For the first time since 2023, a majority of consumers say it's better to buy a home than rent or live with family, according to Bank of America's 2026 Homebuyer Insights Report. The findings suggest attitudes toward homeownership are improving even as affordability remains the biggest challenge facing prospective buyers.
The survey, conducted in partnership with Bank of America Institute, found 53% of respondents now believe buying a home is the better option, compared with 47% who favor renting or living with family. It also suggests buyers may be becoming less willing to wait for mortgage rates and home prices to fall before entering the market.
"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."
Buyers Show Signs Of Adapting To Today's Market
Affordability continues to weigh on prospective buyers. Fifty-eight percent of respondents cited high home prices as the biggest barrier to homeownership, up from 46% in 2025, while 47% cited elevated mortgage rates, up from 40% a year earlier.
Even so, fewer prospective buyers said they are waiting for home prices and interest rates to fall before purchasing. Seventy-one percent said they are delaying a home purchase until market conditions improve, down from 75% in 2025. The decline was even more pronounced among younger buyers, with Gen Z falling to 68% from 74% and Millennials to 70% from 77%.
The survey also found that the mortgage rate lock-in effect, while still present, appears to be easing.
More prospective buyers said they would accept a higher mortgage rate if it meant purchasing a home in a more affordable area, securing their dream home, or moving to a better location. Seventy-six percent said they would pay a higher rate for a home in a less expensive market, up from 71% in 2025. Seventy-five percent said they would do so if their dream home became available, while 71% would accept a higher rate for a better location.
Current homeowners also appear increasingly ready to make another move. More than half (52%) said they expect to purchase another home, and 22% plan to do so within the next year, up from 15% in 2025.
Confidence in homeownership also strengthened. Ninety percent of respondents said a home is a valuable long-term investment, up from 79% last year, while 94% said homeownership provides stability, compared with 83% in 2025. Nearly one-third (32%) also said they are more confident in their ability to purchase a home this year, up from 27% a year ago.
AI Plays A Growing Role In Homebuying
Artificial intelligence is becoming a more common part of the homebuying process, particularly among younger consumers.
One in five prospective buyers and current homeowners (20%) said they used AI tools or chatbots over the past year during their homebuying research. Usage climbed to 32% among Gen Z respondents and 28% among Millennials.
Among those who used AI, the most common applications included estimating affordability, mortgage payments, and closing costs (57%), learning about the homebuying process (55%), and researching neighborhoods, market trends, or property values (52%).
Despite the growing use of AI, respondents still favored human expertise for major decisions. More than half said they prefer working with professionals when touring homes (55%) and receiving legal or contractual advice (54%).
"AI is becoming a meaningful first step in the homebuying journey, especially for younger buyers," Vernon said. "However, when it comes to high-stakes decisions, people still want trusted experts by their side."
Gen Z Looks For Creative Ways To Buy
The survey found that younger buyers continue to adapt to affordability challenges.
Among Gen Z respondents, 28% said they have taken on additional jobs to help achieve homeownership, while 32% said they would consider purchasing a home with friends or family. Another 31% plan to use homebuyer assistance programs, such as down payment or closing cost assistance, to make buying a home more attainable.
The Homebuyer Insights Report is based on an online survey conducted by Sparks Research on behalf of Bank of America between April 13 and May 10, 2026. The survey included 2,000 U.S. adults — 1,000 homeowners and 1,000 renters — who make or share household financial decisions and either own a home, previously owned a home, or plan to own one in the future.
