By Saeed Azhar and Arasu Kannagi Basil
June 23 (Reuters) – A majority of U.S. consumers now say they would prefer to buy a home rather than rent or move in with family, the first time since 2023 that sentiment has favored homeownership, according to Bank of America’s latest homebuyer insights report.
The findings point to improving sentiment toward homeownership, even as elevated mortgage rates, high home prices and limited housing supply continue to weigh on the market.
Prospective buyers appear less willing to wait for conditions to improve, with Gen Z and millennials leading the change in attitudes, the survey showed. Of the 2,000 respondents to BofA’s poll, 53% now favor buying, while 47% favored renting or moving in with family.
“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. We are seeing meaningful changes in attitudes toward homeownership,” Bank of America head of consumer lending Matt Vernon said in a statement.
BofA said 71% of respondents were waiting for interest rates and home prices to fall before purchasing, down from 75% in 2025.
Homeowners are also moving up their timeline for buying another property. About 22% said they plan to purchase within the next year, compared with 15% in 2025, according to the report.
Still, affordability remains the biggest obstacle for would-be buyers, with high home prices and elevated interest rates ranking among consumers’ top concerns, the survey found.
“Affordability remains the main barrier or constraint out in the market, but that buyer intent is rising. Homeowners are still experiencing those life events that have traditionally led to a home purchase,” Vernon told Reuters.
Consumers are increasingly recognizing that higher rates may persist for longer, a view that aligns with BofA’s expectation that mortgage rates for the year will remain in a 6.25% to 6.75% range, he added.
The survey also found that prospective buyers and current homeowners are increasingly using AI in the homebuying process, with one in five using AI tools or chatbots in the past year to calculate costs, scout neighborhoods and track market trends.
(Reporting by Arasu Kannagi Basil in Bengaluru and Saeed Azhar in New York; Editing by Tasim Zahid)
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