For Generation Z, artificial intelligence (AI) has become the first stop for navigating many of life’s biggest decisions, including buying a home. Rather than replacing real estate professionals, however, AI is increasingly serving as a powerful educational tool that prepares buyers before they ever contact an agent.
That shift is already measurable. According to the National Association of Realtors (NAR), citing Bank of America’s Homebuyer Insights Report, 32% of Gen Z prospective buyers have used AI tools during their homebuying journey, compared with 20% of buyers overall. AI is helping consumers compare neighborhoods, estimate ownership costs, understand financing terminology and organize information long before they begin touring properties.
For my daughter Devyn Kern, a New York City real estate advisor with the Kantha Team at Serhant, the distinction is important.
“AI is not replacing agents,” she observed. “It is changing how buyers prepare before they ever contact one.”
Today’s buyers often arrive with a stronger understanding of mortgages, monthly carrying costs and neighborhood comparisons than previous generations. AI allows them to ask unlimited questions privately and build confidence before making one of the largest financial decisions of their lives.
Many first-time buyers hesitate to contact an agent because they worry they are not knowledgeable enough or fear asking what they believe are basic questions, Devyn said. AI removes much of that anxiety by allowing buyers to educate themselves privately and at their own pace. Instead of replacing the real estate professional, it often prepares buyers to have far more productive conversations once they do engage one.
“AI gives young buyers something they often lack during the earliest stages of homeownership: confidence,” Devyn said.
Generation Z remains a relatively small share of today’s buyers, representing roughly 4% of all purchasers nationally, yet the group is rapidly growing. Nearly 62% are first-time buyers, 53% purchase on their own and 35% are single women, the highest percentage of any generation, NAR said. Freddie Mac projects Millennials and the oldest members of Gen Z will continue driving first-time homebuyer demand for years.
AI excels during the research phase. It can explain financing concepts, estimate payments, compare neighborhoods, summarize listings and narrow thousands of homes into realistic options within minutes. Housing analytics firm Cotality also reports that 81% of Gen Z buyers expect AI to be integrated throughout the homebuying process, while half say the technology increases their confidence.
That is precisely where AI delivers value, Devyn noted. Rather than beginning the process overwhelmed by thousands of listings and unfamiliar terminology, buyers can use AI to organize information into something far more manageable. They can compare neighborhoods based on lifestyle preferences, estimate monthly ownership costs beyond the mortgage payment, model renovation expenses, understand financing terminology, identify questions they should ask lenders and narrow an enormous inventory of properties into a realistic shortlist before ever scheduling a showing.
Yet confidence is not the same as experience. According to Devyn, “Residential real estate remains one of the most nuanced, hyperlocal asset classes in the economy. Markets can change dramatically within a matter of blocks.”
That observation is especially true in New York City, where neighborhood dynamics, co-op boards, condominium finances, building management and future development plans can significantly influence long-term value. AI can summarize available information, but it cannot observe local conditions or interpret years of market behavior.
As Devyn explained, AI can analyze listing information and historical sales, but it cannot walk a neighborhood on a Tuesday afternoon and compare it with a Saturday evening. It cannot recognize that one side of a particular street consistently commands a premium because of sunlight, views, traffic patterns or future development plans. It cannot anticipate how a specific condominium board evaluates buyers, understand the unwritten dynamics of a co-op interview or recognize subtle indicators that a property may present resale challenges years later.
Those judgments, Devyn said, are not merely data-driven. They are built through sustained market immersion, thousands of property tours, countless negotiations and years of observing how buyers actually behave. This distinction becomes even more important once buyers move beyond the search phase.
Devyn pointed out that the most consequential decisions in a transaction rarely involve finding the property. They involve deciding what that property is actually worth to a specific buyer.
Negotiation strategy, seller motivation, inspection findings, resale potential and hidden risks all require judgment developed through experience. According to NAR, 88% of buyers and 91% of sellers still rely on licensed real estate professionals to complete their transactions.
AI is helping level the playing field, Devyn said, but perhaps not in the way many people assume. It is reducing the information gap that has traditionally existed between first-time buyers and experienced participants in the housing market.
Young buyers who may not have parents with real estate experience or extensive professional networks can now access explanations, financial modeling and educational resources that previously required significant research or personal connections.
Artificial intelligence is also reshaping the industry behind the scenes. The Urban Institute notes that AI is increasingly being used in mortgage underwriting, fraud detection, property valuation and operational workflows. Meanwhile, Realtor.com research shows consumers continue to value experienced agents even as AI adoption accelerates.
“What AI cannot level is the experience gap,” Devyn added. “Experience is what allows an advisor to recognize that the ‘perfect’ listing may actually carry hidden financial risk.”
Rather than competing with experienced advisors, AI is making them more effective by allowing buyers to arrive better informed and conversations to become more strategic. Technology can accelerate research and reduce complexity. Local professionals provide the context, negotiation skills and judgment that algorithms cannot replicate.
As Devyn sees it, technology excels at accelerating research, organizing information and increasing transparency. Experienced advisors excel at interpreting ambiguity, navigating human behavior, identifying opportunity and managing risk when decisions become irreversible.
For Generation Z, the future of homebuying is unlikely to be defined by AI versus human expertise. Instead, it will belong to buyers who know how to leverage both.
AI may help identify a home worth considering. An experienced local advisor helps ensure it is the right investment, purchased under the right terms and positioned to meet the buyer’s long-term goals.
Entrepreneur Leadership Network member Merilee Kern is an internationally regarded brand strategist and analyst who reports on cultural shifts and trends as well as noteworthy industry change makers, movers, shakers and innovators across all categories, both B2C and B2B.
