US consumers favour homebuying over renting for first time since 2023
Prospective buyers appear less willing to wait for conditions to improve, with Gen Z and millennials leading the change in attitudes
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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 latest homebuyer insights report.
The findings point to improving sentiment toward 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. Now, 53 per cent of respondents now favour buying, while 47 per cent favoured renting or moving in with family.
Bank of America said 71 per cent of respondents were waiting for interest rates and home prices to fall before purchasing, 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, according to the report.
“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,” said Matt Vernon, head of consumer lending at Bank of America.
“We are seeing meaningful changes in attitudes toward homeownership.”
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.
Consumers are also increasingly including AI in their homebuying process. One in five prospective buyers and current homeowners used AI tools or chatbots in the past year to calculate costs, scout neighbourhoods and track market trends, the survey found.
Sparks Research polled 1,000 homeowners and 1,000 renters between April and May on behalf of BofA. REUTERS
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