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Consumer confidence in homeownership in the United States has improved, with a majority of respondents now preferring to buy a home rather than rent or live with family. According to Bank of America's latest Homebuyer Insights Report, this is the first time since 2023 that sentiment has shifted in favor of homeownership. While affordability challenges, elevated mortgage rates and limited housing supply continue to affect the housing market, prospective buyers appear increasingly willing to move ahead with purchase plans. Younger generations, particularly Gen Z and millennials, are driving this change in outlook.
A growing number of Americans are showing renewed interest in homeownership despite continued affordability pressures, according to Bank of America's latest Homebuyer Insights Report.
The survey found that 53% of the 2,000 respondents preferred buying a home, compared with 47% who said they would rather rent or live with family. This marks the first time since 2023 that consumer sentiment has shifted in favor of homeownership.
The findings suggest that many prospective buyers are becoming more comfortable navigating current market conditions, even as high home prices, elevated mortgage rates and limited housing inventory continue to create challenges. The shift in sentiment is being led primarily by Gen Z and millennial consumers, who appear less willing to delay homeownership while waiting for more favorable conditions.
Bank of America’s Head of Consumer Lending, Matt Vernon, said buyers and homeowners were becoming increasingly optimistic despite ongoing market challenges. He noted that many consumers were choosing to move forward with their plans instead of remaining on the sidelines, reflecting meaningful changes in attitudes toward homeownership.
The report also showed a gradual decline in the number of consumers waiting for lower borrowing costs and housing prices before making a purchase. About 71% of respondents said they were waiting for interest rates and home prices to fall before buying a home, compared with 75% who expressed the same view in 2025.
Existing homeowners are also becoming more active in the market. Around 22% said they plan to purchase another property within the next year, up from 15% reported a year earlier. The increase suggests that life events such as family expansion, relocation and lifestyle changes continue to drive housing demand despite affordability concerns.
At the same time, affordability remains the biggest hurdle for many potential buyers. High property prices and elevated interest rates continue to rank among consumers' primary concerns when considering a home purchase.
Vernon told Reuters that affordability remains the key constraint in the housing market, although buyer intent continues to improve. He added that homeowners are still experiencing the traditional life milestones that often lead to purchasing a home, helping sustain demand.
The report further noted that consumers are increasingly accepting the possibility that higher interest rates may remain in place for longer than previously expected. This outlook aligns with Bank of America's forecast that mortgage rates will remain between 6.25% and 6.75% throughout the year.
Another notable trend highlighted in the survey is the growing use of artificial intelligence during the homebuying process. One in five respondents said they had used AI-powered tools or chatbots over the past year to estimate costs, research neighborhoods and monitor housing market trends. The findings indicate that digital tools are becoming an increasingly important part of how consumers approach real estate decisions.
Source Reuters
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