Most Americans believe owning a home is still a vital part of the American dream, but about three-quarters agree that homeownership is not affordable for the average American, according to a recent study from Clever Real Estate.
As home shoppers contend with housing affordability, rising prices, and economic uncertainty, it’s not surprising to see advances in artificial intelligence reshape how consumers buy and maintain their most valuable asset.
Artificial intelligence takes several forms, including predictive analytics that help real estate professionals forecast markets and home values, as well as generative and visual AI that can recommend home maintenance tasks and improvements.
Here are a few ways AI is changing the future of homeownership.
How Homeowners Can Use AI
Many homeowners have used smart-home technology — such as voice assistants, doorbell-activated security cameras, and apps to regulate lighting and thermostats — for years. Other homeowners use a comprehensive digital platform to manage everything from regular maintenance reminders to remodeling projects.
AI-enhanced integrations are taking smart technologies, apps, and management platforms to the next level, offering homeowners more customization and intuitive experiences.
Personalized Automation
Smart tech enhanced with AI capabilities can analyze behavior patterns, energy usage, and other user preferences to anticipate homeowners’ needs and manage their lighting, entertainment, audio, and temperature-control systems.
Advanced Surveillance
Visual AI can analyze security video for enhanced surveillance as it senses and recognizes vehicles or people. It can also identify unusual movement or behavior and alert authorities.
Weather-Responsive Outdoor Management
Other smart-home apps use AI to collect weather information and predict patterns, discerning when to turn on a sprinkler system. In cases of severe weather, AI-enhanced apps use video or photos of a homeowner’s property to indicate which areas are most vulnerable to potential storm damage and provide ways to prevent it.
Home Improvement Planning and Maintenance
Homeowners can use AI to determine which improvement projects will generate the biggest return on investment. They can get a precise, 360-degree evaluation of their proposed projects using predictive analytics and visual AI that analyzes photos and video of a property’s interior and exterior, its geographic location, area comps, current design trends, and construction costs. This deep analysis provides valuable information for homeowners and real estate investors looking for their next project.
AI-integrated homeowner apps take routine maintenance well beyond a calendar reminder. AI can proactively suggest repairs, advise when appliances need repair or servicing, and identify cracks in a foundation or leaks in the roof. It can also target energy inefficiencies and recommend projects based on real-time assessments.
Household Management
Above all, homeowner AI is fluid and dynamic, using a continuous stream of real-time information to provide the most up-to-date data tailored to individual homeowners and their needs — whether it’s creating operating budgets, identifying potential problems, or assisting in the efficient running of a household.
How AI Is Changing Home Buying and Selling
Artificial intelligence is helping agents, buyers, and sellers become more efficient, productive, and effective when it comes to real estate. AI capabilities that use sophisticated algorithms and analyze decades of historical data are used to predict any number of factors, including the best time to buy or sell, which neighborhoods to consider, and which lenders are likely to approve a mortgage application based on a buyer’s financial snapshot.
Smarter Property Searches
If you’re buying or selling a home, look for agents who use AI to incorporate demographic details and analyze customer preferences and past behaviors to streamline property searches and recommend specific geographic areas that align with customers’ needs.
Market Timing and Forecasting
Agents should also support their market forecasts with data-driven AI predictions, estimating more precisely when a buyer’s market could become a seller’s market and the best time for clients to list or start shopping. Likewise, homeowners looking to avoid the open market and sell their homes for cash can get an accurate preview of market conditions to calculate the best time to sell.
Home Value and Property Tax Assessment
AI is commonly incorporated into the home appraisal and valuation process, with ripple effects in the areas of mortgage lending and property tax assessment.
For decades, home values have been determined using automated valuation models and statistics, but AI advancements are improving appraisal and valuation accuracy by using larger data sources and machine learning. Traditional in-person appraisal methods are often used in tandem with AI-enhanced data, providing a more rounded picture of a home’s true value for home appraisers, as well as lenders estimating loan-to-value ratios before providing mortgage quotes.
Local governing bodies are using AI assistance to harness and analyze more home data, resulting in more accurate valuations and more accurate tax bills.
As homeowners become more familiar with the latest evolution of AI and its everyday uses, the opportunities for enhancing the homeowner experience are endless. From efficient project planning to customized home maintenance and accurate market forecasts, AI innovations will continue to help homeowners protect their most valuable asset.
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