A majority of Americans now believe buying a home is a better option than renting, marking the first time since 2023 that homeownership has been favored over renting, according to a new Bank of America study.
The latest Bank of America Homebuyer Insights Report found that 53% of respondents said it is better to buy a home in the current market, compared with 47% who favored renting or living with family.
The survey also found growing optimism about homeownership despite ongoing affordability challenges.
According to the report, 90% of respondents view a home as a valuable investment, up from 79% in 2025, while 94% said homeownership provides stability, up from 83% last year. Additionally, 32% said they are more confident in their ability to purchase a home this year, compared with 27% in 2025.
“We are seeing meaningful changes in attitudes toward homeownership,” said Matt Vernon, Head of Consumer Lending at Bank of America. “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.”
Affordability remains a major concern for prospective buyers. The report found that 58% cited high home prices as the biggest obstacle to homeownership, up from 46% a year ago, while 47% pointed to elevated interest rates, up from 40% in 2025.
Still, fewer prospective buyers said they are waiting for housing prices and mortgage rates to decline before entering the market. The survey found that 71% of respondents are delaying a purchase in hopes of lower prices or rates, down from 75% last year.
The report also found that 52% of current homeowners expect to purchase another home in the future, with 22% planning to buy within the next year, compared with 15% in 2025.
Researchers noted signs that the so-called “lock-in effect” — homeowners staying put to keep low mortgage rates — may be easing. More prospective buyers said they would consider moving despite higher interest rates if it meant finding a more affordable area, a better location or their ideal home.
The survey also highlighted the growing role of artificial intelligence in the homebuying process. One in five prospective buyers and current homeowners said they used AI tools or chatbots during the past year to research housing-related topics.
Among those who used AI, 57% used it to estimate affordability, mortgage payments or closing costs, while 55% used it for general education about the homebuying process and 52% used it to research neighborhoods, market trends and property values.
“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,” says Vernon. “We find that clients prefer a mix of high-tech solutions such as Bank of America’s Digital Mortgage Experience – which streamlines the mortgage application process online or via mobile – paired with the high-touch experience and expertise of lending and real estate professionals along the way.”
The study found younger buyers are increasingly turning to alternative strategies to achieve homeownership. Among Generation Z respondents, 28% reported taking on additional jobs to save for a home, while 32% said they would consider purchasing a home with friends or family members. Another 31% said they plan to use homebuyer assistance programs to help cover down payment and closing costs.
