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Majority of US consumers now favour buying a home over renting

Cyprus Mail · 2026-06-27

AI SUMMARY

• What happened: A recent Bank of America report reveals that a majority of US consumers (53%) now prefer buying a home over renting or living with family, marking a shift in sentiment towards homeownership for the first time since 2023. • Why it matters: This change indicates improving consumer confidence in the housing market despite ongoing challenges such as high mortgage rates and limited supply, with younger generations leading the trend towards homeownership. • What to watch next: Monitor how consumer behavior evolves in response to economic factors like interest rates and home prices, as well as the increasing use of AI tools in the homebuying process.

**Majority of US Consumers Favor Home Buying Over Renting, New Report Reveals**

A recent report from Bank of America indicates a significant shift in consumer sentiment regarding homeownership, with a majority of US consumers now expressing a preference for buying a home rather than renting or moving in with family. This marks the first time since 2023 that the inclination towards homeownership has surpassed that of renting.

According to the Bank of America Homebuyer Insights Report, 53% of respondents indicated they would rather purchase a home, while 47% preferred renting or living with family. This change in attitudes is particularly pronounced among younger generations, specifically Gen Z and millennials, who are leading the charge in favor of homeownership.

Despite ongoing challenges in the housing market, including elevated mortgage rates, high home prices, and limited housing supply, the findings suggest an improving sentiment towards homeownership. The report highlights that 71% of respondents are currently waiting for interest rates and home prices to decrease before making a purchase, a slight decline from 75% in 2025. This indicates a growing willingness among potential buyers to engage with the market, even in the face of economic uncertainties.

Furthermore, the report reveals that current homeowners are also adjusting their timelines for purchasing additional properties. Approximately 22% of homeowners stated they plan to buy another property within the next year, a notable increase from 15% in 2025. Matt Vernon, head of consumer lending at Bank of America, commented on the findings, stating, “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.”

However, affordability remains a significant barrier for many potential buyers. The survey identified high home prices and elevated interest rates as the primary concerns for consumers considering home purchases. As the market continues to evolve, these factors will likely play a critical role in shaping consumer behavior and decision-making.

In a noteworthy trend, the report also highlights the increasing integration of artificial intelligence (AI) in the homebuying process. One in five prospective buyers and current homeowners reported using AI tools or chatbots in the past year to assist with various aspects of their home search, including calculating costs, scouting neighborhoods, and tracking market trends. This reflects a broader technological shift in how consumers approach significant financial decisions.

The survey, conducted by Sparks Research, polled 1,000 homeowners and 1,000 renters between April and May on behalf of Bank of America. The results underscore a changing landscape in the US housing market, with a growing number of consumers leaning towards homeownership despite the prevailing economic challenges.

As the market continues to develop, it will be essential to monitor how these trends evolve and what impact they may have on the overall housing landscape in the coming months. The findings from Bank of America’s report provide valuable insights into consumer preferences and behaviors, suggesting a potential resurgence in home buying activity as optimism grows among prospective buyers.

Source: Cyprus Mail
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