About 32% of Gen Z homebuyers used AI tools in the past year to research the home-buying process, the Bank of America Institute found.That scenario is already unfolding for a growing number of young Americans approaching homeownership in a fundamentally different way from their parents. They are turning to artificial intelligence tools to figure out whether they can afford to buy a home at all.But the same buyers who trust algorithms with their early research are drawing a firm line when the financial and legal stakes get highest.The Bank of America 2026 Homebuyer Insights Report, released in June, documents how digital tools and human professionals now both factor into the homebuying process.Gen Z leads adoption of AI tools for home-buying researchBased on the Bank of America Institute survey, the 32% figure drops to 28% among millennials and to 20% among all prospective buyers and current homeowners who participated. The gap underscores how much younger buyers have embraced technology as a natural first step toward purchasing a home.Among Gen Z respondents who used AI, 57% used it to estimate affordability, mortgage payments, or closing costs; 55% used it for general education about the homebuying process; and 52% used it to research neighborhoods, market trends, or property values.Related: Zillow exposes hidden threat making homes unaffordableGraham Paterson, CEO of Jitty, said Gen Z’s natural distrust of traditional experts, combined with their unfamiliarity with the homebuying process, makes them far more inclined to turn to AI for guidance.”Gen Z is just naturally that much more distrusting, and because they don’t know the home-buying process, they’re much more likely to look for answers in something like AI,” Paterson told Fortune.Graham Paterson also told Fortune that younger buyers expect personalized digital experiences. They grew up with recommendation algorithms on streaming and social media platforms, and now apply those same expectations to home searches. His platform has grown between 30% and 80% month over month and recently surpassed 3 million website visitors, Paterson said.Younger buyers still prefer human professionals for tours and contractsDespite the growing enthusiasm for AI-powered research, Gen Z draws a clear boundary between browsing listings and signing binding contracts.More than half of prospective homebuyers in the survey said they prefer working with a human professional for tasks like touring properties and reviewing legal contracts.Jessica Li, a real estate agent at Atlanta Fine Homes Sotheby’s International Realty, told Fortune that a skilled buyer’s agent makes a measurable difference. Having someone negotiate on your behalf could mean securing a concession worth thousands of dollars rather than paying the full asking price, Li explained. “Housing is a tangible thing,” She said. “Until we have all the robots, I think, we’ll be important.”
AI may help buyers find homes, but Gen Z still trusts human agents for tours, contracts, and negotiating better real estate deals.Dougal Waters/Getty Images
Affordability pressure pushes Gen Z toward creative home-buying strategiesThe AI adoption trend exists within a broader context of severe affordability constraints that increasingly define this generation’s path to homeownership.About 58% of prospective buyers cited high home prices as a barrier to purchasing, up sharply from 46% in 2025, according to the Bank of America report. Nearly half (47%) cited elevated mortgage rates as a separate obstacle, up from 40% the prior year.More Real Estate:Americans face major decision after housing market newsZillow reveals major housing market shiftRealtor.com, ATTOM flag alarming housing riskThose cost pressures are pushing Gen Z toward home-buying strategies designed to spread costs across more than one buyer. Nearly one in three Gen Z respondents said they are considering co-buying a property with friends or family members.About 28% of Gen Z respondents reported taking on additional work to improve their financial position, and 31% plan to use homebuyer assistance programs, according to the survey.Confidence in homeownership is rising despite elevated housing costsThe affordability squeeze has not weakened Gen Z’s long-term belief in homeownership, and growing optimism could reshape buyer demand as the generation enters prime purchasing years.Across all survey respondents, 90% described homeownership as a valuable investment, up from 79% a year earlier, the Bank of America report found. Among Gen Z specifically, the share waiting for prices and interest rates to fall before purchasing dropped to 68%, down from 74% in 2025.What AI-fluent Gen Z buyers signal for the broader housing marketThat overall 20% adoption rate is poised to climb as Gen Z and millennials move deeper into their prime homebuying years over the coming decade.The survey reinforces that technology is supplementing, rather than replacing, the role of real estate professionals, a key distinction for the broader industry.Gen Z is not waiting for perfect conditions or relying on a single source of guidance when purchasing the most expensive asset of their lives. The blend of AI-powered research and human expertise at the closing table may set the template for how future Americans approach homeownership.Related: Berkshire Hathaway says to ignore this home-buying red flag