A COO’s Take on AI and the Future of Residential Real Estate.
We’re not in a crisis. But we’re not in a boom, either. What we’re in right now is something far more interesting — and far more demanding: a pivot point.
Pending home sales edged up slightly from January to February, yet still sit below year-ago levels — even as mortgage rates briefly dipped below 6% for the first time in years. Active listings have climbed roughly 12% compared to a year ago, giving buyers more options, but ongoing economic uncertainty, affordability constraints, and cautious sellers are keeping many on the sidelines. Housing affordability remains roughly 35% below its pre-COVID level, and that gap won’t close overnight.
As a COO, I don’t spend a lot of time waiting for the market to cooperate. I spend it building an operation that can thrive in any market. And right now, the single biggest lever available to residential brokerages isn’t rate cuts or inventory cycles — it’s artificial intelligence.
The Productivity Gap Is Real, and It’s Widening
Here’s the honest truth: the brokerages pulling ahead in 2026 are not necessarily the ones in the best markets. They’re the ones that have moved beyond experimentation and embedded AI into how they actually work. The “AI productivity gap” is widening, and organizations that operationalize AI inside their workflows are outpacing those who stay in pilot mode.
From where I sit, there are two areas where AI is delivering the most immediate and meaningful impact for residential brokerages — and both happen to be areas that define the quality of our business: operations, and relationships.
Freeing Our People from the Work That Drains Them
Think about what a productive agent’s day actually looks like. Too much of it is spent on tasks that have nothing to do with expertise, judgment, or trust. Follow-up emails, transaction checklists, scheduling, compliance documentation — the administrative weight is real. Agentic AI is changing that equation by shifting human contribution toward higher-value activities, so agents spend more time on negotiation, advisory services, and relationship management rather than manual coordination.
Morgan Stanley research suggests that brokers and services show the highest potential for automation gains — with a possible 34% increase in operating cash flow — as they may be among the furthest along in adopting generative AI tools at scale. That’s not a marginal improvement. That’s a structural advantage.
As COO, my job is to make sure our agents are spending their energy where it actually matters. AI doesn’t replace that human expertise — it protects it.
Relationships at Scale, Without Losing the Personal Touch
The client relationship has always been the heart of residential real estate. What AI is changing is our ability to sustain that relationship at scale, and with greater precision. AI recommendation engines can analyze buyer behavior — which listings they view, how long they engage, what they save — and identify preferences buyers may not even articulate themselves, generating insight reports that keep clients engaged and loyal to their agent.
A recent industry survey found that 79% of agents believe being discoverable via AI is critical to their success. The agents and brokerages that will win the next chapter are those building genuine local expertise — and making sure that expertise is the answer AI surfaces when a buyer or seller starts their search.
What This Moment Requires
Leading housing economists see 2026 as a year of rebalance, with improving affordability expected to drive more transactions — not dramatic price growth, but increased activity. That’s a market where execution wins. Where the brokerage that responds faster, advises more clearly, and follows through more consistently takes the deal.
AI won’t do that for us. But it will clear the runway so our people can.
The question I keep coming back to is not whether AI will reshape residential real estate. That’s already decided. The question is whether we’re building the kind of organization that earns the trust of clients and agents in a world where the technology is table stakes — and the humanity is the differentiator.
That’s the work. And from where I stand, we’re just getting started.