For the first time in three years, most consumers say it’s better to buy a home than rent one in the current market.
According to the latest Bank of America Homebuyer Insights Report, conducted in partnership with Bank of America Institute, 53% of respondents now favor buying over renting or moving in with family (47%).
The survey also revealed positive shifts in consumer sentiment toward homeownership, including:
- 90% of respondents say a home is a valuable investment, up from 79% in 2025.
- 94% say homeownership provides stability, up from 83% in 2025.
- 32% say they are more confident in their ability to buy a home this year, up from 27% last year.
“We are seeing meaningful changes in attitudes toward homeownership,” said Matt Vernon, Head of Consumer Lending at Bank of America. “Despite real and persistent challenges in the market, buyers and owners are increasingly optimistic, and many are starting to move forward rather than waiting on the sidelines.”
Affordability is Top Barrier
BofA noted that even as attitudes shift, prospective buyers increasingly cite affordability as the top barrier to homeownership, with 58% pointing to expensive home prices (vs. 46% in 2025) and 47% pointing to high interest rates (vs. 40% in 2025).
Bank of America Institute’s latest On the Move analysis also revealed that rent payments are going down, suggesting renters are trading down by opting for smaller units, fewer amenities, more remote areas, or shared living arrangements to cut costs.
Still, BofA noted that the intent to purchase a home is rising.
It said that fewer prospective buyers are waiting for market conditions to improve before buying. In this latest survey, 71% said they expect prices and interest rates to fall and are waiting until then to buy a home, compared to 75% in 2025, with Gen Z (68% vs. 74%) and Millennials (70% vs. 77%) leading that shift.
The analysis showed that 52% of current homeowners say they expect to buy another home (a new or additional one), and more are speeding up their timelines, with 22% planning to buy within the next year, compared to 15% last year.
Willing to Compromise
The survey points to increased willingness to compromise, with more prospective homebuyers open to moving—even if it means paying a higher interest rate for:
- A more affordable area (76% vs. 71% in 2025 and 68% in 2024).
- Their dream home becoming available (75% vs. 69% in 2025 and 67% in 2024).
- A better location (71% vs. 65% in 2025 and 63% in 2024).
One in five prospective buyers and current homeowners (20%) used AI tools or chatbots in the past year for homebuying research, including 28% of millennials and 32% of Gen Z. Among those prospective buyers who used AI, top use cases include:
- Estimating affordability, mortgage payments, or closing costs (57%).
- General education and research about the process (55%).
- Researching neighborhoods, market trends, or property values (52%).
- Although AI can be a useful tool, prospective buyers still prefer human expertise for key steps such as touring homes (55%) and legal or contractual advice (54%).
“AI is becoming a meaningful first step in the homebuying journey, especially for younger buyers. However, when it comes to high-stakes decisions, people still want trusted experts by their side,” Vernon said. “We find that clients prefer a mix of high-tech solutions such as Bank of America’s Digital Mortgage Experience – which streamlines the mortgage application process online or via mobile – paired with the high-touch experience and expertise of lending and real estate professionals along the way.”
According to the report, some Gen Zers are taking on extra jobs (28%) or considering co-buying with friends or family (32%) to make homeownership more attainable, and 31% plan to leverage homebuyer assistance programs
