A majority of US consumers now express a preference for buying a home rather than renting or moving in with family, marking a significant shift in sentiment towards homeownership, according to Bank of America’s latest homebuyer insights report.
This is the first time since 2023 that the inclination has favoured purchasing a home. Despite ongoing challenges such as elevated mortgage rates, high home prices, and limited housing supply, optimism among prospective buyers appears to be growing.
Homeownership: Shifting Attitudes Among Younger Generations
The survey revealed that Gen Z and millennials are at the forefront of this shift, with 53 per cent of respondents now favouring buying a home. In contrast, 47 per cent still prefer renting or moving in with family. This change indicates a willingness among younger consumers to enter the housing market, despite current economic challenges.
Changing Mindsets on Timing
Interestingly, the report highlights that 71 per cent of respondents are waiting for interest rates and home prices to drop before making a purchase, a slight decrease from 75 per cent in 2025. This suggests a growing impatience among potential buyers, with many less inclined to remain on the sidelines in hopes of better conditions.
Homeowners Ready to Make Moves
Current homeowners are also adjusting their timelines for purchasing additional properties. The report reveals that 22 per cent of homeowners plan to buy another home within the next year, up from 15 per cent in 2025. This eagerness reflects a shift in mindset, as many individuals are opting to act rather than wait for perfect conditions.
Expert Insights on Market Sentiment
“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. His comments underline a growing trend of optimism that is beginning to overshadow the market’s hurdles.
Affordability Remains a Concern
While sentiment is shifting positively, affordability continues to be a significant barrier for many potential buyers. High home prices and elevated interest rates remain top concerns for consumers, highlighting the ongoing challenges faced in the current market landscape.
Embracing Technology in Homebuying
Interestingly, the survey also found that consumers are increasingly incorporating artificial intelligence (AI) into their homebuying processes. One in five prospective buyers and current homeowners reported using AI tools or chatbots in the past year to assist with cost calculations, neighbourhood scouting, and tracking market trends.
This integration of technology indicates that consumers are becoming more resourceful in navigating the complexities of homeownership, showing a keen interest in leveraging modern tools to facilitate their decisions.
