Zillow brings AI-powered Virtual Staging to Showcase listings

Rhea-AI Summary

Zillow (NYSE:ZG) has launched an AI-powered Virtual Staging feature integrated into Zillow Showcase, its premium listing platform. The new technology allows home shoppers to instantly visualize rooms in different design styles through an interactive interface. Virtual Staging represents the first major integration from Zillow's October 2024 acquisition of Virtual Staging AI (VSAI).

The feature demonstrates significant business impact, as Showcase agents win 30% more listings than non-Showcase agents, and Showcase listings sell for an average of $7,000 more than comparable non-Showcase properties. This launch follows Zillow's Summer introduction of SkyTour, an interactive aerial view feature, marking continued innovation in the digital home shopping experience.

Positive

• Integration of acquired VSAI technology shows successful M&A execution
• Showcase listings sell for $7,000 more on average than non-Showcase listings
• Agents using Showcase win 30% more listings than non-Showcase agents
• Technology addresses market demand, as 71% of sellers prefer agents using interactive media
• Expansion of premium Showcase product strengthens competitive position

Negative

• Significant investment in AI technology development and integration required
• Success depends on agent adoption and willingness to pay for premium features

Insights

Real Estate Technology Analyst

Zillow's new AI Virtual Staging for Showcase listings creates competitive advantage with interactive visualization that drives agent adoption and listing premiums.

Zillow has strategically expanded its premium Showcase listing platform with AI-powered Virtual Staging, addressing a fundamental challenge in real estate marketing: helping buyers visualize unfurnished or differently styled spaces. This feature allows users to instantly transform property photos using seven design styles (modern, Scandinavian, industrial, midcentury, luxury, coastal, farmhouse) through an interactive interface.

The technology integration comes from Zillow's October 2024 acquisition of Virtual Staging AI (VSAI), representing a swift productization of acquired capabilities. What makes this particularly significant is how it bolsters Zillow's premium Showcase offering, which already demonstrates measurable market advantages - Showcase listings sell for $7,000 more on average than comparable non-Showcase listings, and agents using Showcase win 30% more listings.

This launch continues Zillow's aggressive enhancement of its platform following its Summer Launch which introduced SkyTour aerial viewing. The strategic importance lies in how these features collectively strengthen Zillow's position in the competitive real estate listing ecosystem while addressing documented consumer preferences - their research indicates 71% of sellers prefer agents using interactive media.

From a business perspective, Virtual Staging represents a dual-value proposition: enhancing the consumer shopping experience while providing agents with differentiated marketing tools that save time and potentially command higher listing prices. By deeply integrating AI into core product offerings rather than treating it as a separate initiative, Zillow is executing on its stated AI strategy of personalization, agent empowerment, and premium experience delivery.

A new on-demand feature helps buyers picture the potential — and gives agents using Zillow Showcase a competitive edge

SEATTLE, Sept. 10, 2025 /PRNewswire/ -- Zillow® today announced the launch of Virtual Staging, an AI-powered feature built directly into Zillow Showcase℠, the company's premium listing experience. Now, home shoppers viewing listing photos can tap a button, choose from a curated set of design styles and see select rooms fully staged.

"Buying a home is an emotional decision as much as a financial one," said Amanda Pendleton, Zillow's home trends expert. "Too many buyers overlook what could be the perfect home for their family simply because they can't see past the furniture or design choices. Virtual Staging helps people envision themselves living in a space. It's a new way to explore what a home could feel like, and a simple tool for agents to show off a home's true potential."

Zillow's Summer Launch introduced SkyTour, an interactive aerial view of a property, along with other upgrades that simplify home shopping and make it easier to browse, plan and tour. Together, SkyTour and Virtual Staging set a new standard. They deliver the smart, seamless digital experience today's buyers, sellers and agents now expect throughout the home shopping journey.

How it works
Many buyers struggle to picture themselves in a home, especially when it's empty or styled differently from their own. Virtual Staging gives them a quick, interactive way to see how it could look and feel in a style they love.

On Showcase listings, a Virtual Staging icon appears on select featured room photos. From there, buyers can tap the icon, choose from curated design styles — including modern, Scandinavian, industrial, midcentury, luxury, coastal and farmhouse — and AI restyles the space, whether the room is empty or already furnished.

Shoppers can also tap the circle arrow icon on the design style card to refresh the room in the same style, generating a new furniture arrangement for fresh inspiration. Once the staged image appears, shoppers can slide between views to see the transformation. Virtual Staging can also remove furniture entirely, helping shoppers see the home as a blank slate ready for their imagination. 

A smarter way to shop — and sell
For agents and sellers, Virtual Staging is a high-impact way to make listings stand out in a competitive market. The benefits are clear:

• It encourages exploration: Staged images give buyers another reason to click through and interact with listings.
• It meets demand for interactive media: According to Zillow's 2024 Consumer Housing Trends Report, 71% of sellers are more likely to hire an agent who uses interactive media, such as virtual tours or floor plans — and Virtual Staging builds on that demand.

And when paired with Showcase, the impact is even stronger, providing a competitive edge: Agents using Showcase on the majority of listings already win 30% more listings than non-Showcase agents, and Showcase listings sell for $7,000 more on average than similar non-Showcase listings.[1]

Zillow's AI innovation in action
Virtual Staging is the first major integration of technology from Virtual Staging AI (VSAI), first introduced through Zillow's October 2024 acquisition of that company. 

"Virtual Staging is the latest example of how we're bringing our AI strategy to life for consumers and agents," said Josh Weisberg, senior vice president of AI at Zillow. "From the Zestimate to personalized search and now to dynamic listing experiences, AI has long been part of Zillow's DNA. Virtual Staging applies the AI field of computer vision to restyle listing photos in real time to help shoppers see a home's potential and give agents a time-saving way to stand out. It's the next chapter in Showcase's evolution and a step forward in making home shopping more immersive and personal."

Zillow's AI can quickly create digitally staged images — a capability that's been available to real estate photographers and media companies through Aryeo since March, at no extra cost to Aryeo subscribers. That integration has made it easier for photography professionals to stage photos virtually and deliver them to agents.

Now, by embedding this same technology and realism directly into Showcase, Zillow introduces a new consumer-facing, interactive staging experience, creating a seamless, visual way for buyers to explore a home and a powerful, time-saving marketing tool for agents.

The integration reflects Zillow's broader AI vision to:

• Personalize the experience for buyers and sellers — helping buyers reimagine a space in styles they love, while giving sellers new ways to make their home stand out on Zillow.
• Make the process effortless for agents — delivering high-impact listings that support success at the listing presentation.
• Fully integrate AI into Showcase — enhancing Zillow's premium listing experience.

Virtual Staging shows what happens when AI in real estate moves beyond the buzz by delivering visual results that make shopping smarter for buyers and marketing easier for agents. With innovations like this, Zillow is building the future of home shopping.

About Zillow Group:
Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people. As the most visited real estate app and website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, dedicated real estate professionals, and easier buying, selling, financing, and renting experiences. 

Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans℠, Zillow Rentals®, Trulia®, Out East®, StreetEasy®, HotPads®, ShowingTime+℠, Spruce®, and Follow Up Boss®. 

All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2025 MFTB Holdco, Inc., a Zillow affiliate.

(ZFIN)

[1] https://showingtimeplus.com/showcase-facts

 

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SOURCE Zillow

FAQ

What is Zillow's new Virtual Staging AI feature and how does it work?

Zillow's Virtual Staging is an AI-powered tool within Zillow Showcase that allows buyers to instantly visualize rooms in different design styles including modern, Scandinavian, industrial, midcentury, luxury, coastal, and farmhouse. Users can tap an icon on select photos to transform spaces and slide between views.

How much more do Zillow Showcase listings sell for compared to regular listings?

According to Zillow, properties listed through Showcase sell for $7,000 more on average compared to similar non-Showcase listings.

When did Zillow acquire Virtual Staging AI (VSAI)?

Zillow acquired Virtual Staging AI (VSAI) in October 2024, with this Virtual Staging feature being the first major integration of VSAI's technology.

What percentage of sellers prefer agents using interactive media according to Zillow?

According to Zillow's 2024 Consumer Housing Trends Report, 71% of sellers are more likely to hire an agent who uses interactive media, such as virtual tours or floor plans.

How much more successful are Zillow Showcase agents in winning listings?

Agents using Showcase on the majority of their listings win 30% more listings than agents not using Showcase.