the United States, even modest efficiency improvements could have significant implications for lenders and homebuyers alike. Cotality finds AI-driven workflows could shorten mortgage processing times by one to three months, helping buyers move into homes faster while enabling lenders to recycle capital more efficiently and increase capacity.
At least three-quarters of homebuyers assume AI is already integrated into the housing ecosystem. They expect AI in property websites (86 percent), insurers (82 percent) and lenders (80 percent), with agents (80 percent) and brokers (79 percent) close behind.
About 70 percent of these homeowners are Baby Boomers, 84 percent are Millennials, and 81 percent are Gen Z.
US buyer confidence in navigating the homebuying process has fallen from 83 percent in 2025 to 72 percent today, while the share actively saving for a home has declined from 75 percent to 69 percent.
Younger buyers are more likely to see AI as part of the solution: 50 percent of Gen Z say it would increase their confidence in buying a home, compared with 40 percent of Millennials, 33 percent of Gen X, and 21 percent of Baby Boomers. Gen Z buyers also report a greater need for speed, particularly when securing legal assistance (46 percent) and insurance (39 percent).
In the US, 37 percent of originated loans are attributed to buyers under 35, highlighting the growing influence of younger buyers — and the need for faster AI-enabled experiences to match their expectations.
“Homebuyers want the speed and scale of AI — but not at the expense of certainty,” Cotality Head of Data Science Amy Gromowski said. “With AI adoption accelerating the homebuying process across the United States, over 7 million mortgages are originated annually, representing several trillion dollars in combined lending volume each year. If AI-powered workflows shorten time to close by just one to three months, lenders can pull forward billions in repayments, recycle capital more efficiently, and expand capacity without increasing headcount.”
Safeguards needed
While nearly half (48 percent) of buyers globally consider AI reliable for making fair lending decisions, preference for working with human professionals has risen across every major task in the US. About 55 percent of US buyers would prefer working with a person to secure a mortgage, compared with 46 percent last year. Two-thirds (66 percent) would rely on human professionals over AI for legal assistance (up from 54 percent in 2025), while 56 percent say they would trust a human expert’s guidance over AI when assessing natural disaster risk.
Although buyers are open to digital simulations to understand climate risk, they still want a human “safety net” when acting on that information. About 44 percent of respondents say they would pay an additional fee to have a human expert verify AI-generated housing decisions.
“Buyers are not rejecting AI; they are asking for safeguards,” said Gromowski. “They recognize AI’s power to process massive datasets and speed up decisions. But when it comes to the largest financial transaction of their lives, accuracy and accountability are non-negotiable.”
In the US, trust in AI to help find a home has fallen by 14 percentage points from 30 percent in 2025 to 16 percent in 2026. Buyers also want greater control over how AI is used. Nearly half (46 percent) say it is unacceptable for lenders or insurers to conduct automated AI valuations without prior approval. Tolerance for AI mistakes is notably low — just 22 percent of Gen Z and 19 percent of Millennials say they are tolerant of AI errors, compared with 11 percent of Gen X and 9 percent of Baby Boomers.
AI-driven financial processes are also triggering stability concerns, with 64 percent of buyers concerned that AI may "recycle" unverified information rather than use validated, first-party data.
That desire for transparency is reflected in each generation's willingness to accept its outputs. Only 7 percent of global Gen Z homebuyers would accept AI-generated information on property risk and its subsequent effects on premiums. Millennials have a higher tolerance, with 12 percent willing to accept and act upon AI-generated information about their home's safety. US and UK buyers appear most willing to adopt AI-generated information, with 11 percent and 10 percent of buyers saying they are comfortable, compared to 3 percent in Canada.
Source: Business Wire
