Gen Z homebuyers use AI for research, but still want agents at closing

Gen Z home shoppers are turning to artificial intelligence before they tour properties or sign paperwork, according to a Bank of America Institute study. The finding points to a shift in how younger buyers begin one of the largest financial decisions they may make.

The institute found that about one-third of Gen Z respondents had used AI tools in the previous 12 months to research buying a home. Bank of America said common uses included learning how the buying process works and looking into neighborhoods or property values.

AI is becoming an early-stage research tool

Graham Paterson, chief executive of the U.K.-based real estate search company Jitty, told Fortune that younger buyers are more willing than older groups to ask AI for help because many are unfamiliar with homebuying and less inclined to rely first on traditional experts.

Jitty uses AI to match buyers with homes based on detailed requirements or broader requests, such as a property with a large garden and sea views, according to Fortune. Paterson said the company, which he started just over two years ago, has grown 30% to 80% month over month and recently passed 3 million website visitors.

Paterson told Fortune that many Jitty users are Gen Z or younger millennials. He said younger users tend to see AI-powered search as a natural improvement, while older users more often ask whether the technology misses listings or makes mistakes.

The pattern fits broader AI adoption among young adults. Fortune cited an April Gallup survey finding that just over half of Gen Z uses AI at least weekly, and reported that younger consumers are also more likely than older generations to use AI for areas such as therapy, medical information and financial or investment decisions.

Paterson told Fortune that younger buyers have grown used to personalized digital products. He pointed to algorithm-driven services such as TikTok and Spotify as examples of tools that shape recommendations around individual preferences.

Human help still matters near the finish line

AI use has limits in real estate, according to the Bank of America Institute findings cited by Fortune. More than half of prospective homebuyers said they would rather rely on a person for tours and for legal or contractual guidance.

The closing process often requires coordination among real estate agents, attorneys, inspectors, loan officers and insurance brokers, Fortune reported. That work can make buyers less comfortable leaving the transaction to software alone.

Jessica Li, a real estate agent with Atlanta Fine Homes Sotheby’s International Realty, told Fortune that AI can help keep clients informed during closing, but she said human agents remain necessary. Li said a skilled buyer’s agent can affect whether a buyer wins concessions worth thousands of dollars or pays the full asking price.

Li also told Fortune that inspectors, appraisers and banks still require person-to-person work. Her view reflects the split shown in the Bank of America Institute study: Gen Z may be comfortable using AI to gather information, but many buyers still want human support when money, contracts and inspections are on the line.

This story draws on original reporting from Fortune.