A significant shift in sentiment among U.S. consumers towards homeownership has been reported, with a majority now expressing a preference to buy rather than rent or live with family. This marks the first time since 2023 that homeownership sentiment has taken the lead, according to Bank of America’s (BofA) latest homebuyer insights report. Bank of America is a major U.S. financial services institution providing a wide range of banking, investing, and asset management products and services. The survey, which polled 2,000 respondents, found 53% favour buying, while 47% preferred renting or moving in with family, with Gen Z and millennials leading this attitudinal change.
This improving outlook comes despite the persistent challenges in the housing market, including elevated mortgage rates, high home prices, and limited housing supply. Prospective buyers appear less willing to wait for conditions to improve, a notable shift observed by industry experts. Matt Vernon, Bank of America’s head of consumer lending, stated, “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 report also indicated that 71% of respondents were waiting for interest rates and home prices to fall before purchasing, a decrease from 75% in a prior survey.
Homeowners are also adjusting their timelines for acquiring additional property. Approximately 22% of current homeowners now plan to purchase within the next year, an increase from 15% in a previous report. However, affordability continues to be the primary obstacle for aspiring buyers, with high home prices and elevated interest rates remaining top concerns. Vernon noted that while affordability remains the main barrier, buyer intent is clearly on the rise. Consumers are increasingly acknowledging that higher rates may persist for longer, aligning with BofA’s expectation that mortgage rates will remain in a 6.25% to 6.75% range for the year. Furthermore, the survey highlighted a growing adoption of artificial intelligence in the homebuying process, with one in five respondents using AI tools or chatbots in the past year for tasks such as calculating costs, scouting neighbourhoods, and tracking market trends.
