Property management firms integrating artificial intelligence (AI) into their core workflows are reporting stronger growth expectations than the broader market, according to a new report from AppFolio.
In the technology leader’s 2026 Property Management Benchmark Report, 44% of all respondents—and over half of executive leaders—are using AI in their roles. Firms that have broadly adopted AI reported that they expect an average portfolio growth of 31% this year, nearly triple the 12% growth anticipated by those yet to implement the technology.
In addition, the report found that AI adoption isn’t replacing human talent. Just over one-third of AI adopters, 34%, said they plan to increase headcount to support their operations compared with 25% of non-users.
“The most successful firms are no longer just managing properties; they are managing performance,” said Stacy Holden, vice president, industry principal, at AppFolio. “The data shows that by leveraging an AI-native platform to unify their systems of record, action, and growth, operators can move beyond the daily grind and focus on the high-impact work that defines real estate performance management.”
AppFolio surveyed 1,617 residential property management professionals between Sept. 26 and Nov. 3 to gain their insights on today’s environment and how they are navigating market challenges.
Despite challenges, 81% reported that they remain optimistic about the state of their business, and 77% said they expect to add new units this year.
Maintaining high occupancy rates and rising operating costs top the list of threats for the respondents at 55% and 54%, respectively. Both threats have become more common, with occupancy rates increasing 12% and rising operating costs jumping 15% from last year’s report.
Adopting new technologies is at the top of the list for navigating these threats, jumping from third place last year. Training followed, while consolidating software saw a large year-over-year increase by respondents.
The top cost-cutting strategy for 2026 for the majority of respondents, 74%, is filling vacant units more quickly and efficiently; in addition, 42% touted negotiating better rates with preferred vendors, and 39% cited using AI or other technologies to improve efficiency.
Here are some additional key findings from the report:
- 86% of respondents reported taking steps to improve the resident experience. Top strategies include improving communication, 58%; removing friction from the move-in process, 37%; and streamlining maintenance, 36%;
- 72% said they measure resident satisfaction, up from 70% last year and 60% in 2024; and
- Only 34% reported no issues with resident onboarding. Utility setup stood out as the greatest challenge for 30% of the respondents.