There is a pivotal signal emerging from US consumers, with a preference for homeownership surpassing the inclination to rent for the first time since 2023, even as the dual pressures of high interest rates and elevated home prices persist.
A recent homebuyer insights report from Bank of America, based on a survey of 2,000 US consumers, reveals that 53% expressed a preference for buying a home, while 47% favored renting or living with family. This marks the first instance since the survey's inception in 2023 where the majority has leaned towards purchasing.
Key Drivers of the Shift
Notably, Generation Z and Millennials are the primary forces behind this change in sentiment, with a growing number of potential buyers choosing to take action rather than waiting for market conditions to improve. Matt Vernon, Head of Consumer Lending at Bank of America, commented on this trend.
"Despite the real and persistent challenges in the market, homebuyers and homeowners are becoming increasingly optimistic, with many deciding to take steps forward instead of remaining on the sidelines. We are observing a notable shift in attitudes towards homeownership," Vernon stated.
Easing of Wait-and-See Sentiment
The report's data indicates that while the proportion of consumers waiting for interest rates and home prices to fall before buying remains high, it has decreased from 75% in 2025 to 71% currently. This suggests that some potential buyers are gradually coming to terms with the possibility that high rates may persist.
Among existing homeowners, plans to purchase a second home have also accelerated significantly. The report shows that approximately 22% of current homeowners plan to re-enter the market within the next year, compared to just 15% in 2025.
Matt Vernon noted that consumers are increasingly recognizing that high interest rates may be here to stay for a longer period, which aligns with Bank of America's expectation that mortgage rates will remain in the 6.25% to 6.75% range for the year.
Affordability Remains a Hurdle, But Desire to Buy Grows
Despite the resurgence in buying interest, high home prices and high interest rates continue to be the most significant constraints for consumers. The report highlights that affordability issues consistently rank as the top concern among potential buyers' obstacles.
Matt Vernon pointed out that the structural drivers of demand have not diminished, stating, "Housing affordability remains the primary obstacle and limiting factor in the market, but the desire to buy is on the rise. Homeowners still experience those life-stage events that traditionally drive homebuying decisions, such as marriage, having children, or job changes."
The Bank of America report also indicates that consumer confidence in buying a home is gradually recovering, even amidst a challenging macroeconomic environment.
Emerging Trend: AI in Homebuying
The report reveals an emerging trend: artificial intelligence is entering the homebuying decision-making process. The survey shows that over the past year, potential buyers and existing homeowners have increasingly turned to AI tools for assistance. Approximately one-fifth of respondents reported using AI tools or chatbots to estimate purchase costs, screen target neighborhoods, and track market trends.
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