The Impact of AI and the Future of Real Estate

The Weekly Recap

Good morning and happy Friday! The NYC office market is booming, stocks entered year three of its bull market run, LVMH the leading indicator for luxury is up 13%, Bitcoin took a bit of a tumble, the first mayoral debate was last night and it was a slugfest. People apparently like waiting in line outside restaurants for hours in NYC and the Brooklyn Mirage is set to be demolished (sorry Ariana).

If you missed last weeks newsletter on What Can Sellers Expect From the Market for the Remainder of 2025, you can read that through the link.

The Impact of AI and the Future of Real Estate

As artificial intelligence continues to evolve at an extraordinary pace, industries across every sector are reassessing how these technologies will reshape their operations, strategies, and customer engagement. Real estate historically is an industry that has been slow to adopt new technologies. While real estate practitioners often lag behind in integrating innovation, tech companies, platforms, and consumers tend to embrace these tools more quickly which drive shifts in how real estate is marketed, managed, and experienced.

Where real estate has tried to innovate more quickly in the past was during the rise of the Metaverse, when many real estate professionals rushed to establish virtual presences and sell digital land. That experiment, while visionary at best and hopeful at worst, ultimately fell short. Artificial intelligence, though presents a far more tangible and transformative opportunity, one that, if leveraged correctly, can help agents enhance productivity, elevate client service, and make smarter, data-driven decisions.

AI also brings its challenges. Automation and predictive analytics can streamline processes, but they cannot replace the deeply human aspects of real estate which rely on empathy, intuition, negotiation, and trust. Real estate remains, at its core, 20% technical and 80% behavioral. Success in this business will always depend on the agent’s ability to connect with clients, understand their needs, and guide them through one of the most personal transactions of their lives.

AI will undoubtedly redefine the tools we use, but not the essence of the profession. The agents who learn to blend this technology with authentic human connection will not only adapt to this new era, they’ll be at the forefront.

Market Performance

Here are how some other indexes and asset classes have performed as of this morning’s opening bell.

NYC Market Update

Here is a view of NYC market activity over the past week.

Mortgage Rate Update

The 30-year fixed-rate mortgage inched down again this week and have head relatively steady the last few weeks. Homeowners have noticed the lower rates which has driven an uptick in refinance activity. Combined with increased housing inventory and slower house price growth, these rates are also creating a more favorable environment for those looking to buy a home.

News You Can Use

• Squeezing Builders Isn’t the Way to Lower Housing Costs Bloomberg

• The New York City Office Market is Roaring Back, and It’s Pricier Than Ever Wall Street Journal

• The Bull Market Enters Year Three Bloomberg

• Major Real Estate Developers Are Fast Becoming Power Brokers CNBC

• Powell Says Fed May Stop Shrinking Balance Sheet in Months Ahead Bloomberg

• Who Won the First NYC Mayoral Debate? NY Post

• AI Stocks Are in a Bubble, Most Investors Say in BofA Survey Bloomberg

• These Are the Most Expensive Zip Codes in the US NY Post

• LVMH Shares Surge 13% as Luxury Leader Returns to Growth Financial Times

• US Regulators Poised to Offer Capital Relief to Community Banks Bloomberg

• Brooklyn Mirage Is Getting Demolished Gothamist

• Waiting On Line for Meals is Latest NYC Trend NY Post

The Deep Insight

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