Consumers have begun to signal a preference for buying homes over renting. For the first time since 2023, a majority say ownership makes more sense in the current environment. Bank of America’s latest survey captures the shift. The 2026 Homebuyer Insights Report shows 53% favor buying a home while 47% choose renting or moving in with family.
That reversal arrives despite mortgage rates that remain elevated and home prices that continue to climb. Buyers appear ready to accept the market as it stands. They cite stubborn affordability as the chief obstacle. Yet many now plan to act instead of wait.
The numbers tell a story of growing confidence. Ninety percent of respondents call homeownership a valuable investment, up from 79% the previous year. Ninety-four percent say it provides stability, a jump from 83%. And 32% report greater confidence in their ability to buy this year compared with 27% last year. HousingWire detailed these gains in its coverage of the report released Tuesday.
But barriers have grown more visible too. Fifty-eight percent point to expensive home prices, compared with 46% in 2025. Forty-seven percent flag high interest rates, up from 40%. The survey, conducted online by Sparks Research from April 13 to May 10 and involving 2,000 adults split evenly between homeowners and renters, captures a population that feels the pinch yet sees ownership as worth pursuing.
Buyers move from hesitation to action
Fewer consumers say they will sit on the sidelines until conditions improve. Seventy-one percent still expect prices and rates to fall and plan to wait, down from 75% a year earlier. Gen Z respondents dropped to 68% from 74%, while Millennials fell to 70% from 77%. Twenty-two percent of prospective buyers now intend to purchase within the next year, up sharply from 15% in 2025. Fifty-two percent of current homeowners expect to buy another property.
Lock-in effects that kept owners in place appear to ease. More say they would sell for a better location, a dream home that becomes available, or simply an affordable alternative. Life events and practical needs drive the change. So does a sense that today’s rates may represent the new baseline. Bank of America analysts have projected rates could settle between 6.25% and 6.75% for some time.
Matt Vernon, head of consumer lending at Bank of America, captured the mood. “We are seeing meaningful changes in attitudes toward homeownership,” he said in the bank’s official release. “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.”
The Reuters account noted similar trends. Gen Z and Millennials lead the attitudinal swing. Homeowners accelerate timelines because of family changes or job moves. The news service reported that intent to purchase rises even as affordability complaints intensify.
Younger buyers deploy creative tactics. Roughly one-third of Gen Z respondents consider purchasing with friends or family. Twenty-eight percent take on additional jobs. Thirty-one percent explore down-payment assistance programs that can reach $17,500. These steps reflect pressure to enter the market before prices climb further. Social media amplifies the effect. Friends buying homes create visible benchmarks that spur action.
Technology plays a supporting role. One in five prospective buyers and homeowners report using artificial intelligence tools during their search. The figure climbs to 32% among Gen Z and 28% for Millennials. They query AI on mortgage costs, neighborhood values, market trends and school ratings. Yet most still demand human guidance for critical steps. Fifty-five percent want help touring properties. Fifty-four percent seek legal advice. Vernon addressed the balance. “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.”
Renters face their own calculations. Some data suggest actual rent payments have declined in recent months as tenants trade down to cheaper units. That eases one side of the equation. But it does not erase the long-term wealth gap between owners and renters. Home equity builds over decades. Rent payments do not.
The Federal Reserve’s earlier look at household economic well-being, though from 2024 data, showed 63% of adults owned homes while 28% rented. Many renters cited financial constraints or viewed ownership as too risky. The newest BofA findings indicate that calculation may have started to change for a larger group.
Still, the market supplies reasons for caution. Inventory stays tight in many areas. Prices rose steadily through 2025. Mortgage rates, while off their peaks, have not fallen enough to unlock broad affordability. Prospective buyers who once hoped for quick relief now appear resigned to higher carrying costs. They bet that ownership will deliver appreciation and stability over time.
Economists and real estate analysts watch these sentiment measures closely. Shifts in buyer psychology can influence everything from sales volume to pricing power. If more households decide to buy rather than rent, demand could push prices higher in the near term. Builders might respond with increased construction. Lenders could see pipeline growth. Yet any slowdown in economic momentum or rise in unemployment would test the new optimism quickly.
For now the data point to resolve. Consumers have weighed the trade-offs. They acknowledge the costs. And a slim but clear majority has concluded that buying offers the better path. The preference may prove fragile. Rates could surprise to the upside. Prices might accelerate. But the June 2026 snapshot shows American households tilting back toward ownership after two years of leaning the other way.
That tilt carries implications for mortgage originators, home builders, rental operators and policy makers. It also underscores a persistent American belief in housing as both shelter and store of value. Even when the arithmetic looks daunting, the pull remains strong.
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