Real Estate Reimagined: 8 Real-World AI Innovations Making an Impact

The integration of artificial intelligence (AI) in the real estate sector marks a profound transformation in how the multifamily industry manages, markets, and interacts with properties and residents. Far from the confines of abstract tech discussions, AI is now deeply entrenched in real-world, practical applications that are reshaping the business of real estate. From enhancing property valuation accuracy to streamlining complex transaction processes, the influence of AI applications is evident across a broad spectrum of real estate functions.

When considering what applications to implement, start by taking a look at what problem your company or team is looking to solve. While the full potential of AI is far from being fully realized for real estate applications, the following are eight applications that are today helping set new standards for the market.

1. Property valuation and price estimation:

Using data models and algorithms to analyze volumes of data and provide estimated property values is common in the residential real estate market, where preferences win out over strict cash flow analysis. This technology is used to great effect by online real estate platforms such as Zillow, which offers what it calls “Zestimates”.[1] These Zestimates represent an estimated market value for a property, calculated using a proprietary algorithm that takes into account a number of factors, including previous sales in the market, property listings on the market, and property attributes such as age, size, and bedroom and bathroom count, as well as features like a pool, views, and location. The valuation ranges serve as a useful tool for anyone looking to buy, sell, or rent property and want to have an idea of values in a particular market. Similarly, there are companies like PriceHubble that offer AI-powered property valuation solutions, and Bowery Valuations, that are powering the next generation of appraisals.[3] These companies leverage the power of machine learning and artificial intelligence to offer property valuation services that can make the property buying and selling process more transparent and efficient.

2. Personalized property recommendations:

AI technology also supports a number of recommendation engines for buyers of real estate. Platforms like Trulia and Redfin use machine learning models to provide personalized property recommendations to buyers based on their stated preferences and interests.[1][2][4] This approach ensures that buyers are only presented with properties that are likely to be of interest to them, thereby saving them time and effort in their property search.[1][2] In the for-rent space, Apartment List provides an AI-powered rental matchmaker quiz that connects qualified renters with properties matching their preferences.[5] Their AI leasing assistant nurtures leads 24/7, and their cross-selling feature introduces renters to vacancies across a property portfolio aligned with their preferences. Rently has an iQual Plus service that instantly informs renters which properties they qualify for and matches them to suitable listings based on their criteria.[6]

3. Virtual tours and 3D modeling:

AI technologies can be used to create immersive virtual tours and 3D models of properties, allowing potential buyers and renters to explore spaces remotely. Companies like Matterport specialize in this technology for home sales, while startups like Peek, Rently, and Tour24 are providing virtual tours in the multifamily space.[6][7][8] Virtual tour companies use technology that allows potential buyers to explore and experience spaces remotely, offering a convenient and efficient alternative to traditional property viewings. This not only saves time but also broadens the reach of property listings to a wider audience.

4. Lead Generation and Nurturing:

AI applications significantly enhance real estate and leasing agents’ abilities to identify and nurture high-quality leads. By employing predictive analytics, professionals can effectively analyze data to identify prospective clients who are ready to engage in transactions.[3] AI technologies further support the nurturing process by enabling personalized communication tailored to prospects’ preferences, behaviors, and interactions on agents’ digital platforms. This targeted approach not only improves relationship building but also boosts conversion rates. Additionally, AI can leverage market trends, personal circumstances, and historical transaction data to predict prospects’ likely actions, allowing agents to proactively engage at optimal times and increase the likelihood of transaction completion.[3]

5. Document Processing Automation:

AI solutions can be used to help automate the extraction of key data points from documents. Indico Data uses the technology on leases and contracts to streamline the real estate transaction workflow.[2][9] Revolution RE uses a machine learning model to automate the mapping of property financial statements from various accounting software systems.[9] This process enables ownership groups with various managers or accounting systems to aggregating their property financials for fund level accounting and comparative analysis. With the help of artificial intelligence (AI) solutions, the process of extracting and standardizing crucial data points from various documents and systems can be fully automated. The automation process reduces the time spent on manual data extraction and improves accuracy, so businesses can focus on strategic tasks that increase efficiency and productivity.[2]

6. Smart home devices:

Most people are familiar by now with the use of AI technologies to power smart home devices, like smart locks, package delivery, thermostats, voice assistants, and cameras. In the commercial real estate space, managers and renters can remotely monitor and manage properties, resulting in rental premiums.[10] Solutions like Latch and OpenVia offer apartment complexes keyless entry with mobile access controls. These advancements not only enhance security but also increase energy efficiency and on-site security and provide residents with low cost amenities that improve the quality of their home.[6][11]

7. Conversational AI and Chatbot Assistance:

In the past, chatbots were used on websites by companies to answer limited service or sales related questions. Today’s conversational AI platforms, like OpenAI’s ChatGPT, Google’s Gemini (formerly Bard) and Microsofts Copilot, have taken it to another level with their ability to expand the depth and scope of communication. The multifamily industry has EliseAI, an AI assistant to help renters engage with property managers to gain real time access to unit availability,[12] and Adam, by Travtus, offering management companies smart processes for renewal reminders, move-out scheduling, and sentiment analysis.[13] Adding automation to resident and manager interactions enhances the housing experience for the renters while streamlining many tasks required of on-site property managers.[13]

8. Site Selection and Planning:

AI solutions can be used to analyze demographic data, foot traffic, and economic trends to help developers identify optimal locations for new projects. Tools like Autodesk Forma (formerly Spacemaker) can assist with site selection and planning.[2][3] Developers can use data to ensure developers are choosing strategic locations and offering the appropriate amenities to yield the highest return on investment. [1][2][4][5]

These eight uses of AI technologies are by no means exhaustive as the industry is truly in the earliest stages of adoption. AI applications’ versatility and power are already having an immediate and definitive impact. With each technological advancement, AI applications continue to enhance the efficiency, accuracy, and convenience of real estate operations, promising a future where digital transformation drives greater value for investors, property managers, and consumers alike. Embracing AI technology not only helps keep real estate professionals ahead in a competitive market but also ensures a more responsive and informed approach to property management and sales.

Moreover, AI’s role in real estate extends beyond sales and property management. It also has the potential to transform future market activity by identifying trends. By analyzing a vast amount of data, AI can help developers identify optimal locations for new projects and operators know when a market shift is about to occur.

Many predictive AI applications have yet to live up to the same potential in real estate as in other industries. Using AI models to forecast market trends to devise effective strategies and make timely business decisions, have been hindered by poor data quality and lack of ubiquitous access to core datasets sufficient in volume to power large language models. As awareness of data issues continue to grow, the industry will push for greater solutions with technologies stepping in to assist.

AI’s impact on the real estate industry is already happening at a rapid speed for the traditionally slow moving sector, and this evolution will continue as new technologies arrive to chip away at the current barriers to market entry. With these obstacles removed, progress should be swift and the impact extraordinary.

Sources

[1] How AI in Real Estate is Catalyzing a Paradigm Shift — 10 Use Cases and Examples

[2] Real Estate AI (10 Potential Use Cases)

[3] How Artificial Intelligence Is Changing the Real Estate Market

[4] https://www.pricehubble.com/en/; https://www.boweryvaluation.com/

[5] https://portal.apartmentlist.com/listwithus

[6] https://use.rently.com/for-renters/

[7] Artificial Intelligence in Real Estate — National Association of REALTORS®

[8] https://www.peek.us/; https://www.tour24.io/

[9] AI in Real Estate: 22 Companies Defining the Industry

[10] https://indicodata.ai/; https://revolutionre.com/

[11]www.latch.com; https://www.openvia.com/