US consumers favour homebuying over renting for first time since 2023
Prospective buyers appear less willing to wait for conditions to improve
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[NEW YORK] A majority of US consumers now say they would prefer to buy a home rather than rent or move in with family, the first time since 2023 that sentiment has favoured homeownership, according to Bank of America’s (BOA) latest homebuyer insights report.
The findings point to improving sentiment towards homeownership, even as elevated mortgage rates, high home prices and limited housing supply continue to weigh on the market. Prospective buyers appear less willing to wait for conditions to improve, with Gen Z and millennials leading the change in attitudes, the survey showed.
Of the 2,000 respondents to BOA’s poll, 53 per cent now favour buying, while 47 per cent favoured renting or moving in with family.
“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. We are seeing meaningful changes in attitudes towards homeownership,” BOA head of consumer lending Matt Vernon said in a statement.
BOA said 71 per cent of respondents were waiting for interest rates and home prices to fall before buying, down from 75 per cent in 2025. Homeowners are also moving up their timeline for buying another property. About 22 per cent said they plan to purchase within the next year, compared with 15 per cent in 2025,said the report.
Still, affordability remains the biggest obstacle for would-be buyers, with high home prices and elevated interest rates ranking among consumers’ top concerns, the survey found.
“Affordability remains the main barrier or constraint out in the market, but that buyer intent is rising. Homeowners are still experiencing those life events that have traditionally led to a home purchase,” Vernon told Reuters. Consumers are increasingly recognising that higher rates may persist for longer, a view that aligns with BOA’s expectation that mortgage rates for the year will remain in a 6.25 to 6.75 per cent range, he added.
The survey also found that prospective buyers and current homeowners are increasingly using AI in the homebuying process, with one in five using AI tools or chatbots in the past year to calculate costs, scout neighbourhoods and track market trends. REUTERS
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